Fitness Equipment Financing

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 commercial 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 equipment without waiting to save the full amount. Often includes tax benefits and promotional offers.

 Types of Financing Options

Equipment Financing Loans:

• Secured loans specifically for purchasing equipment.
• Fixed interest rates and monthly payments.
• The equipment itself often serves as collateral.

Fitness Equipment Leasing:

• 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.

Commercial Equipment Financing Companies:

• Specialized lenders focusing on commercial fitness equipment.
• Competitive rates and tailored repayment plans.
• Often provide financing for both new and used equipment.

SBA Loans:

• 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.

Vendor Financing:

• 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 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

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.

While financing comes with its own set of advantages and disadvantages, one thing remains evident: Liberty Capital provides a diverse range of loan programs to assist and navigate you through the funding process and avoid the pitfalls.

Financing Programs Available

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.

Ask About Our Financing Promotion:

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 next boom truck 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 Flatbed trucks.

• 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

Why Liberty Capital Group, Inc.?

At Liberty Capital Group, Inc., we understand the unique challenges startups face when seeking 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 and industry.
• Expert Guidance: Our team has extensive experience in navigating the complexities of startup financing.
• Flexible Terms: We work with you to find the most favorable terms possible, considering your credit and business situation.