The Gym Funding Playbook

The Gym Funding Playbook

Term loan 

Similar to traditional bank style financing. A Term Loan is a set amount that a borrower pays back at a fixed amount. The common uses for these types of loans are business expansion, working capital and equipment purchases.

Benefits of a Term loan 

  1. Interest on loan is tax deductible
  2. No prepayment penalties
  3. Lower cost options
  4. Stable daily, weekly monthly payments
  5. Reported to the credit bureaus which can improve credit
  6. Flexible options

Qualifications

6+ Months Time in Business

$120,000 Annual Gross Sales

No Minimum FICO

Loan Amounts: $10,000 – $5 Million

Terms: 6 Months – 10 Years

Funding: 1-3 Days

SBA Loan

An SBA loan is a government backed loan that can be used for starting or expanding a business. The loan has certain requirements for eligibility, such as size standards, providing the ability to repay and a solid business purpose.

Benefits of a SBA Loan 

  1. Fixed and variable options
  2. Monthly payments
  3. Terms up to 25 years
  4. Prime rates
  5. Government backed

Qualifications 

$120,000 Gross Annual Sales

3 Years Time in Business

No Loss on Previous 2 Years Tax Returns

Financials Required

Loan Amounts:

Up to $5 Million Terms:

Up to 25 Years

Funding: 90-120 Days

Business line of credit

A business line of credit provides flexibility for the business owner. Rather than a fixed amount issued at one time, funds can be accessed as needs arise. Funds are made available again, as the balance is paid down.

Benefits of a Business Line of credit 

  1. Only pay interest on the funds drawn
  2. Credit available as needed
  3. Draw as many time as you need
  4. Fast Approvals

Qualifications 

6 Months Time in Business

$120,000 in Annual Gross Sales

600 FICO

Loan Amounts: $10,000 – $5 Million

Terms: 6 Months – 10 Years

Funding: 1-3 Days

Equipment financing

Businesses utilize equipment financing to purchase business related equipment. Obtaining these assets can be through equipment leasing or equipment financing, which doesn’t require businesses to pay out of pocket large amounts of cash. Ultimately freeing up working capital within the business.

Benefits of a equipment financing 

  1. Monthly payments
  2. Multi-year
  3. Longer Terms
  4. Low or NO down payment
  5. Tax benefits (section179)

Qualifications 

No Minimum FICO

No Minimum Time in Business

No Minimum Revenue

580 FICO

Loan Amounts: $10,000 – $5 Million

Terms: 1-5 Year Terms

Funding: 1-5 Days

Accounts receivable financing

Accounts receivable financing is when a company will sell or finance off their outstanding invoices for working capital. It can either be in the form of selling the asset to the lender or using the accounts receivable (invoices) as collateral for the loan.

Benefits of accounts receivable financing 

  1. Typically lower interest rates
  2. Doesn’t require other collateral
  3. Ability to factor new AR as they become available
  4. Saves time for collecting your receivables
  5. Opens up cashflow

Qualifications 

$500,000 in Annual Gross Sales

600 FICO

Aging Report Required

Loan Amounts: $10,000 – $5 Million

Terms: 6 Months – 10 Year Terms

Funding: 1-5 Days

Franchise financing

Franchise Financing can be used to open a new franchise location or assist with your franchisor mandated updates at a lower cost

Benefits of franchise financing 

Loan Amounts: $10,000 – $5 Million

Terms: 6 Months – 10 Year Terms

Funding: 2-7 Days

Qualifications 

640 FICO

Ability to start a Franchise

Obtain start-up cost assistance

Purchase Equipment

Cover infrastructure costs

Loan Amounts: $10,000 – $5 Million

Terms: 6 Months – 10 Year Terms

Funding: 2-7 Days

Merchant cash advance

A Merchant Cash Advance isn’t technically a loan, but rather a cash advance that is paid back by withdrawing a percentage of your credit sales, typically on a daily basis.

Benefits of Merchant Cash advance 

  1. Fully customizable based on business need
  2. No compounding interest
  3. Funds can be used for any use
  4. Pay back based on the sales of the business

Loan Amounts: $10,000 – $5 Million

Terms:

Flexible Terms Funding:

Same Day Qualifications

6+ Months in Business

$120,000 in Annual Gross Sales No Minimum FICO

Click here to apply or for more details call 214-629-7223 or email for more information.

An Outsourced CEO and expert witness, Jim Thomas is the founder and president of Fitness Management USA Inc., a management consulting, turnaround and brokerage firm specializing in the gym and sports industry. With more than 25 years of experience owning, operating and managing clubs of all sizes, Thomas lectures and delivers seminars, webinars and workshops across the globe on the practical skills required to successfully to overcome obscurity, improve sales, build teamwork and market fitness programs and products. Visit his Web site at: www.fmconsulting.net or www.youtube.com/gymconsultant.

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