Gym · Nationwide
A gym's revenue is recurring dues minus cancellations, and lenders underwrite it that way. Count how many paying members it takes to cover each payment before choosing equipment financing, a build-out loan or a line.
Check business eligibilityFunding specialists, not a lender. No approval guarantee.
Updated October 28, 2026
Decision guide
| Item | Figure |
|---|---|
| Monthly payment | About $3,260 |
| Total of payments | About $195,700 |
| Members needed to cover it at $40 net per member a month | About 82 |
| If 4% of members cancel each month | About 3 to 4 new members a month just to hold that level |
Illustrative only, not an offer. Lenders look at retained members, so a low cancellation rate supports a larger request than a big January.
Many states regulate health club contracts, for example cancellation rights and, in some states, bonding for prepaid memberships. Check your state's rules before offering prepaid plans to raise cash.
Ask for written offers for equipment and build-out costs separately and together. Compare the combined payments, fees, total repayment, loan terms and security requirements. Separate financing is not automatically cheaper; choose the structure your retained membership revenue can support.
What a funding specialist adds. Nowbiz sizes gym funding to retained membership revenue and compares equipment, term and line offers on total cost. The provider sets eligibility and terms.
Prepare
Built around the operating cycle
A gym is a recurring-revenue business with a capital-intensive floor. Members pay monthly dues by card on autopay, class packs and personal training add variable revenue, and the equipment on the floor must be refreshed every five to seven years. Cash flow is smoother than most retail, but the surge in January and the attrition in summer are as predictable as the calendar. For a gym in the U.S., the capital plan revolves around the buildout, the equipment cycle and the marketing that fills the January funnel.
Equipment is the most frequent financing need: cardio lines, racks and rigs, plates and dumbbells, functional-training systems, flooring, and the access-control and billing technology that runs memberships. Equipment financing over three to five years matches the useful life and keeps monthly cost proportional to the dues the equipment supports. Buildouts — HVAC, showers, flooring, mirrors and lighting — are a term-loan project, ideally with landlord contributions given how specialised the space becomes.
Recurring billing data is the gym’s advantage. Revenue-based lenders can read the membership platform directly and size an offer on monthly recurring revenue, with repayment that flexes with the season. A line of credit serves the same purpose for gyms with clean statements and stronger credit. What to avoid is a daily-remittance advance drawn against dues that already arrive on a fixed schedule; the mismatch drains cash in the summer months.
Products that fit
| Product | Typical amount | Time to fund | Why it fits a gym |
|---|---|---|---|
| Equipment financing | Provider-specific | Provider-dependent; confirm availability of funds | Cardio, strength and functional equipment plus flooring and access systems financed over three to five years, secured by the equipment and often paid to the vendor. Matches the refresh cycle. |
| Revenue-based financing | Provider-specific | Provider-dependent; confirm availability of funds | Sized on monthly recurring revenue from the membership platform, repaid as a fixed percentage of revenue so the payment falls in the summer dip. Suits gyms with strong autopay data. |
| Business term loan | Provider-specific | Provider-dependent; confirm availability of funds | Fixed payments over one to five years for a buildout, a second location or a major marketing push ahead of January. |
| Business line of credit | Provider-specific | Provider-dependent; confirm availability of funds | A revolving reserve for seasonal dips, repairs and pre-January marketing, drawn as needed and repaid from dues. Best for gyms with a year or more of steady billing. |
| Product | Amount to discuss | Time to fund | Pricing structure | Eligibility review |
|---|---|---|---|---|
| Equipment financing | Provider-specific; size to repayment capacity | Provider-dependent; confirm availability of funds | Loan interest or lease payments; compare deposit, fees and ownership terms | Operating-history requirements vary by provider; Ask which personal and business credit checks apply |
| Revenue-based financing | Provider-specific; size to repayment capacity | Provider-dependent; confirm availability of funds | Contracted repayment cap and fees; check revenue reconciliation terms | Operating-history requirements vary by provider; Ask which personal and business credit checks apply |
| Business term loan | Provider-specific; size to repayment capacity | Provider-dependent; confirm availability of funds | Quoted interest and fees; compare net proceeds and total repayment | Operating-history requirements vary by provider; Ask which personal and business credit checks apply |
| Business line of credit | Provider-specific; size to repayment capacity | Provider-dependent; confirm availability of funds | Interest or installment fees by provider; check draw and maintenance charges | Operating-history requirements vary by provider; Ask which personal and business credit checks apply |
Questions owners ask first
Recurring dues are the strongest part of a gym file. Show active members by month, cancellations and the billing processor statements; a stable base with low churn supports a larger loan than one month of strong sales.
An equipment loan builds ownership; a lease can lower the payment and make it easier to replace machines. Compare the total of payments and the end-of-term buyout before choosing.
Lenders check franchise brands against the SBA Franchise Directory, which lists brands eligible for SBA financing. A listed brand can use a 7(a) loan for the build-out, equipment and working capital.
Do not budget for them. The SBA does not give grants for starting or expanding a business. The best-known fitness grants, from the National Fitness Campaign, go to cities, school districts and universities to build free outdoor Fitness Courts, not to private gyms or studios. Most other fitness grants you see listed are sponsored contests with a handful of winners.
| Item | Figure |
|---|---|
| Monthly payment | About $2,115 |
| Members needed at $39 a month to cover it | About 55 |
Illustrative only, not an offer.
Official sources (checked October 20, 2026): SBA Franchise Directory, U.S. Small Business Administration: 7(a) loans, U.S. Small Business Administration: grants, National Fitness Campaign: grants.
Worked example
Equipment financing at a typical floor-refresh cost for a U.S. gym across the published APR range; revenue-based and term-loan structures are compared beneath at the same amount. Illustrative equipment-financing figures for a typical U.S. gym refresh, with a revenue-based and a term-loan alternative shown below at the same amount. Equipment financing at a typical floor-refresh cost for a U.S. gym across the published APR range, with revenue-based and term-loan structures compared beneath.
Payment estimator
Illustrative equipment financing figures for $80,000 using hypothetical rate assumptions. Your offer depends on underwriting.
$2,053 per month and $123,198 in total payback (18.5% assumed annual interest; 60 months; fees excluded).
Hypothetical figures using the stated term or collection period. Fees are excluded. Revenue-based amounts are averages over an assumed period, not fixed payments.
| Scenario | Estimated payment | Total payback / customer settlement | Basis |
|---|---|---|---|
| Lower scenario input | $1,584 / month | $95,046 | 7.0% assumed annual interest; 60 months; fees excluded |
| Midpoint | $2,053 / month | $123,198 | 18.5% assumed annual interest; 60 months; fees excluded |
| Higher scenario input | $2,588 / month | $155,296 | 30.0% assumed annual interest; 60 months; fees excluded |
| Product | Estimated payment | Total payback / customer settlement | Basis |
|---|---|---|---|
| Revenue-based financing | $8,667 / month (assumed average) | $104,000 | 1.30x; assumed 12 months; actual payments vary with revenue |
| Business term loan | $3,245 / month | $116,805 | 26.5% assumed annual interest; 36 months; fees excluded |
Underwriting
Gym underwriting reads the membership platform: active members, monthly recurring revenue, churn, average revenue per member and the share of revenue on autopay. A gym with rising recurring revenue and manageable churn is easy to size; one whose growth is all January and whose churn erases it by July is treated cautiously. Bank statements confirm the platform data and reveal any existing advances.
Leases are examined closely, because a gym buildout is expensive and specialised; lenders want the term to exceed the financing comfortably. Equipment lenders prefer commercial-grade brands with resale markets and ask for a vendor quote. Insurance, certifications for trainers and any franchise agreement are confirmed as supporting documents.
Industry note: Recurring billing data supports revenue-based products. Seasonality: January sign-ups; summer attrition.
Prepare the file
Avoid these
Equipment lasts five years; an advance is repaid in months from dues that arrive monthly. The mismatch peaks in summer. Equipment financing fits. A five-year equipment cycle on a nine-month product produces a payment the summer months cannot carry. Use equipment financing. A five-year equipment cycle repaid through nine months of daily deductions creates a payment the summer cannot support; use equipment financing.
Recurring revenue in January overstates the year. Lenders average the trailing twelve months; a request built on the peak will be cut. January is not the year. Base the request on trailing twelve-month recurring revenue so the payment survives the summer. January recurring revenue overstates the year; size the request on the trailing twelve months so the payment survives the slow season.
Showers, HVAC and flooring are sunk costs. Extend the lease before financing the buildout, and negotiate landlord contributions for the specialised work. A gym buildout into a short lease is money that cannot be recovered. Secure the lease term first, then finance. Showers, ventilation and flooring cannot be recovered when a short lease ends; extend the lease before financing the build-out.
A payment sized on gross sign-ups fails when churn arrives. Forecast on net member growth and average revenue per member. Sign-ups minus cancellations is the number that pays the loan. Size the payment on net growth. Gross sign-ups are not the number that pays the loan — net member growth after churn is; forecast on that.
Timing
Equipment refresh, buildout, marketing ahead of January, or a second location — each maps to a product and a timeline.
Membership and billing reports, bank statements, the lease, insurance, and vendor quotes for equipment or the buildout budget.
Now Biz Fund identifies which equipment lenders, revenue-based funders and term-loan partners fit a U.S. gym without a hard credit inquiry.
Equipment and term offers return in two to five business days; revenue-based in two to seven. Model the payment through a summer month, not a January one.
Time equipment delivery and marketing for the run-up to January so the investment earns during the surge.
Secure eligibility check
Share the basics about your gym, the amount and the use. Now Biz Fund reviews the file without a hard credit pull and matches it with funding partners active in gym.
Gym questions
Equipment financing over three to five years, secured by the equipment and paid to the vendor. Commercial-grade brands with resale value get the better pricing. Multi-year equipment financing matched to the refresh cycle, with the equipment as collateral; commercial brands with a resale market price best. Equipment financing over three to five years, secured by the equipment and paid to the vendor; commercial brands with resale value attract the better pricing.
Very well, because recurring billing data is exactly what those funders read. Repayment as a share of revenue means the payment falls during the summer dip. Gyms are a natural fit: the funder reads the billing platform, sizes on recurring revenue and takes a percentage that flexes with the season. It works well because recurring billing is exactly what those funders read; repayment as a share of revenue means the payment eases during the summer dip.
Published ranges for gyms run from about $10,000 to $300,000 depending on product, with buildouts and second locations higher on term or SBA loans. Recurring revenue sets the realistic figure. Typically $10,000 to $300,000 across equipment, revenue-based and term products, with larger buildouts on term or SBA loans; monthly recurring revenue drives the number. Somewhere between $10,000 and $300,000 for equipment, revenue-based and term products, with larger build-outs on term or SBA loans; monthly recurring revenue sets the figure.
Not if it is consistent. Lenders expect the January peak and summer dip; they want to see that net membership grows year over year despite it. Predictable seasonality is fine. What lenders look for is year-over-year growth in members and recurring revenue through the cycle. Consistent seasonality is not a problem; what lenders want is year-over-year growth in members and recurring revenue despite the cycle.
Equipment financing and SBA loans are the main routes before a year of billing history; revenue-based products and lines generally want six to twelve months of platform data. Before a year of history the realistic options are equipment financing and SBA; revenue-based and line products want six to twelve months of billing. Before a year of billing history the main routes are equipment financing and SBA; revenue-based products and lines generally want six to twelve months of platform data.
It usually helps: lenders know the franchise systems and their unit economics. The agreement, franchisor approvals and any required equipment packages are reviewed as part of the file. Franchise affiliation generally helps because lenders understand the model; expect the agreement and franchisor requirements to be part of the review. Usually it helps, because lenders know the franchise systems and their unit economics; the agreement, franchisor approvals and any required equipment packages are reviewed with the file.
Yes, with a term loan or SBA loan sized on the existing gym’s cash flow, combined with landlord contributions and equipment financing for the floor. Lease term is critical. A second location is typically a term or SBA loan underwritten on the first gym, plus landlord contributions and separate equipment financing, into a lease that outlasts the debt. With a term or SBA loan underwritten on the existing gym, landlord contributions and separate equipment financing for the floor — and a lease long enough to justify it.
In California and New York, providers must disclose total cost and an annualized rate in a standard format, including for revenue-based products. Elsewhere, request the same numbers so equipment, revenue-based and term offers can be lined up. California and New York mandate a standard cost disclosure; in other states ask for total payback and an annualized rate from every provider. California and New York require a standard disclosure of total cost and an annualized rate, revenue-based products included; elsewhere request the same so equipment, revenue-based and term offers line up.
Equipment financing typically two to five business days; revenue-based two to seven; term loans one to three; SBA thirty to ninety. Delivery lead times on equipment are often the real constraint. From a few days for equipment and term products to a week for revenue-based and one to three months for SBA; equipment lead times often matter more than the approval. Equipment financing typically takes two to five business days, revenue-based two to seven, term loans one to three and SBA thirty to ninety; equipment delivery lead times are often the real constraint.
Local guides
Each local guide covers the same products with the city’s rent, seasonality, anchors and state rules.