Private Lending for Gyms and Fitness Businesses

Private Lending for Gyms and Fitness Businesses

Gyms and fitness businesses operate in a cash flow environment that traditional banks often struggle to assess. Membership churn, seasonal revenue swings, expansion costs, and fit-out heavy expenses can make bank finance slow or unavailable.

Private lending for gyms provides short to medium term funding solutions secured by property, allowing gym owners to access capital without being constrained by rigid bank serviceability models.

This page explains how private lending is used by gym and fitness business owners in Australia and when it may be appropriate.

Why Bank Finance Is Often Difficult for Gyms

Banks typically assess gyms based on:

• historical profit consistency

• fixed long term revenue contracts

• low fit-out risk

However, gyms often face:

• high upfront fit-out costs

• variable membership income

• rapid growth or relocation cycles

This mismatch is a common reason gym owners turn to private lending.

How Private Lending Supports Gym Businesses

Private lenders focus less on month-to-month membership data and more on:

• property security

• equity position

• overall business strategy

• exit plan

This makes private lending suitable for:

• new gym locations

• studio expansions

• equipment purchases

• short term working capital

For broader context, see private lending in Australia.

Common Use Cases in the Fitness Industry

Private lending is commonly used by gym owners for:

• funding new site fit-outs

• acquiring an existing gym business

• refinancing short term liabilities

• bridging between lease changes or relocations

Loans are usually structured with a defined exit, such as refinance once the business stabilises.

Security and Loan Structure

Most gym related private loans are secured by:

• residential property

• commercial property

• mixed use assets

Loan to value ratio plays a key role in approval. Lower LVRs generally result in stronger outcomes.

You can learn more in our guide to loan to value ratios in private lending.

When Private Lending May Not Be Suitable for Gyms

Private lending may not be appropriate where:

• no clear exit strategy exists

• the business relies on long term low cost debt

• the property security is insufficient