Quick answer
Gyms and fitness studios borrow for strength and cardio equipment, studio fit-outs, new locations and member software and access systems. Lenders focus on active membership numbers, churn, direct-debit income reaching the business account, existing equipment leases and the lease on the premises. Steady membership income supports unsecured options; new sites often need property security.
Key points
- Recurring direct-debit income is a gym's strongest lending asset.
- Churn matters as much as sign-ups.
- Stacked equipment leases can quietly eat cash flow.
- New locations need a pre-sale or ramp-up plan.
- Common uses
- Equipment, fit-outs, new sites, systems
- Lenders focus on
- Members, churn, direct debits
- Unsecured options
- Typically $5k – $500k
- Property-secured
- $20k – $5m
Gyms and fitness studios run on a simple promise: members pay every week or fortnight, and the gym keeps them coming back. That recurring income makes fitness businesses attractive to lenders — as long as it’s real, it reaches the business account and members stay long enough to matter. Equipment is the other half of the story, and it’s usually the reason owners enquire.
What do gyms and studios usually borrow for?
- Strength equipment. Racks, platforms, plates, benches and machines.
- Cardio. Treadmills, bikes, rowers and ski machines, often with connected technology.
- Fit-outs. Flooring, turf, mirrors, change rooms, recovery areas and air conditioning.
- New locations. A second studio or a bigger site.
- Systems. Member management, access control and booking platforms.
- Specialised studios. Reformer Pilates, cycle, boxing or recovery spaces.
How do lenders look at a gym?
Membership numbers and trends. Active members, new joins and cancellations each month. Growth is good; retention is better.
Direct-debit income. Most gyms collect memberships through a direct-debit provider that deposits into the business account. Lenders compare provider statements with bank statements to confirm income. The ATO’s small business benchmarks for health and fitness centres give typical cost ratios for comparison.
Staff. Trainers and instructors may be employees or contractors. Employees are generally covered by the Fitness Industry Award. Lenders look at whether staffing costs are sustainable at current membership levels.
Existing leases. Many gyms lease equipment from several providers. Lenders add every repayment together to see how much income is already committed.
The premises. A long lease with options supports fit-out lending; a short one makes it harder.
If your membership base is solid, see what your gym could access — no credit check to enquire.
A closer look: churn, and why it changes the numbers
Two gyms each have 600 members. The first loses 20 a month and signs 25; the second loses 60 and signs 65. Both grow, but the second is running hard to stand still — spending more on marketing and promotions, and relying on a steady stream of new sign-ups to cover repayments. A lender will see the first as far more predictable.
That’s why membership reports matter. A simple monthly table of active members, joins and cancellations for the past year tells a lender more than any marketing plan. If churn is high, explain why (student populations, seasonal residents) and what you’re doing about it (onboarding programs, community events, pricing). If retention is strong, lead with it. It’s the best evidence you have that new equipment will pay for itself.
Documents that help
| Document | Why it matters |
|---|---|
| Business bank statements | Direct-debit deposits and costs |
| Membership reports | Active members, joins, cancellations |
| Direct-debit provider statements | Confirms recurring income |
| Lease | Site security |
| Equipment quotes and existing lease schedule | Purpose and commitments |
Red flags for gym loans
- High churn masked by aggressive sign-up offers.
- Membership income not reaching the business account, for example because of personal accounts or offsets.
- Heavy existing equipment leases.
- A new site with no pre-sales or ramp-up plan.
- A short lease on a heavily fitted-out space.
Questions a lender will ask
- How many active members do you have, and what’s the monthly churn?
- What does the average member pay?
- Which equipment is already leased, and when do those leases end?
- How long is left on your lease?
- What will the new equipment or space add?
How to strengthen a gym application
Export twelve months of membership data. Reconcile direct-debit provider payouts with your bank deposits. List all equipment leases with their monthly costs and end dates. Get quotes for the new equipment and explain what it enables — a new class format, more capacity at peak times, or replacing broken machines that are costing members. For new sites, show pre-sale numbers.
When should a gym apply?
Before the equipment fails or the waitlist grows too long. Many gyms plan upgrades for late winter so new equipment is ready for the spring and new-year surge in sign-ups. New sites should arrange finance before signing the lease where possible, so the fit-out budget is locked in.
Common misconceptions about gym finance
“More members always means a stronger application.” Retention matters as much as sign-ups.
Illustrative scenarios
Illustrative: new racks and turf. A strength studio with a loyal membership base wants $70k for new racks, platforms and a turf sled track. Twelve months of steady direct-debit income support an unsecured facility.
Illustrative: a reformer studio. A gym owner wants $180k to open a reformer Pilates studio next door. Pre-sales are promising, but the business can’t carry the full amount unsecured. A second mortgage over the owner’s home funds the fit-out.
Secured or unsecured for a gym?
Equipment and smaller fit-outs often fit unsecured lending of $5k to $500k, sized on turnover and bank statements. New locations and larger builds may need property-secured loans from $20k to $5m. Clinics with rehab gyms should also see the allied health guide, and our guide on specialised equipment as security explains how fitness gear is valued.
Could your gym qualify?
A 60-second enquiry is all it takes. There’s no credit check when you first enquire, and your details aren’t sent to a crowd of lenders who’ll ring you mid-class. A real person who understands memberships and equipment will call you back. Please be accurate about turnover, the amount and property so we can match you properly first time.
Frequently asked questions
Can a gym get equipment finance without property?
Often, yes. A gym with steady direct-debit income can look at unsecured options sized on turnover and bank statements. Property security helps for larger fit-outs or new sites.
Do lenders look at membership churn?
Yes. A gym that signs up many members but loses them quickly has less predictable income than one with slower growth and strong retention.
Is it better to lease or buy gym equipment?
It depends on how long you'll keep the equipment and your cash flow. Some owners prefer to own strength equipment that lasts for years and lease technology-heavy cardio. Compare total costs over the full term.
Can I borrow to open a second gym?
Yes. Lenders look at the first gym's performance, the new site's lease and your plan to build membership, ideally with pre-sales. Property security often helps.