While starting your fitness center affords you benefits such as independence and flexibility, investing in such a venture will likely set you back about $800,000, a sum that is no small feat for a small business owner. This cost will be crucial in helping you get the necessary equipment and space for your fitness center, without which you could risk losing out on your enterprise. Fortunately, securing business funding is a feasible solution, with the following guide shedding light on some financing options that you can use.
Friends and Family
The most common source of business funding is friends and family, which generally comes at a low cost. Under this option, financing can be advanced through various avenues, such as inviting your friends and family to join your fitness center as partners, requesting a financial gift, or through a loan. If you choose the last option, make it a point to draw up contract terms, complete with your preferred repayment terms and your share of profits and losses.
Commercial Bank Loans
Commercial bank loans are another alternative source of business funding that you can use, with term loans being the most common option available. Based on your needs, bank loans will provide you with a lump sum of money, which you will be required to repay over a given duration of time. The repayment period comes in monthly installments, with each payment attracting a given interest rate based on your agreed terms.
Alternative Lenders
Alternative lenders are also another solution you can use for business funding, allowing you to benefit from non-traditional financing options. By relying on alternative lenders, you get to benefit from fast loan approval processes while also reducing lengthy document approval processes. Such lenders also offer different financing solutions, with the most common examples being fitness equipment financing, term loans, and business lines of credit.
SBA Loans
SBA loans refer to loans provided by the United States Small Business Administration in conjunction with participating intermediary lenders. Their operation is similar to commercial bank loans. The only difference is that they are partially guaranteed by the SBA, allowing borrowers to enjoy lower interest rates and longer repayment periods.Selecting the right type of business funding should no longer be a hassle. To get a solution aimed at maximizing the growth of your fitness center, reach out to Spearing Capital & Consulting, Inc. today.