How to Get the Right Business Loan for Building a Stronger Gym

The fitness sector is on a roll. More consumers are prioritizing their health, boutique studios are launching everywhere, and training is shifting from traditional methods to tech-driven experiences. But one thing remains constant—running a successful gym requires capital.

Opening a gym has never been easy, and maintaining one is even harder. Gym owners must juggle expenses like equipment, facility costs, staffing, marketing, and unexpected repairs. Fortunately, business loans exist to help. Whether you’re looking to expand, upgrade, or simply stay afloat, the right financing can make all the difference.

Let’s break down everything you need to know about gym business loans, from available options to qualification requirements and how to use financing to grow your fitness business.

Kinds of Loans for Gyms

Gym loans vary based on purpose, repayment terms, and cost. Choosing the wrong one can lead to unnecessary debt, so here’s a breakdown of the most commonly used options:

1. Equipment Financing: Buy New Gym Equipment With Ease

Purchasing or leasing gym equipment is one of the largest expenses in operating a fitness center. A single commercial-grade treadmill can cost over $5,000, and fully equipping a gym can easily exceed $100,000. Equipment financing allows businesses to lease or buy equipment without having to pay the full cost upfront.

Why this is a great option:

• The equipment itself serves as collateral, making it easier to qualify.
• Frees up cash flow for other important business investments.
• Possible tax benefits through depreciation deductions.

Downside:

• If you default on your loan, the lender takes the equipment.

2. Working Capital Loans: Keeping the Business Running

Working capital loans cover day-to-day expenses such as rent, payroll, utilities, and marketing. These loans are particularly useful for gyms that experience seasonal revenue fluctuations.

Why this is a great option:

• Fast access to cash for routine expenses.
• Usually doesn’t require collateral.

Downside:

• Short-term nature means higher interest rates.

3. SBA Loans: Low-Interest Loans for Long-Term Growth

The Small Business Administration (SBA) offers government-backed financing through SBA 7(a) and SBA 504 loans. These loans come with low interest rates and long repayment terms, making them ideal for purchasing property, renovating a facility, or expanding a gym.

Why this is a great option:

• Low interest rates and long repayment terms.
• Can be used for a variety of business needs.

Downside:

• Lengthy application process.
• Requires strong credit and financials.

4. Business Line of Credit: Flexible Borrowing for Unexpected Costs

A business line of credit functions like a credit card, allowing you to borrow up to a set limit and only pay interest on the amount used. It’s an excellent option for handling unexpected repairs, equipment breakdowns, or marketing campaigns.

Why this is a great option:

• Flexible and reusable.
• Interest only accrues on what you borrow.

Downside:

• Can be expensive if used irresponsibly.

5. Term Loans: Structured Financing for Major Investments

A term loan is a lump sum loan repaid in fixed installments over time. These loans are best for large, one-time investments such as facility renovations, purchasing a new location, or expanding to multiple locations.

Why this is a great option:

• Predictable monthly payments.
• Can be used for nearly any business expense.

Downside:

• Longer approval process and stricter requirements.

6. Merchant Cash Advance (MCA): Quick Cash, But Comes With Strings Attached

A merchant cash advance (MCA) isn’t technically a loan—it’s an advance against future credit card sales. The lender takes a percentage of daily sales until the debt is repaid. While it’s a quick solution, MCAs come with sky-high interest rates and should only be used as a last resort.

Why this is a great option:

• No fixed monthly payments—repay as you earn.
• Approval is based on sales volume, not credit score.

Downside:

• Extremely expensive.
• Can drain cash flow and put financial strain on the business.

Qualifying for a Loan as a Gym Owner

Lenders consider several factors before approving a gym loan. To improve your chances of securing financing:

• Know your credit score – A score above 650 improves your odds of getting a good loan.
• Show strong financials – Lenders want to see solid revenue and profitability.
• Have a business plan – Especially for new gyms, a detailed plan shows lenders your vision and strategy.
• Gather documents – Expect to provide tax returns, bank statements, and financial reports.

How Gym Owners Can Use Loans for Growth

The right business loan isn’t just about survival—it’s about scaling your business strategically. Smart gym owners use financing to:

• Expand to a larger location or open additional gyms.
• Invest in high-quality equipment to attract more members.
• Hire top trainers and staff to improve customer experience.
• Boost marketing efforts to increase memberships and retain clients.
• Offer new fitness programs like HIIT, yoga, or personal training.

Final Thoughts: Finance a Gym Effectively and Build a Stronger Business

Running a gym takes more than just passion—it’s a business. The right financing can mean the difference between a struggling fitness center and a thriving, profitable gym. From SBA loans to equipment financing, business lines of credit, and working capital loans, there’s a perfect funding option for every gym owner.

The key? Choosing wisely. Compare lenders, understand the terms, and ensure the financing aligns with your long-term business goals.

Looking to fund your gym’s growth? Get a business loan today and take your fitness business to the next level.