About Exercise Equipment Financing
Financing exercise inventory and equipment can be a key aspect to maintaining and growing your business. If you’re struggling with inventory procurement and supply chain costs, the extra capital can be a huge asset. Before choosing a financing option, however, you’ll need to consider your unique business needs to determine which option is right for you.
With a warehouse full of inventory, you’ll be able to meet demand, which can rise and fall unexpectedly. So, if you’re a business that relies on trends, you’ll need to forecast your inventory needs correctly. Use this information to help you select a financing partner and plan that helps you fill your needs.
Exercise Equipment Financing Opportunities
With all the choices out there, it can be overwhelming to choose a solution for exercise equipment financing.
The cost of equipment and the labor to manufacture it can be expensive. Every business has a unique budget and strategy when it comes to operations. With that in mind, you’re going to need a funding option that fits your needs. Not every type of financing or loan is going to work for you, as they have various guidelines and requirements. Let’s explore your options, so you can make an informed decision of your own.
Bank loan
A bank loan is a lump sum of capital that a bank gives your business. Each bank varies in their requirements, but, more often than not, they’ll be stricter than a non-traditional lender would be. Startups, especially, have a difficult time receiving a loan from traditional banks, as most won’t lend money to anyone who doesn’t have at least three years of business history. However, it can be beneficial to those who are searching for a high loan limit.
The benefits of a bank loan include a large lump sum; this can be useful for those who plan on expanding and need a larger amount of capital. If you’re able to meet a bank’s strict requirements, you’ll be considered a low risk. Therefore, they’ll often give you a lower interest rate than alternative lenders would, and their fees may be more cost-effective compared to other investors.
Keep in mind that you should do your research before starting the application process. It involves a lot of paperwork and time. You don’t want to do all that work just to find out that you don’t qualify, as bank loans have low approval rates. Some may even ask that you provide collateral in exchange for the approval or lower interest. This can include inventory, property, and invoices.
Revolving line of credit
A revolving line of credit is similar to a credit card. You make payments on the amount you owe, and as you pay, more funds become available to you. It’s useful for those who need consistent cash flow available for day-to-day operations, such as rent, payroll, utilities, and inventory. Your limit amount will be determined by your business history, credit score, and the guidelines involved with the specific bank or lender.
The benefits include freedom of use, meaning you are able to decide what and when you spend your funds on, so long as it’s related to your business operations. The loan will help you build business credit history, so you can apply for larger loans later on. You can also access it with ease, withdrawing the funds when you need them. This is especially helpful during emergencies.
With every type of loan comes a list of downsides. Often, lines of credit involve higher interest rates, so you’ll have to compare lenders if you’re set on a business line of credit. The low borrowing limit isn’t ideal for those who need a large sum to expand their operations. Extra fees may be included, depending on the contract you sign. If you’re in need of quick cash, this is a great option.
Crowdfunding
Crowdfunding involves a group of investors putting their money into a business or person’s idea. The business will pitch an idea to potential investors, and if they like the idea, they’ll contribute to the campaign. This type of funding doesn’t involve traditional business history assessments or credit checks, and you usually don’t have to repay the investors. Instead, you’ll give your investors rewards or even equity in your business, depending on the type of crowdfunding you choose.
This is a good option for those who have a novel idea or product and have the time and creativity they need to build a campaign. However, many crowdfunding campaigns fail, so this is not a fail-safe way to secure exercise equipment funding.
Equity financing
If you’re a startup looking for funding or an active business owner looking to expand, then equity financing might be for you. Equity financing involves selling shares of your business to investors. Investors can include family, friends, venture capitalists, or angel investors. You can present the offer to the public as an IPO, or initial public offering, as well, although IPOs are usually reserved for mature businesses.
If you’re inexperienced, then having some knowledgeable investors may be beneficial. They’ll offer insight, as they’re now your business partner. In addition, you won’t have to pay back the funds in the traditional sense. Instead, the investor will take equity in your business, which means a share of future profits and a decision-making stake in your company.
Keep in mind that since profits are shared among the shareholders, their cut of the profits may be more costly than the interest you would have paid on a loan. Your business’s ownership is also diluted, as you are no longer the sole owner.
Business grant
If traditional funding isn’t possible for your exercise equipment financing, then you can apply for a grant. Business grants are funded by private organizations, the state, and the federal government. You don’t have to repay a grant, but they can be very difficult to obtain. They have strict guidelines that must be met and loads of paperwork for you to file. However, if you do succeed in securing a grant, it can be beneficial to your business.
Since grants are so difficult to obtain, they often add credibility to your business. There are a number of different grants out there, often earmarked for different types of businesses and business owners. With the money, you can improve your cash flow, stock your inventory, and plan for future trends. It’s also a great alternative if you can’t afford to repay a large lump sum of money from a lender or bank.
Keep in mind that applying for a grant is very time consuming. If you need the cash now, then you’ll want to look elsewhere. It’s also only for short-term business solutions. It’s not a consistent flow of funding, which most businesses need in order to stay open during the slow seasons. If you don’t qualify, then don’t put in all that work just to be rejected. Many businesses that do qualify are rejected every day, due to the limited amount of money that can be dispersed.
Merchant cash advance
A merchant cash advance is great for those who want flexibility in their exercise equipment financing. You repay this loan with a percentage of your future debit and credit card sales. This type of funding is much easier to obtain compared to other loans, as long as you have a steady stream of revenue. Startups often have great luck with this financing type, as you only have to be in business for three months before you’re considered eligible with most lenders.
If you’re a company with a low credit score and a business history that’s lacking, then you’ll find that this type of loan has lenient requirements. It’s a quick and easy application. You don’t even have to offer collateral, however your loan limit will be determined by the performance of your business.
On the other hand, merchant cash advances typically have high interest rates due to the flexibility of their use and the higher level of risk involved. However, your payments will fluctuate with your sales, eliminating the stress that a fixed monthly payment can put on your business.
Invoice factoring
If your exercise equipment business has outstanding balances and long repayment terms, then this type of financing may be for you. Factoring companies will purchase your invoices at a discounted rate, giving you capital quickly. Not every business can afford to wait for clients to pay their invoices, so this is the next best option.
This is a quick form of funding, and is often safer than other types of loans. The process involves evaluating your invoices’ value and your business history. Factoring companies are often quick during this investigation. You can get up to 90% of the invoice upfront, and the rest will come later after the client has paid their bill.
Keep in mind that you won’t collect all of the invoices’ value. There are fees involved—the factoring companies need to make money somehow. These fees can vary significantly depending on the company.
There are risks involved in invoice factoring, too. If a client fails to pay their invoice, you may be responsible for covering the payment. Do your research before signing on the dotted line, as there are many types of invoice factoring.
8fig for Exercise Equipment Financing
8fig is an alternative option for those who need exercise equipment financing. It’s a funding and growth platform that provides businesses with the right tools to grow and succeed. 8fig gives you the opportunity to take control of your finances and manage your cash flow without the hassle that comes with strict application guidelines and traditional funding schedules.
Why use 8fig for exercise equipment financing
8fig stands out from banks and other lenders because of our fast, continuous, and flexible financing method. Traditional loans can mean weeks of paperwork and months before you receive funding. Businesses often can’t afford to wait that long. What’s more, instead of giving you one lump sum, 8fig infuses capital into your business continuously in order to maximize your cash flow.
How 8fig works
1. Apply
The application process is fast and easy. Answer some questions about your business and sales, and then provide basic information about your supply chain stages and expenses.
2. Connect your store and bank account
In order to provide you with an optimized Growth Plan, 8fig requires that you connect your store and bank account to the 8fig platform.
3. Get funded
With 8fig, you can get funded in just days. Since 8fig funding is continuous, you receive capital infusions into your business right when you need it.
4. Make adjustments
If something changes and you need to adjust your payments, remittance schedules, or even funding amount, you can always do so thanks to 8fig’s flexibility.
5. Grow your business
All that’s left to do is sell, sell, sell. With 8fig, businesses are able to scale 2.5x as fast.
What 8fig offers in addition to financing
Funding is one area in which 8fig excels, but it’s not all that we have to offer. 8fig’s Growth Plans manage your cash flow, and you get access to the tools and resources you need to grow your brand and stay on top of your analytics. You can count on 8fig to help you through the whole process.
When it comes to 8fig, when you win, we win. It’s as simple as that. Offering software to map your supply chain, manage your cash flow, and track your sales is just part of the process.
Who is eligible for 8fig exercise equipment financing
With lenient requirements and a simple application process, a lot of eCommerce businesses are eligible for exercise equipment financing. All we require is 12 months of business history and $100,000 or more in yearly sales, with an average of $8,000 in revenue per month for the last three months. With numbers like that, you can count on 8fig funding to boost your budget and help you grow faster.
How to apply for 8fig financing
It’s easy to apply for 8fig financing, and it only takes a few minutes. Simply answer the questions and follow the prompts and you’ll get funded in no time!