Comprehensive Guide to Commercial Fitness Equipment Financing Thru Liberty Capital Group, Inc.
Outfitting a commercial fitness facility, whether a gym, wellness center, or corporate fitness room, is a significant investment. Financing can help spread the cost over time, making it more manageable. Here’s a comprehensive guide to financing fitness equipment:
Understanding Commercial Fitness Equipment Financing
What is Commercial Fitness Equipment Financing?
Financing allows businesses to pay for fitness equipment over time through monthly payments instead of a lump sum upfront. – It typically includes interest, similar to a business loan or lease agreement. If you’re a gym with subscribers, they’ll be paying for the lease payments of your equipment.
Why Consider Financing?
Helps manage cash flow by spreading costs over time. Enables immediate access to necessary fitness equipment without waiting to save the full amount. Often includes tax benefits and promotional offers. Fitness equipment only breaks a lot, they always come up with newer and better fitness equipment. So, you must adapt to the ever changing health and fitness industry.
Types of Financing Options
- Secured loans specifically for purchasing equipment.
- Fixed interest rates and monthly payments.
- The equipment itself often serves as collateral.
- Rent equipment for a set period with the option to buy at the end.
- Lower monthly payments compared to loans.
- Suitable for businesses needing high-end equipment or looking to upgrade regularly.
- Specialized lenders focusing on commercial fitness equipment.
- Competitive rates and tailored repayment plans.
- Often provide financing for both new and used equipment.
- Small Business Administration (SBA) loans can be used for equipment purchases.
- Lower interest rates and longer repayment terms.
- Requires a thorough application process and good credit history.
- Offered directly by fitness equipment manufacturers or distributors.
- Special promotions, lower interest rates, and flexible terms.
- Often includes maintenance and service agreements.
Steps to Finance Commercial Fitness Equipment
Step 1: Assess Your Business Needs
· Determine the type and quantity of equipment required.
· Consider the space, clientele, and specific needs of your facility.
Step 2: Check Your Business Credit Score
· A higher credit score can secure better interest rates.
· Obtain your business credit report and resolve any issues.
Step 3: Compare Financing Options
· Research various lenders and their terms.
· Consider interest rates, repayment terms, and any additional fees.
Step 4: Apply for Financing
· Gather necessary documentation: business ID, proof of income, credit report, business plan, and details of the equipment purchase.
· Complete the application process, which may involve a credit check.
Step 5: Review and Sign Agreement
· Carefully read the financing agreement.
· Ensure you understand the interest rates, repayment schedule, and any penalties for late payments.
Step 6: Purchase and Set Up Equipment
· Once approved, finalize the purchase with the vendor.
· Arrange for delivery and installation, if needed.
Pros and Cons of Financing Commercial Fitness Equipment
Pros:
- Immediate access to necessary fitness equipment.
- Flexible payment plans tailored to business cash flow.
- Potential tax benefits (e.g., Section 179 deduction in the U.S.).
- Helps preserve working capital and credit lines.
Cons:
- Interest and fees can increase the overall cost.
- Monthly payments can impact cash flow.
- Risk of debt if payments are not managed properly.
Tips for Successful Financing Commercial Fitness Equipment.
Budget Wisely:
- Ensure monthly payments fit within your business budget.
- Consider the total cost of ownership, including interest.
Understand Terms:
- Clarify any unclear terms before signing.
- Know the implications of late or missed payments.
Shop Around:
- Compare offers from multiple lenders.
- Look for the best combination of interest rates and terms.
Plan for the Future:
- Consider the lifespan of the equipment.
- Ensure the financing term aligns with the expected use of the equipment.
Leverage Tax Benefits:
- Consult with a tax advisor to understand how to maximize tax deductions and benefits related to equipment financing.
- Section 179 Bonus Depreciation.
Financing Programs Available for Commercial Fitness Equipment
Liberty Capital offers a variety of financing programs to suit different needs, including:
- Lease-to-Own Programs: Allows businesses to eventually own the equipment after fulfilling lease terms.
- EQUIPMENT FINANCE AGREEMENT or EQUIPMENT LOAN: Traditional financing with fixed monthly payments and terms up to several years.
- Working Capital Loans: Short-term loans to cover operational costs or down payments on equipment.
- Seasonal Payment Plans: Customized payment schedules to match the seasonal revenue patterns of your business.
- Term Loans: Term loans allows you to have a predictable loan term to 3-5 years.
- Factoring: Capital upfront from your account receivable to cover operational costs or down payments on equipment.
- Commercial Loan: Including SBA 504, we are a commercial loan broker for 4+ unit commercial property needing commercial loans purchase, refi, ground up funding or condo conversation, bridge loans on commercial property, condos and apartments.
- Merchant Cash Advance: Most for unbankable type of borrowers. Pure based on purchase of future revenue. Revenue based loan. Revenue purchase agreement funding.
- Dollar Buyout Leases: This type of financing ensures that you own your fitness equipment at the end of the term without balloon payment or balloon payoff.
Ask About Our Financing Promotion for the Fitness Industry:
Liberty Capital accommodates clients with to financing options that will yield very little working capital outlay.
Here’s our current promotion to save on cashflow.
- $99 for the first 6 months: Requires only $99 to start
- 90-day Deferred Payments
- $0 Down Equipment Financing
What you get when you finance your commercial fitness equipment with Liberty Capital.
Fast simple online application. No financials up to $250,000. Corp-only (no personal guarantee).
Here are the benefits to financing your next used or used fitness equipment.
- Up to 120% equipment cost
- Up to $5,000,000 with financial statements
- Next-day funding approval
- 12 – 72-month fixed payment terms
- No down payment required for qualified borrowers.
- Lowest Rates in the industry for qualified borrowers
- Eligibility for all new and used equipment financing.
- Will not appear on personal credit reports.
- No pre-payment penalties
- Other off-balance sheet financing – Fair Market Value, 10%
- Lease – $1 buyouts.
- Equipment Finance Agreement (EFA)
Why Liberty Capital Group, Inc.?
Frequently Asked Questions
Can I finance used commercial fitness equipment?
– Yes, many lenders and vendors offer financing for used equipment, though terms may vary.
What happens if I miss a payment?
– Missing a payment can result in late fees, increased interest rates, and damage to your business credit score. Always contact your lender if you anticipate issues.
Is it better to lease or buy?
– Equipment Leasing can be cheaper in the short term and offers flexibility, while buying can be more cost-effective in the long term. Consider your business needs and financial situation.
Can businesses get better financing terms than individuals?
– Often, yes. Businesses may have access to specialized financing options with favorable terms.
How can I improve my chances of getting approved for financing?
– Maintain a good business credit score, prepare a solid business plan, and demonstrate stable cash flow and revenue.
Financing commercial fitness equipment can be a smart way to manage your investment while ensuring your facility remains competitive and fully equipped. By understanding your options and planning carefully, you can outfit your gym or wellness center while maintaining financial stability.
At Liberty Capital Group, Inc., we understand the unique challenges startups face when seeking fitness equipment financing. Our expertise lies in structuring transactions to maximize approval chances.
Here’s how we can help:
- Tailored Solutions: We provide personalized financing solutions based on your specific needs, credit, time in business and commercial fitness industry.
- Expert Guidance: Our team has extensive experience in navigating the complexities of startup financing for fitness equipment.
- Flexible Terms: We work with you to find the most favorable terms possible, considering your credit and business situation when starting a new commercial fitness business.
What do I need to apply?
Ø ONLINE APPLICATION: You can fill out our application, upload and authorized us to process. We do soft-inquiry, and our lender will do hard inquiries once you are approved.
Ø Equipment Invoice or Quote for the equipment you want to buy. Multiple vendors accepted. We’ll lump them into one monthly payment for you.
Ø Banks statements (3-4 months) – Once we have your application, your funding advisor will reach out to discuss the process, timeline, and expectations. We’ll then make an offer and if accepted, we’ll reach out to the vendor for payment instruction. We can pre-fund any vendor up to 100%. We can do used equipment up to 60 months.