Alternative Funding For Gym Reopening

When the pandemic restrictions were announced, one of the first businesses to be affected was the gyms. While this helped control the spread of the disease, it was a huge blow for gym owners. Spending weeks, or months, without income is sure to have a significant financial impact. Thankfully, there are alternative funding options for you to explore. Let’s take a closer look at some of these, so you’ll be able to re-open with confidence.

What Has The Financial Impact Been?

The first thing that you need to determine is what the financial impact of the shutdown has been. There are a few aspects that you might need to consider. First, many gyms have had to lay off staff to help them get through the shutdown. Will you be able to re-hire these employees or will you need to recruit new people? You might also need to consider the costs of maintaining equipment and getting everything operational again. By adding all of these expenses you’ll be able to get your total loss of income during the shutdown.

You might also need to develop a plan for re-opening. In this case, you’ll need to make sure that you’re complying with any social distancing guidelines that your state has in place. You might want to set-up an email alert with local authorities, so you’ll know when something changes. In some cases, you might need to provide hand sanitizer to customers and make sure that the facilities are regularly cleaned. If this is the case, you’ll need to factor these costs in, to make sure that you have enough money to re-open your business.

How Can You Obtain Funding?

Once you have a better idea of how much it is going to cost to re-open your business, you’ll be able to start planning for your financial future. Often, gym owners will need some financial help to re-open. Though the business might not have been making any money, they still needed to pay the associated expenses, like electricity bills. When faced with the costs of re-opening the business, some gym owners might realize that they don’t have enough left in the budget to cope with these costs. This can be a very alarming moment, as they contemplate filing for bankruptcy. Thankfully, you don’t need to take such drastic action. There are plenty of ways to get the fast cash you need to re-open and get your business back on track.

First, you might be able to get a loan from the bank. However, these can take a long time to get approved and will often come with high-interest rates. Also, if your business hasn’t been earning revenue for the past few months, a bank might be unwilling to lend to you. Because of this, a bank loan usually won’t be the best option for gym owners.  

Another option to explore is government loans. Initiatives like the Payment Protection Program (PPP) can be a good area to explore, as they were created specifically to deal with the financial impacts of Covid-19. However, you’ll often need to fill in a lot of paperwork to apply. Also, there will be limits on what you can spend the money on. Before you apply to these programs, read the terms and conditions closely. This will allow you to see if this is the right option for you.

Instead, you might want to consider exploring your alternative funding options. There is a range of programs that you can use to help you get back on your feet. Also, alternative funding providers tend to be more flexible than banks, so you’ll be able to get a better deal. Let’s take a look at some of the programs that you might want to explore.  

Merchant Cash Advance

If you’re looking for quick cash with affordable repayments, you might want to consider a merchant cash advance. In this case, you’ll be able to get between $5,000 to $500,000. To repay these funds, you’ll need to give the lender a percentage of sales. This arrangement ensures that it will be easier for your business to make repayments. To apply for this option, you’ll need to have been in business for at least three to six months and have a monthly revenue of over $10,000. You’ll also need a FICO score of over 500. If you can meet these requirements, you’ll be able to get approved within 48 hours and will have the money in two to five days.

Unsecured Business Line Of Credit

Another option for gym owners to consider is an unsecured line of credit. This can be a great resource to draw on during difficult financial times. In this case, you’ll be able to take a loan whenever you need it. You’ll then need to pay interest on the money you borrowed. You will be able to use this line of credit over and over. To apply, you’ll need to make sure that you have been in business for at least six months and have a FICO of 620. You’ll also need a monthly revenue of at least $25,000. If you get approved, you’ll be able to get a line of credit of between $100,000 to $500,000.

Unsecured Business Loans

You might also want to think about taking out an unsecured business loan. This arrangement means that you won’t need to put up any collateral against the loan. This will allow you to take out the money needed to re-open the gym and replace lost income without needing to put your assets on the line. Also, repayments will often vary depending on your revenue, giving you more flexibility. Once you’ve been approved, you’ll be able to borrow between $10,000 and $500,000. You’ll get the money within one to two business days. 

Secured Business Loans

In some cases, you might want to secure your assets against the loan. In some cases, you might be able to use this collateral to get a better interest rate or get a loan with bad credit. This might also allow you to get the money faster. With this option, you’ll be able to get between $10,000 and $500,000.  This should be more than enough to give you the funds needed to re-open your gym.

What Funding Option Is Best For My Gym?

As you can see, there are plenty of alternative funding options for you to explore. The best option for you will often depend on your personal circumstance. In some cases, you might want the flexibility of a merchant cash advance. In others, it might be best to give yourself a loan.

When deciding what you want, make sure to think about your COVID-19 gym reopening plan. This will give you a better idea of how much you’ll need to spend. It might also be a good idea to talk to someone about your options. The friendly team at South Florida Funding Group will be able to give you more information, so you can make the best possible choice.

Conclusion

The lockdown has had a profound effect on gym owners. For many, there has been a significant loss of income during the shutdown. This, combined with the costs of re-opening, can be a huge financial burden. Thankfully, there are plenty of ways to get quick cash. Your best option will be using one of the services offered by an alternative lender. This will give you the funds you need to reopen and get your business back on track. So, contact South Florida Funding Group today and find out how your gym can get the money it needs.