Equipment financing is a method of purchasing equipment where you take a loan from any finance broker of your choice. Starting and maintaining a commercial business is no walk in the park. It requires a large amount of money, and most of the time, this money isn’t readily available at our disposal.
Health Stream Fitness is privy to the potential overall cost of fully financing a gym. As a result of this, we provide access to financiers who can take care of your needs. They offer a service where they provide you with suitable equipment finance options you can choose from. Some of them include but are not limited to the following:
Taking a loan is a credible way of financing the purchase of equipment for your commercial gym. There are financial institutions that are available for financing loans specifically for the purchase of commercial gym equipment. Here’s how it works. Most times, applications for these loans can be carried out online. You may, however, opt to go directly to the office of the financial broker of your choice.
Application and Vetting Process
You are required to fill out a form that contains questions that help the financial broker of your choice determine if you would be eligible for equipment financing loans. Some of these questions include your name, place of origin, source of income, residential address, credit score and a comprehensive list of your valuable assets. Having a bad credit score doesn’t necessarily prevent you from qualifying for commercial gym equipment financing. It, however, makes it a little hard.
Passing the first stage that helps your financial brokers determine if you qualify for the loan automatically leads you to the next process. Here, you and your financial broker decide on the most suitable loan amount for your needs. You can choose to borrow the entire amount or a partial one; it depends on the funds you have in hand. After you have decided on the most suitable amount, you can move on to the payment method.
The payment method is entirely up to you. You can choose to pay back the loan in monthly, quarterly or even fortnightly instalments. Another method you can use is the balloon payment method. You discuss with your financial broker, and you both decide on the lump sum you would pay at a particular time. This payment period is mostly applicable towards the end of the loan period. It is suitable for many people because it means they get to pay off their loan almost all at once and at a particular time. It is super convenient for your finances as you don’t have to make a regular payment when you opt for this option.
The interest rate is the most important thing to note when you are taking a loan. There are equipment finance brokers who attach exuberant interest rates to their loans. You have to be extra careful when selecting a suitable equipment finance broker because something as simple as an interest rate can run you dry financially. There are many equipment financing brokers in business in Australia, and you should take advantage of this by comparing their various interest rates and selecting the most suitable one.
Note that loan interests usually come in the form of percentages, and they are paid annually. Failure to complete your loan repayment before the year ends means there would be a spill-over of both your remaining loan and the interest rate. The longer it takes you to repay your loan, the more interest you have to pay.