Fitness has become an essential part of most people’s lives and everyone is rushing to the gym to keep fit. This implies that there is a huge demand on the available fitness centers particularly the ones with advanced gym equipment to engage their clients. Since most of the fitness centers are small business entities, raising the required gym equipment finance can be quite a challenge for them at times. While you can run traditional lenders to secure a loan, you risk being a victim of their low approval rates.
You shouldn’t fret about this since merchant cash advance providers have come to your rescue. Compared to the traditional lenders, MCA companies are a better source of gym equipment finance due to their prompt and responsive nature to your financial needs. You need to keep your gym up to date especially as far as the new and sleek gym equipment is concerned. To address such pressing financial situations as a small business entity you need to approach the right lenders. You will never be disappointed when you consider MCA providers for gym equipment finance.
What is really meant by MCAs?
Alternative lenders are quite a number and the MCA companies are among the options that you should consider. In actual terms, an MCA is not strictly speaking a loan as it can be looked at as an investment on the future credit earnings of your business. It’s hinged on the performance of your business with your revenue base being the main consideration when you approach most of the MCA providers for gym equipment finance.
By taking an MCA loan, you will have pledged to remit a fixed percentage of your daily credit earnings. This is a pretty convenient source of gym equipment finance as the repayment will be based on the performance of your fitness center. This is in stark contrast to the traditional lenders who don’t give a hoot about the performance of your gym as they will expect you to repay a fixed amount on a regular basis with no regards to your earnings.
While you might require a form of collateral to qualify for a traditional loan, the good news about considering MCA loans is that you won’t need this. MCA loans are unsecured loans and the only required source of security is the ability of your fitness center to generate enough revenue to repay the gym equipment finance that will be offered to you.
You will generally need to be
- An established fitness center; for your gym to qualify for an MCA loan, you will need to be a relatively established entity, most of the MCA providers are comfortable when dealing with clients who have at least a year of experience in the business. You also need to accept the use of credit or debit card to settle transactions in your fitness center.
- Generating at least $10,000 per month; a fitness center needs to be able to sustain the repayment period and this cut off amount is what will prove this. Additionally, since you won’t need any form of collateral while applying for gym equipment finance, having a stable and reliable revenue base will be sort of by most MCA providers.
MCA loan approval and disbursement
The beautiful attribute about the MCA companies is their quick and considerate approach to the whole lending matrix. While it may take weeks or months for your traditional bank loan to be approved, MCA companies will approve and provide you with gym equipment finance in just a matter of days. Most of the recent MCA companies will approve and send you the cash advance in a matter of hours.
If you consider the advantages of this prompt response, you have no reason to look beyond the MCA providers for sorting you out in terms of gym equipment finance. A sudden breakdown of some costly equipment can be met by taking an MCA loan and so is the case of the much-needed gym equipment upgrade. You might also be faced with the problem of meeting the maintenance costs or money needed to pay for such service, this form of alternative lending will certainly come in handy.
During the application for an MCA loan for gym equipment finance, you will need to provide the following documents:
- A financial statement of your fitness center
- Your previous credit transactions in the entity &
- Your estimated credit transaction in the foreseeable future
No form of collateral will be demanded by the MCA providers and a fitness center with a bad credit history will additionally be accommodated. This is pretty convenient and reasonable to keep your gym up and running.
Repaying the gym equipment finance from MCA providers
While MCAs are generally considered to be expensive or rather high-interest loans, the repayment model is quite a sustainable one. You will be expected to remit a fixed percentage of your daily credit earnings. This means that you won’t strain as a fitness center in settling the gym equipment finance offered by the MCA providers.
During days characterized by high credit transactions, you will have to remit bigger amounts but you will be left with sufficient funds to sustain your gym on days with low credit transactions. The repayment period could range from as short as 3 months to as long as a year depending on your preference.
While some might argue that the cumulative interest accrued from the gym equipment finance from MCA loan offered is quite high, it is wise to consider the profitable nature of the investment you would put in place with the cash advance. You can work towards getting a favorable return on investment from the equipment you would purchase using the MCA loan.
Fitness centers could benefit from MCA loans in the following ways
Relying on MCA companies to provide you with gym equipment finance is associated with the following advantages:
Promptness in the provision of finance; while you may wait for months to get a loan from the traditional lenders, MCA companies will offer you the much-needed gym equipment finance in just a matter of days or even hours. This could be pretty advantageous in case you are faced with financial emergencies in your gym. You could also expand or equip your new fitness centers in a prompt fashion with the help of MCA providers.
High approval rates; there is nothing as uplifting as applying for gym equipment finance loan and being almost certain of your loan will be approved. Such is the case with considering MCA providers for the provision of financial aid for your fitness center. This is way better than the case of traditional lenders who have low approval rates for most of the small business loan applications.
Few and reasonable requirements; simplicity is a trait that those who came up with the idea of MCA loans had in abundance. To secure a gym equipment finance MCA loan, you will need to provide the MCA Company with only a few documents for the assessment of your revenue base. This could be quite a relief from the long, strenuous and generally bureaucratic procedures that characterize the traditional lending options.
No need for any form of collateral; unlike most of the traditional lending options, MCA companies won’t ask for any form of collateral when you seek for gym equipment finance from them. This simply means that you don’t need to worry about losing possessions you hold on to dearly in case you strain on repaying your loan. The revenue you can generate as a business is seen as the source of security for the MCA loans.
They are open to businesses with a bad credit score; while it may be nearly impossible for you to be considered for gym equipment finance by the traditional lenders in case you have bad credit, most if not all of the MCA providers will be very accommodative to your financial needs. Provided your fitness center generates adequate revenue you are bound to be considered for an MCA loan.
The repayment schedule is a sustainable one; as much as you would want to secure some gym equipment finance, the strain that you will undergo during the repayment has to be factored. While some consider MCA loans to be high-interest loans considering the cumulative interest accrued from them, it is also wise to consider the hustle free way in which you will repay the loan. Since the MCA providers factor in the performance of your business, you will not need to worry about running short of your working capital during the repayment period. This could be really sustainable for your fitness center.
In conclusion
Finding a reliable and responsive source of gym equipment finance shouldn’t be quite a hustle for you with the availability of MCA providers. You could handle your financial emergencies more comfortably by considering the services these alternative lenders provide. To keep up with the latest and costly trends in terms of gym equipment, apply for an MCA loan to a reliable MCA provider near you.