The beginning of a new year can get extremely busy for various industries. Among the first that come to mind are fitness centers, due to the countless people looking to start the new year with a new physique. Such individuals are so great in number that the opportunity to gain their business and turn them into loyal members simply cannot be ignored. You have two choices: You can invest in the appropriate tools and strategies now or get caught off guard by a sudden influx of customer activity. But either way, companies like United Capital Source can provide funding for these resources while being sensitive to the unique cash flow cycle of gyms.
It’s time to put yourself in the shoes of your members and think about what they’d like to see. Here are three reasons to consider small business loans for your fitness center as you ring in the new year:
The goal of every gym is for members to view their business as a place of joy and peace. This is where you relieve stress and forget about the inconveniences of everyday life. So, the last thing you want is to give members a reason to be annoyed during a workout. An unfortunately common example is broken or outdated equipment. Yes, gym members are notorious for not treating gym equipment with care. But this is inevitable, even in the most upscale neighborhoods. It’s the business’s responsibility to purchase new equipment once the old equipment begins to affect customer experience.
Most fitness centers are aware of this responsibility and are capable of fulfilling it with their own funds. But they tend to wait too long to purchase the new equipment and/or underestimate how much time it actually takes for the equipment to arrive. Business loans designed for fitness centers allow you place orders the moment they become necessary, regardless of whether you are in a busy period or a lean period. Most of the programs offered by United Capital Source do not require perfect cash flow or personal credit. And since the new equipment is meant to maintain revenue rather than increase it, we likely will not expect you to make significant payments until revenue has stabilized.
The new year acts as a motivator for gym members. They want to feel like new people starting a new chapter of their lives. You can capitalize on this widespread desire by changing your gym’s general appearance (physical and online). At United Capital Source, we’ve worked with gyms looking to make big changes like expanding their space as well as those looking to make smaller changes like adding new flooring or buying a series of flat screen TVs. These are the things potential customers will notice as they peruse different fitness centers in the area.
For significant renovations, we might recommend a traditional business term loan. You’d have access to a higher borrowing limit, and monthly payments would be on the lower side. This makes sense because the renovations likely would not impact revenue right away, and are instead viewed as more of a long term investment. Fitness centers with smaller aspirations might be better suited with a working capital loan, which can cover monthly business expenses after spending enough of your own money to dig into operational funding. Unlike banks and other online business lenders, we are not reluctant to approve smaller amounts, nor do we restrict such amounts to just one or two programs.
While you might not have to look far and wide for speedy approvals and competitive interest rates, fitness centers might have a difficult time finding terms that accommodate their cash flow cycle. Most gyms earn the majority (if not all) of their revenue from monthly memberships. Weeks could go by with very little revenue flowing in until the end of the month, when there is a massive influx of cash. This inhibits the gym’s ability to save money, especially for growth-related investments. Seasonality is a major factor in financing decisions as well. The start of the new year is one of the fitness industry’s two busy seasons. Companies like United Capital Source have developed business funding programs that take both factors into account and use them to the borrower’s advantage.
We also specialize in creating new channels of daily revenue. A popular example is the addition of a smoothie bar, vending machine, or retail items like water bottles. These are long-term investments with a moderate-sized cost, making them perfect for a merchant cash advance or revenue based business loan. Both programs feature terms that let you pay off the debt as daily revenue increases, even if this takes several months.
The final (and arguably most important) reason for gyms to consider business loans at this specific time is the current state of the fitness industry. Fitness is a legitimate trend these days, with all sorts of boutique studios popping up across the country. An increasing amount of business lenders are therefore more willing to approve business loans for smaller gyms with a promising mission. Pursuing business funding now shows that you understand the opportunity standing before you. Don’t wait until the competition is so heavy that you need more cash than you know how to manage.
The post 3 Reasons Your Fitness Center Could Use A Small Business Loan This Year appeared first on United Capital Source.