A fitness franchise offers one of the best business options for aspiring small business owners, from the flexibility it provides to the support of investing in an already established business. However, even with these advantages, it can prove challenging to get into, given the capital costs that it comes with. If you are looking for ways to finance your fitness center, here are some business funding options to consider getting.
SBA loans are some of the most common funding options that will allow you to get started on your fitness franchise. With their operations relying on the US Small Business Administration and a partnership from individual lending partners, SBA loans often guarantee part of their business funding, helping you get financing at a lower rate.
Family and Friends
Family and friends are other sources of funding that you can consider looking into. For this option, finances can be advanced in the form of a loan or investments through partnerships. For the best accountability, ensure you draft contracts detailing your repayment terms and any revenue shares from your business.
Numerous franchisors offer their franchise partners business funding with tailor-made solutions that look at the specific needs of businesses. These will often include the purchase of fitness equipment or funding for advertisement or start-up fees.
Another way of getting business financing is through alternative lenders. Generally, this type of financing comes with a fast approval process and offers various financing options. Some of these include term loans, equipment financing, and business lines of credit.
Commercial Bank Loans
Commercial bank loans are a traditional form of business funding that comes with a fixed sum of cash, interest rates, and agreed upon repayments, often in the form of monthly installments. Your preferred bank will first look into your credit history and your fitness franchise plan to determine your creditworthiness before any approval is made.
Last is crowdfunding, which comes in handy when the other options fall out of your reach. All you need to do is set up your page or partner with organizations that provide crowdfunding solutions for franchises.
Depending on your fitness franchise needs, the above business funding solutions prove that you can get financing suited to your business. Contact New Horizon Capital Funding today to get your preferred financing solution.