Many people consider financing options to only be available to those in business; or those that work within a professional sector. Although a large majority of loan applications will be made by those doing so for professional purposes, it’s not to say that individual applicants aren’t permitted to apply for similar loans.
What is Gym Equipment Finance?
The simplest way to get to grips with financing options is by separating them from regular loans and mortgages. Where loans can be used for personal and professional reasons without any requirement for the borrower to state why they need the cash, and mortgages to purchase homes with the help of banks – finance is industry specific and can be applied to the purchase of particular items and equipment.
Who Can Apply for It?
As briefly mentioned above, finance agreements can be applied for by people working professionally, as well as those hoping to enjoy the potential for personal purposes. Imagine for a moment that a gym is in need of equipment in order to provide a service to the public – the owner of the fitness centre will be presented with the option to approach lending agencies, with the intention of obtaining a loan.
In these events, a lender may be willing to provide a large amount of cash to cover the costs of equipment and machinery, or smaller amounts depending on the borrower’s requirements.
On the other side of the coin, it is also an option for personal applicants to approach lenders, even if they don’t intend to use their equipment for commercial purposes. In the case of home gyms for example – if a person wants to kit out their property with the latest equipment, then they will be able to apply to lending companies for financial support and assistance.
Why Do These Applications Differ?
It’s not so much the application process that can differ; it’s the way in which a lender will reach a decision. If they are dealing with an applicant that intends to make use of their gym equipment for commercial reasons, then they may be keen to learn about the potential of the business, as well as the applicant’s financial history.
If both seem satisfactory, then they may be more willing to extend financing
For those applying personally however, the finance agreement may be treated a little more like a loan; albeit with the additional bonuses proposed by financial terms in general. This means that where a regular loan might require high annual percentage rates; finance may be lower, or more modifiable to the task at hand.
In these cases, the applicant’s credit history will usually be used to evaluate whether they will make a reliable customer
Does that mean that people can invest in their own home gyms?
If their financial income allows, then yes. Where a business may turn to its profits, or its potential for profit – all that a solo applicant will need to do is to demonstrate that their monthly earnings will be able to cover the cost of their finance. Furthermore, as a deposit can be placed – it’s always an option to reduce repayments even further, making this solution even more viable for individuals.