If you’re an entrepreneurial-minded person, you may have wondered in the past few years what the best way to get into the fitness industry is. With the emergence of the CrossFit community lifestyle and the cultural importance on wellness in the past decade, the fitness industry has boomed. Entrepreneurs and “fitties” (a nickname playing off of the popular “foodies” for food enthusiasts) alike may be interested in which small business loan they should use to get their piece of the fitness center pie.
Understanding Different Funding Options
There are several different funding options to choose from. The best small business financing for one gym owner might not be best for another. Your choices range from loan types, to lines of credit, to cash advances. Some of the main differences between these three avenues of funding are what you can use the funding for – whether brick and mortar locations, equipment, or simply starting capital. They also differ in their interest rates, their qualifications, and their timeframes for payback. While there are benefits to each of these methods, the application process for an SBA loan is of particular interest.
Getting an SBA Loan
In the US, the Small Business Administration (SBA) offers excellent funding options to small business owners, including those business owners looking into opening their own fitness center. There are two key small business loan types available from the SBA. One of these loans, called 7(a), is popular because the SBA will back three quarters of the loan, leaving the lenders with only a quarter of the risk associated with the loan.
This type of loan is acquired by first identifying a good lender, one that offers SBA 7(a) or similar loans. Then, when setting up the loan, you will be assured that the SBA’s stringent requirements will be enforced and the lender has experience funding this type of venture. You can find many lenders online or by talking with your local banker to identify someone who has experience with SBA and its loan types.
The results of this process – applying for and receiving a small business loan – can mean the realization of a “fitties’” dream or a booming return on investment for a savvy business man or woman. The fitness revolution is here to stay for the foreseeable future. With the right funding options, you can help others live their healthiest lives while creating a nice income for yourself.