Gym equipment finance

So, you’ve made the decision to start a gym, you’ve found the right premises and you’ve sorted your licensing. You now need to work out how you’re going to buy all the gym equipment you need. This guide runs through your financing options to help you make the right decision for you and your business’s equipment needs.

What is gym equipment finance?

Gym equipment finance is simply a way of borrowing the funds you need to purchase gym equipment. This might include cross trainers, treadmills, exercise bikes, weight sets and so on.

Gym equipment finance can enable you to spread the cost of your purchases over several months. This can be invaluable for most businesses that won’t have the cash to pay for expensive gym equipment upfront. 

Why finance gym equipment?

As well as choosing to finance gym equipment because you’re setting up your own business, you might also want to look into it as a vendor or supplier.  

As a gym

If you’re setting up your own gym business, it’s unlikely you’ll have the cash to hand to pay for all the new gym equipment you’ll need. In which case, you might be looking into borrowing money to help you cover the costs. Gym equipment finance can help you do just that. 

Gym equipment finance can also help you if your gym has been up and running for a number of years. It can help you to expand and buy new equipment or even replace old, tired equipment with the latest models. 

As a vendor

You might also want to look into gym equipment finance as a vendor. If you manufacture or sell gym equipment, gym equipment finance could provide a more affordable way for customers to buy equipment from you. 

As a supplier

Similarly, if you’re a supplier of gym equipment, you might want to offer gym equipment finance to your customers to enable them to spread the cost of their purchases. Many businesses already do this, so if you want to keep up with the competition and potentially attract more custom, it’s an option worth considering. 

Is lease purchase or finance right for my business?

That depends. Leasing enables you to rent equipment from a provider and you then pay fixed instalments to the provider over a set term. This can help ensure your payments are affordable and, as payments are fixed, you can budget your cash flow more effectively. An added bonus is that many lease agreements also include maintenance costs. 

At the end of the term, you might be able to extend the lease, return the equipment, upgrade it, or buy it outright by making a balloon payment. This could make it a good option if you want to upgrade to more modern equipment every few years. 

All lease payments are treated as an allowable business expense which means they attract tax relief during the term of the lease. Your accountant can help you with this. 

On the other hand, if you choose to go down the financing route, you’ll simply pay for the equipment over a series of instalments and at the end of the term, you’ll own the equipment outright. Usually, you’ll borrow the money through a business loan and repay it in fixed monthly instalments over a set term, and interest might be added. Once you’ve completed all your repayments, the equipment is yours. 

It’s best to weigh up the pros and cons of both options, considering whether you want to own the item at the end of the term, or whether you’d prefer to have the option of ending the contract or upgrading your equipment, as well as how much each option will cost you. 

How does gym equipment finance work?

Generally, gym equipment finance enables you to spread the cost of gym equipment over several months. 

Many retailers and suppliers will offer their own finance schemes which let you borrow interest-free over a period of around six months to two years. However, they will often require you to spend over a certain amount, say $500, and you might need to put down a deposit first. This could be up to 50% of the item’s value. You can often choose from a range of repayment options to ensure your monthly repayments are manageable. 

Be aware that in some cases, interest will be charged, so always check the terms and conditions carefully before signing up to anything. If you are charged interest, choosing a longer repayment term will lower your repayments but it will also increase the amount of interest you pay overall. 

You should also check whether there are any early repayment fees if you want to pay back the money earlier, and be aware that you will usually need a good credit record to qualify.

When comparing what’s on offer, you might come across the terms ‘0% finance’ or ‘pay monthly’. You might also spot the term ‘buy now pay later’ (BNPL). These BNPL plans have become increasingly popular as they also enable you to spread payments interest-free over a number of months – this might be 6, 12, 24 or 36 months, but it depends on the provider. 

Whichever financing option you choose, never borrow more than you can afford to repay as missed payments can result in late payment fees and interest, and they can damage your credit rating.

Example gym equipment finance

Here are a couple of examples of how gym equipment finance could work.

0% finance over 12 months

  • Total finance amount = $2,000
  • Deposit of 10% = $200
  • Total amount of credit = $1,800
  • Term = 12 months
  • Representative APR = 0%
  • Interest charged = $0
  • 12 monthly payments of = $150

15.9% APR finance over 24 months

  • Total finance amount = $2,000
  • Deposit of 10% = $200
  • Total amount of credit = $1,800
  • Term = 24 months
  • Representative APR = 15.9%
  • Interest charged = $291.48
  • 24 monthly payments of = $87.15

Get started with Swoop

If you’re not sure how to go about applying for gym equipment finance or which option is best for you, the team at Swoop would be happy to help. We can talk you through the different options and help you find the ideal lender for your business. Get in touch today.


Written by

Rachel Wait

Rachel has been writing about finance and consumer affairs for over a decade, helping people to get to grips with their finances and cut through the jargon. She's written for a range of websites and national newspapers including MoneySuperMarket, Money to the Masses, Forbes UK, and Mail on Sunday. Rachel has covered almost every financial topic, from car insurance and credit cards, to business bank accounts and mortgages.

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