5 Sources Where You Can Get a Gym and Fitness Business Loan in the US
For anybody looking to set up a training studio, a gym, or a fitness center, funding can be a huge challenge, and getting finance is not an easy task.
However, there are various sources for funding or obtaining a business loan in the United states. You can also check Collected.Reviews to find opinions on the best loan options for businesses.
Asides from business loans, you can obtain funding from your friends and family or your savings. The only issue with this is that usually, the amount of money you can pool together from this might not be enough to bring your business plan to reality, and that’s why a lot of people opt for business loans instead.
Here are five sources where you can get a gym and fitness business funding in the US
1. Banks
Banks are traditional financing institutions that give loans to businesses and startups on interest only if you meet expected requirements. However, to get a bank loan, you’ll need to provide a detailed account of your business plan, gym registration documents, and other identification documents. Banks are stable methods of financing as their interest rates remain the same throughout.
2. Angel Investors
Angel investors are successful business people who have a high net worth and invest a percentage of their total personal earnings in startups. Angel investors encourage and support promising entrepreneurs and their businesses. They can help fund your business, but in exchange for their investment, part of the business equity belongs to them. Examples of famous angel investors include Jeff Bezos and Marissa Mayer.
3. Micro Financiers
Since getting bank loans are quite tedious and challenging, people prefer to get funding from micro financiers that lend to startups and small business owners who have no means of funding and find it hard to get a bank loan. Although easier than getting loans from banks, there are still some set of criteria you need to meet.
4. Corporate Incubators and Accelerators
Like angel investors, corporate incubators and accelerators provide financial support for business startups. The best thing about corporate incubators is that they not only offer to fund but also help you get the right equipment, help you create your business plan and talent to set up your business to help your business grow in the fastest way possible. In return, they get a share in the profits made or equity.
5. Venture Capitalists
Venture capitalists don’t exactly offer loans, they are investors that act like companies, and they act similarly to angel investors and are focused on the returns of every investment made.
The above sources of funding will help people who don’t have enough funding, enough equipment, and are looking to expand their business. Financial institutions like banks and microfinanciers give financial assistance based on some required criteria and require interest, while investors like angel investors, corporate incubators and accelerators, and venture capitalists get to own a share of your business.