Finance Lease For Gym Equipment For A Growing Health Club Chain

This Health Club chain originally came to its commercial finance broker after taking a hit after Covid. On the one hand the business was showing severe losses, however, on the other hand it had a plan for recovery through restructuring, and a good team on board.

This deal didn’t tick the boxes on paper for a traditional lender. But the broker could see it was a good deal with a story to it, and he needed to get it in front of an underwriter.

The broker knew it was a perfect deal for Asset Advantage. Philip Knight, Head of Credit and Risk at Asset Advantage took the approach of meeting with their Finance Director and emerged satisfied with the proposal.

£40,000 Finance Lease for gym equipment over a 5 year term.
Finance Lease is a popular choice for gym equipment. You don’t need to pay VAT upfront, and there are some tax relief benefits. Most clients then upgrade the equipment at the end of the 3 year or 5 year term.

Having Asset Advantage as a funder really made the difference in getting this deal done for the client. As there weren’t many other options available to the broker to pursue. The severe losses meant that a traditional lender would decline the deal, and a sub-prime lender would have an extremely high rate, which the client may have walked away from. Meaning working with Asset Advantage was pivotal in reaching a deal for this client.

From this first deal four more have followed in reasonably quick succession. The chain now operate four health clubs around the country, and are making a profit again.