Business loans for gyms: What you need to know

Running a successful gym takes more than just passion for fitness—it requires reliable cash flow, high-quality gear, and the ability to adapt as your business grows so you can stay ahead in such a competitive market.

In this article, we’ll walk you through the most common reasons gyms apply for business loans, the types of finance available, and what lenders typically look for. If you're exploring funding options to grow your fitness business or keep it steady, here's what you need to know.

Common reasons why gyms need a business loan

The right business loan can provide fitness businesses with support across every stage of growth, including to:

Buy fitness equipment

A good gym needs good equipment—from cardio machines to strength training gear, functional training tools, and more. But outfitting a facility with high-quality equipment can be expensive, especially when you need multiple of the same machine. Financing helps you buy (or lease) it without the hefty upfront cost.

Hire more trainers and staff

As your membership base grows, so does the need for personal trainers, group fitness instructors, front desk staff, and cleaning personnel. A business loan can provide you with funding for hiring and onboarding the right people to maintain service quality and keep operations running smoothly.

Renovate

Whether you’re upgrading change rooms, adding new training zones, or improving accessibility, renovations can make your gym more attractive to new and existing members. Business loans can help you cover renovation costs and keep your gym competitive in a crowded market.

Expand to a new location

If your gym has outgrown its current space or you’re ready to scale to a new suburb, a business loan can support the upfront costs involved—like leasing a new property, marketing the launch, and outfitting the new location with equipment and staff.

Cover cash flow gaps

The fitness industry experiences seasonal fluctuations. Peak periods typically happen in January, as people pursue their New Year's resolutions, and in spring, as they prepare for summer. Slow periods, on the other hand, often fall in winter—when the cold weather can discourage gym visits—and summer, when people may be travelling or prioritising social plans over working out. 

A business loan can help smooth out fluctuations by providing working capital during slower months, helping you cover ongoing expenses or invest in marketing campaigns to attract members all year-round.

Types of loans for gym businesses

Depending on your business plan and goals, there are several finance options you can choose from. If you're unsure, an experienced broker like those at Valiant can help you understand which loan is right for your specific circumstances. But generally, these are the loan types SMEs in the fitness industry commonly use:

Business term loan

Business term loans let you borrow money, often without having to offer collateral. Approval is based on your gym's credit score and financial health, making them faster and more flexible than secured loans. Although they often have higher interest rates and smaller borrowing limits (due to being unsecured), they can be a great option for short-term needs, offering quick funding without risking your business assets.

Equipment finance

An equipment loan allows you to buy gym gear upfront while spreading the cost over manageable repayments—from treadmills and squat racks to spin bikes, cable machines, and more. The asset, which you own from day one, is used as collateral.

This type of finance is ideal for buying big-ticket items and keeping your facility well-equipped without putting pressure on your cash flow. You simply repay the loan in monthly instalments over an agreed term, and once it’s paid off, the asset is yours.

Business line of credit

A line of credit gives your gym access to funds up to a set limit, and you only pay interest on what you use. You can draw from it when needed—whether that is to cover quieter seasonal periods, order new merchandise, or manage payroll during a slow month—and as you make repayments, your available balance goes back up, ready for future use.

Merchant cash advance

A merchant cash advance (MCA) can be a good solution for gyms with steady card-based revenue and a need for fast access to funds. This alternative funding option gives you access to future sales upfront and, unlike traditional business loans with fixed repayments, it is repaid through a set percentage of your daily EFTPOS or credit card takings—making repayments flexible and aligned with your cash flow.

What lenders look for

When deciding whether to approve your gym loan, lenders will look at things like:

• Business performance. Your gym's business performance and financial situation reflect your ability to make repayments, and consistent revenue and stable cash flow give lenders more confidence to offer you a higher loan amount.
• Time in business. A longer trading history provides lenders with more financial data to assess, making it easier to evaluate risk and offer a higher loan amount with more favourable terms, especially if your gym has been operating for over two years.
• Credit score. A strong credit history tells lenders that your gym has consistently met its financial obligations, boosting confidence in your ability to manage new debt responsibly.
• Loan purpose. Having clear plans for how you'll use the funds—whether it’s buying equipment, expanding to a second location, or hiring more PTs—can help strengthen your application.

Finance your gym with Valiant

At Valiant, our goal is to connect you with the right loan for your needs—without the jargon or stress. Whether you're launching a new studio or scaling an existing space, we're here to help you take the next step in your fitness venture.

Our platform compares loans from over 90 lenders to connect you with ones that understand the fitness industry and offer finance options tailored to your unique needs. We manage the paperwork, handle the application, and help get your funding sorted—so you can stay focused on helping your members hit their goals. Reach out today to get a free quote.