A Redwood City, CA gym or studio can put racks, rowers and floor tiles on equipment financing, where the machines back the agreement, and fund freestanding mirrors, sound gear, lockers and benches for a leased studio with a term loan. Whiteside Finance passes the request to funding partners, who read the membership revenue and set any terms.
Movable gym equipment fits equipment financing; freestanding mirrors, sound gear, lockers and benches can fit a term loan. Membership dues are what a funding partner reads. Examples use invented figures.
Racks, rowers and flooring on an equipment loan
An equipment loan is built around things that can be unbolted and carried out: power racks, benches, rowers, bikes, dumbbell sets and the rubber tiles under them. Each item goes on the vendor quote with its own price, so the funding partner can see what secures the equipment financing agreement.
| Item | Quantity | Price |
|---|---|---|
| Power racks | 6 at $3,450 | $20,700 |
| Rowers | 10 at $1,190 | $11,900 |
| Dumbbell set and storage racks | one set | $6,800 |
| Rubber floor tiles | 2,400 sq ft at $4.25 | $10,200 |
| Quote total | $49,600 |
Illustration only, invented figures: with $4,960 down, the gym finances $44,640 at 10.5% a year for 48 months. Each installment is $1,142.93, and in this example the 48 of them total $54,860.64, of which $10,220.64 is interest.
A gym’s payroll keeps running while new equipment is paid off. The 128 establishments under Fitness and Recreational Sports Centers (NAICS 713940) in San Mateo County, CA counted 2,595 paid employees in the 2023 March pay period (CBP), about 20 per establishment (our arithmetic).
Studio furnishings: mirrors, sound gear and lockers
A studio also buys the furnishings that make a leased room ready to train in: freestanding mirror panels, a portable sound system and speakers, lockers, benches and a front desk. A partner may find much of that hard to resell, so a term loan can fit it better than an equipment agreement. Building work, such as mirror walls, ceiling wiring, locker rooms or moving a wall, stays outside this site as property work.
Illustration only, invented figures: a $68,000 furnishing package at 9.9% a year costs $1,441.46 a month over 60 months or $1,125.37 over 84. In this example the longer term frees $316.09 a month and adds $8,043.48 of interest ($26,531.08 against $18,487.60).
An improvement allowance from the landlord, if the lease carries one, pays for work on the space itself, which stays outside this request. The lease says whether there is one and how it is paid.
Membership revenue and how a lender reads it
Dues are what pay the installments, so a lender can read membership revenue closely, from three sources: deposits in the business bank statements, a member-software report of active members and dues, and cancellations over the past year.
- Active members by plan and price
- Monthly cancellations next to new joins
- Class packs and personal training, kept apart from dues
- Prepaid annual plans, which arrive at once but cover twelve months
Illustration only, invented figures: 380 members paying $139 a month bring in $52,820. In this example, if 3% cancel in a month, that is 11 members and $1,529 of dues to replace. In this example the equipment installment and the 60-month furnishing installment together take $2,584.39, about 4.9% of a month’s dues.
ZBP 2023 gives 15 establishments under Fitness and Recreational Sports Centers (NAICS 713940) a ZIP 94063 address.
Where a Redwood City, CA studio owner can apply
A Redwood City, CA studio owner can look in several places: the business’s own bank or credit union, equipment vendors that arrange financing for their machines, online lenders, and a request through Whiteside Finance, which passes it to funding partners. Through Whiteside Finance the steps are:
- Call (650) 336-2048, or start on the request form with contact details and the three ranges it asks for.
- Go over the equipment quote, the furnishing quote and the membership report on the call.
- Whiteside Finance forwards the request, with those papers, to funding partners.
- A partner goes through the file and says whether it will offer, and on what terms.
- The studio compares any offer on its total cost before signing.
Dues that land after rent is due are a timing gap, which a line of credit can cover. The gyms and fitness studios page covers reformers and buying an existing gym, and the blog has other articles.
By Whiteside Finance · Updated
