A major hardship of running a gym or fitness center is transparency. Most of your struggles are front and center for all members to see. No, your members don’t have access to your bank account. But they can certainly tell when you don’t have the money to fix a recurring problem or maintain relevancy in a changing market. So, whatever issue caused one member to leave will probably cause many others to do the same. New gyms and boutique studios are popping up every day, largely thanks to the continuous mistakes of their competitors. One of these mistakes is dismissing small business loans, especially those that are specifically tailored for the cash flow cycles of gyms.
Unlike banks, companies like United Capital Source can work with virtually any industry, and not just because we offer so many different types of small business loans. We expand clientele by communicating the urgency of certain problems that could be easily fixed with our help. It’s safe to say that gyms would be more inclined to pursue business funding if they knew the real risk of ignoring certain flaws.
Members Will Notice Your Financial Hesitance
Gyms are the quintessential example of a business that needs to fix problems right away. Broken or outdated equipment is an inevitability for them. And yet the last time you went to your gym, you probably noticed at least one exercise machine with an “out of order” sign taped to it. Or another machine that looks like it was released well over 10 years ago. Small workout tools, like grips, might be coming apart or missing. Members complain but nothing happens, and the reason is clear: The gym doesn’t have the money to buy new equipment or make the necessary repairs. And even if the gym was eligible for approval for a bank loan, the approval process could take several months. Equipment needs to be fixed or replaced immediately.
Situations like this are why gyms that truly care about their reputations choose United Capital Source over their banks. We can approve and distribute various types of small business loans for gyms in a few business days, and our application requires just a few financial documents. Speedy approval is crucial because the longer a problem goes unresolved, the more damage it does to your finances as well as your general image. Members will take their business elsewhere if they notice an increasing amount of broken or outdated machines. Gyms are one of many businesses with elongated business cycles. They get paid monthly, which makes it difficult to cover large expenses at any given moment or accommodate the the fixed, monthly payments associated with traditional term loans. United Capital Source, however, has years of experience working around both dilemmas.
It’s All About Those Summer Months
We understand that new equipment does not always impact revenue right away. It might not even increase revenue at all, since some pieces of equipment are simply required for keeping the business up and running as usual. This is why we often allow borrowers to make their most significant repayments when it is most convenient for their finances. Gyms, for example, typically experience increases in membership and revenue when the weather gets warmer. The summer is their “busy season.” They might offer new classes or membership discounts. But you cannot expect a strong performance without extensive preparation. This could mean buying new equipment, long-term marketing campaigns, or the hiring of new trainers/instructors.
A gym’s cash flow might not be entirely stable in the months leading into the busy season. But perfect cash flow isn’t required for some types of small business loans, like short-term working capital loans or a business line of credit. You could receive funding when business is relatively slow but pay off the majority of the debt when revenue increases during the summer. In the case of new equipment, you may be able to make smaller and larger payments based on the amount of revenue your gym takes in month-to-month. A slow upcoming month does not have to prevent you from making vital purchases.
Your Cash Flow Is Not Untreatable
For many gyms, the problems that are holding them back aren’t as small as a few broken pieces of equipment or a low marketing budget. They need a massive overhaul. We will likely be able to help you by scheduling out the work in phases. You can finance each phase separately, borrowing less and less money along the way. This strategy is generally more cost-effective than taking out one business loan, since you won’t need all the money now.
If you are giving your appearance a massive overhaul, there’s a good chance your finances deserve the same treatment. We can make this happen; all you need to do is review it with us. When you work with UCS, you begin a partnership with a business funding expert who is more than happy to help you along the way. You will learn how to sustain your new and improved business with the right budget and be more sensible with expenses. All the improvements in the world won’t mean a thing if the business is spending more money than it should.