How to Finance Gym Equipment
- Home gym equipment financing options include personal loans, credit cards and “buy now, pay later” plans.
- To start a gym as a business, you can also use loans or lines of credit, but it’s more difficult if you’re not already operating.
- If you can, paying for equipment outright with cash is usually the best option.
They don’t call it “investing in your health” for nothing. Whether you’re building a home gym or starting a business, those fitness machines are expensive, and you may need gym equipment financing.
To finance gym equipment for your home, you might go with a personal loan, a payment plan or a 0% APR credit card.
To start a fitness center business, meanwhile, gym equipment finance options could include a small business loan or line of credit.
How to finance a home gym
Having a home gym is very convenient and could help you stick to your workout plan. In fact, it might actually pay for itself, given the sky-high membership costs at some public gyms.
But even a basic gym can cost a lot. This is where the following gym equipment financing options come in.
Personal loan
With an unsecured personal loan, you can borrow enough for even a $100,000 dream gym.
But because there’s no collateral (unlike with a mortgage or auto loan), personal loans tend to have stricter requirements and higher interest rates than some other gym equipment finance options.
Personal loans can be a good choice if you have good credit, since you’re more likely to get a competitive interest rate. (You can check your credit score for free, and also try out our personal loan calculator to see how much you’ll pay over time.)
If you choose to go with a personal loan, be sure to shop around — a study shows comparison shopping saved some borrowers thousands of dollars. You can browse LendingTree’s best personal loan picks, as well as check with your own bank or credit union, which might offer favorable terms for existing customers.
Buy now, pay later
Another way to finance gym purchases is to use a payment plan. You might go with a buy now, pay later (BNPL) app, or depending on where you buy your equipment, with an in-store BNPL-style payment plan.
These both usually have much easier credit requirements than with a personal loan. They often have you repay the money in four payments — though other plans are available — and they sometimes charge fees instead of interest.
Just make sure you don’t forget about the “pay later” part. A LendingTree survey of BNPL users found about one-third had made at least one late payment, which may trigger a hidden fee.
0% APR or low-interest credit card
When used wisely, credit cards can be a reasonable financing option, especially if you can find a 0% APR offer and repay the money before the no-interest period ends (sometimes as long as 21 months).
Of course, the danger is that you’ll still have a balance when the 0% interest ends, probably resulting in a higher rate on the remaining balance than with a personal loan.
But if you feel confident about repayment, this could be a good choice to finance gym equipment. You might even find a 0% offer on a rewards credit card, offering extra perks.
Cash or savings
The one way to make sure you don’t pay interest on your fitness equipment (and don’t break the bank with machines you can’t really afford) is to use your savings.
A big advantage is not having to worry about monthly payments. And if you don’t have that much cash on hand, consider slightly used gym equipment, which you may be able to find on Craigslist, Facebook Marketplace or a used equipment reseller in your area.
How to finance a business gym
If you’re starting a business, then getting gym equipment financing may be tougher than if you already have something running and can use your business’s credit to add new items and replace old ones.
While some of the options below are more suited for existing businesses, they’re not out of reach if you’re starting from scratch.
Small business loan
Small business loans are usually easier to get once you’ve got your gym up and running. Some lenders may require a minimum annual revenue or time in business.
Just like with any other kind of credit, you should shop around for your small business loan.
Be sure to consider SBA 7(a) loans, which are private loans with federal government backing. They tend to offer competitive rates and can be a solid option for established businesses looking for a long-term loan. But if your company is new, you might need to look elsewhere because many SBA lenders require you to be in business for a minimum length of time.
Business line of credit
Another way to finance gym equipment is with a business line of credit. It works a lot like a credit card, letting you borrow up to a certain limit and then repay it to free up more credit.
Business lines of credit can run from $2,000 to $250,000 or more, depending on the lender and your business’s credit. But they are mainly for existing companies, and many lenders have a required minimum time in business, which may be as long as 24 months.
Other gym equipment finance options for a business
- Personal loan: If you don’t yet have any business credit, you could take out a personal loan instead. But be aware that it could impact your personal credit score.
- Business credit card: A business credit card is basically a business line of credit linked to an actual card. It works just like the plastic already in your pocket, except that you’ll need business credentials to apply.
- Cash or savings: Just as with a home gym, paying for equipment in cash can often be the best option. Starting your business debt-free can lay the foundation for a bright (and fit) future.
Frequently asked questions
If you buy a used treadmill or weight machine on Craigslist, you might pay less than a hundred dollars, but new, state-of-the-art equipment can cost thousands for each piece.
Exercise.com estimates the cost of a home-based personal training gym could start at $5,000, while Gymdesk says opening a fitness center business could run up to $400,000 or more.
Leasing gym equipment benefits:
- Less cost up front
- Better access to the latest technology
Owning gym equipment benefits:
- Usually more cost-effective in the long run
- No hassle with bills once the equipment is paid off
Most health insurance policies don’t cover exercise equipment, but if your doctor writes you a “letter of medical necessity,” you might be able to use money from your health savings account (HSA) or flexible spending account (FSA) to buy equipment related to treating your medical condition.
Just like any other business, your profit from owning a gym will depend on many factors, including location, membership cost, available features and even just the general atmosphere. Profit margins can range anywhere from 2% to 15%, according to a blog post by fitness center owner Aneta Niepytalska.
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