A fitness loan is used to help a business needing to purchase fitness equipment. Fitness equipment such as exercise mats, elliptical bikes, spinners and weight sets are commonly found in fitness centers and gyms. The funds provided through a fitness loan helps meet the costs of the purchase of fitness equipment that is necessary for the business to operate.
Fitness Loan Lenders
The loans made to a fitness company in need of a fitness equipment can be accomplished through a bank, private lender or government agency that provides loans to small businesses. The loan is specifically tailored to provide the funding for the purchase of the different types of fitness equipment needed by the business. The terms and conditions of a fitness loan agreement are set between the borrower and the lender, which expresses the way in which the proceeds are used for the purchase of fitness equipment.
Length of a Fitness Loan
The terms of a fitness loan can be for a short-term of 1 to 2 years or long-term of several years. The length of the loan depends on the funding needs of the fitness business. The other factor that determines the length of a fitness loan is the amount of time any fitness equipment will be used. The useable life, or period in which the fitness equipment will be used dictates the specific terms and conditions of the equipment loan.
Loan Interest Rates for Fitness Equipment
The fitness loan business with good credit rating qualifies for the best loan interest rates, which may be 1 to 1-1/2 points above the prime lending rate. A borrower with bad credit will receive a more expensive loan to account for the risk of loan default.
Some important items to know to finance your are:
- How much money do you really need?
- Do you know your exact FICO scores?
- How do you plan to repay the loan?
- Who is going to borrow the money? You personally or another legal entity?
- What assets can you pledge to secure your loan?
Make sure you know you are pre-qualified before you apply. Our free business capital search engine will allow you to see the funding programs and lenders that are available to you and then you choose those you wish to apply for.