A gym in Delaware, OH that needs a loan for more racks, turf and a bigger lease can split the cost two ways: equipment financing for the racks and weights, and a term loan for rubber floor tiles, turf and the lease deposit. A credit line can carry the months before new members cover the higher rent. One call or one request form starts all three, and funding partners make the decision.
A worked gym expansion in Delaware, OH: a budget, an equipment loan plus a term loan, the members needed to cover the new monthly costs, and the billing and churn records a funder can review.
More racks, turf and rubber floor: pricing the expansion
Price every line before asking for money. A gym moving into a bigger space buys gear that keeps its value as equipment, plus floor tiles and a deposit that do not. Splitting the list that way decides which loan fits which cost.
| Item | Detail | Cost |
|---|---|---|
| Power racks with platforms | 6 at $3,450 | $20,700 |
| Barbells, plates and dumbbells | One order | $14,800 |
| Sled turf lane | Laid indoors | $9,600 |
| Rubber floor | 3,200 sq ft at $4.25 | $13,600 |
| Mirrors and a sound system | Installed | $5,900 |
| Deposit on the larger lease | Paid to the landlord | $11,400 |
| Total | $76,000 |
In this example the gear comes to $35,500, the floor, turf, mirrors and sound to $29,100, and the deposit to $11,400. Quotes from the rack maker and the flooring supplier belong in the file, because a partner can compare each line with the quote behind it.
Fitness and recreational sports centers (NAICS 713940) in Delaware County, OH numbered 43 employer establishments in 2023 with 681 paid employees between them, about 15.8 per location by our arithmetic, and 27.9% had fewer than five employees (County Business Patterns). Gyms of that size carry payroll for trainers and front-desk shifts, so an expansion plan has to fit next to wages that do not pause while the new room fills.
Equipment loan for the gear, term loan for the larger lease
An equipment loan suits the racks, bars and plates: the gear itself can secure the loan, and the term can follow how long the gear stays in use. A term loan suits the work that has no resale value, such as the rubber floor, the turf lane and the deposit, because those costs cannot secure a loan the way a rack can.
| Loan | What it covers | Amount | Months | Annual rate | Monthly payment | All payments |
|---|---|---|---|---|---|---|
| Equipment loan | Racks, bars, plates | $35,500 | 48 | 10.5% | $908.92 | $43,628.16 |
| Term loan | Floor, turf, mirrors, sound, deposit | $40,500 | 36 | 12.25% | $1,350.02 | $48,600.72 |
In this example the two payments add to $2,258.94 a month: $908.92 on the equipment loan and $1,350.02 on the term loan. In this example, over the full terms, the gym pays $8,128.16 and $8,100.72 in interest on the two loans. The lease itself stays an agreement with the landlord: a building purchase is property finance, which this site does not arrange.
The gym and fitness studio funding page lists the other machines and furnishings owners in Delaware, OH price, from cardio rows to locker benches.
Membership growth vs new monthly payments
The new space costs more each month than the two loans. In this example rent rises from $6,800 to $10,600, so the gym adds $3,800 of rent to $2,258.94 in loan payments, $6,058.94 a month in all. At $64 a month in dues, it takes 95 more paying members to cover that, before any extra trainer shifts.
Members do not arrive all at once. With 31 sign-ups and 19 cancellations a month, the gym adds 12 members net, so the ramp runs 8 months:
| Month | Added members | Added dues | Still short of new costs |
|---|---|---|---|
| Month 1 | 12 | $768 | $5,290.94 |
| Month 2 | 24 | $1,536 | $4,522.94 |
| Month 3 | 36 | $2,304 | $3,754.94 |
| Month 4 | 48 | $3,072 | $2,986.94 |
| Month 5 | 60 | $3,840 | $2,218.94 |
| Month 6 | 72 | $4,608 | $1,450.94 |
| Month 7 | 84 | $5,376 | $682.94 |
| Month 8 | 96 | $6,144 | $0.00 |
In this example the shortfall over those months adds to $20,908.58, and month 8 is the first with no gap. That is the amount a business line of credit would be sized to carry, drawn month by month and paid down once dues cover the new costs. If the plan only works with sign-ups well past the gym's own history, the expansion budget is the thing to cut.
What a funder can review in a gym's billing and churn
Membership software already holds the records a funder can review. A partner looking at a gym expansion can request:
- Monthly recurring billing for the last 12 to 24 months, by membership type.
- Failed card and bank draft payments each month, and how many were collected on a retry.
- Cancellations per month and the active member count at each month end.
- Business bank statements that show the dues deposits landing.
- The signed or draft lease for the larger space, with the rent schedule.
- Quotes for the racks, the floor and the turf lane.
Churn is worth working out from your own records before the call. In this example 19 of 540 members cancel in a month, a monthly churn of 3.5%. A gym that knows its churn can show that the 95-member target in the plan allows for it, and a reviewer can test the plan against the same records.
Other worked examples for Delaware, OH owners sit on the articles page. When the expansion numbers are ready, the funding request form takes an amount range, and the use is explained on the follow-up call.
By Thistlewell Business Funding · Updated
