Gym business loans for fitness centres and studios

Yes. Gyms and fitness studios commonly fund equipment with asset finance or leasing and pay for fit-outs, marketing or cash flow with an unsecured business loan. Smart Funding Solutions, a whole-of-market commercial finance broker, approaches lenders that understand membership income and seasonality, for new gyms, established clubs, franchises and studios buying or expanding a site.

Finance options for a gym

• Gym equipment finance: hire purchase or leasing for treadmills, racks and resistance kit, secured on the equipment. See gym equipment finance and asset finance.
• Unsecured business loan: for refurbishments, marketing or staff. See unsecured business loans.
• Revenue based or merchant cash advance: for gyms with strong direct debit or card income. See revenue based loans and merchant cash advance.
• Start-up funding: a new gym with no trading record may start with a government-backed Start Up Loan of up to £25,000 at a fixed 7.5% over 1 to 5 years, plus equipment finance. See start up business loans.
• Buying a gym or its premises: acquisition finance or a commercial mortgage.

What lenders look at

• Membership numbers, churn and direct debit income.
• Lease length on the premises, compared with the loan term.
• Bank statements across quieter months, not just January.
• Your experience in fitness, and a business plan for a new site (see how much it costs to open a gym).

Boutique studios, salons and leisure sites can also read leisure business finance, and franchisees franchise loans. To see which lenders fund gyms like yours, use Instant Quotes.

Yes. Saunas, cold plunge tubs, infrared rooms and compression kit can be funded on asset finance, and the plumbing, electrics and building work around them on a business loan or fit-out finance. Smart Funding Solutions, a whole-of-market commercial finance broker, searches lenders that fund leisure equipment and fit-outs and helps you split the costs the way they prefer.

How lenders look at a recovery area

• Whether it pays. The price of a recovery add-on or session pass, and how many members you expect to take it.
• Freestanding or built in. A freestanding sauna cabin or plunge tub can be removed and resold, while a built-in room cannot, which changes whether lenders treat it as equipment or fit-out.
• Your landlord. Consent for new plumbing, drainage and electrical supply, and the time left on the lease.
• Running costs. Energy, water and cleaning built into your forecast.

Can a gym get finance for a refurbishment?

Yes. A refurbishment, from flooring and changing rooms to lighting and air handling, is usually funded with an unsecured business loan or fit-out and refurbishment finance, with any new kit on asset finance alongside. Lenders compare the term with your remaining lease and look at membership numbers before and after similar upgrades if you have them. Check with your council whether any new treatment or service needs a licence before you open it. The British Business Bank sets out how leasing and hire purchase work.

Our article on leasing gym equipment covers the kit side, and leisure and personal services finance covers spas and studios. Instant Quotes shows which lenders on our panel may fund your project, with no credit search.

Sometimes, within limits. Asset finance lenders are happiest funding physical kit they could recover and resell, so software licences, installation, delivery and training, often called soft costs, are usually accepted only as a share of a larger hardware deal or funded separately with a business loan. Smart Funding Solutions searches the market for lenders that will take soft costs on gym projects and tells you upfront how a deal is likely to be split.

Can a gym get finance for access control and a booking app?

Partly. Turnstiles, door entry, CCTV, kiosks and connected cardio machines are hardware that lenders can fund on hire purchase or a lease. Gym management software and member apps are usually paid by monthly subscription, so they sit in your running costs, not in an asset finance agreement. If a supplier bundles hardware and software into one price, ask for an itemised quote so the lender can see what it is funding.

Questions to ask before you sign

• Exactly what the agreement covers, from hardware to installation and licences.
• What happens to the software if you end the subscription but are still paying for the hardware.
• Whether an operating lease with upgrades suits kit that dates quickly, or hire purchase suits kit you will keep.
• The total amount payable over the term, not just the monthly figure.

The British Business Bank's guide to asset finance explains the main types. See also soft asset finance and IT equipment finance, and use Instant Quotes to see which lenders on our panel may suit, with no credit search.

Gyms typically see a surge in sign-ups in January and again before summer, with quieter spells in between. Membership churn, freeze requests and the cost of refreshing equipment all affect cash flow. Plan borrowing so repayments sit comfortably within your quietest months, not your busiest. Keeping a close eye on membership numbers, churn and average revenue per member also gives lenders confidence.

Sometimes. Equipment finance is secured on the equipment, and some lenders focus on recurring income or card takings rather than past credit problems. Options will be narrower and costs higher, so be upfront about your history.

Before borrowing, most new gym owners want to know the total they are funding. Sage estimates that starting a gym in the UK typically needs around £75,000 to £120,000 upfront, and describes this as a guideline average rather than a quote (Sage). Premises, fit-out, equipment and launch marketing are the largest items, and lenders will want to see three to six months of running costs covered as well. Our guide to how much it costs to open a gym in the UK breaks the estimates down and shows which finance fits each part.