Asset-Based Loan Fitness Center Gets A Boost
Author: Valerie Mellema
Date posted: 07.09.20

Many entrepreneurs succeed through a lot of hard work. That’s precisely what the husband and wife team brought to the luxury fitness center that they started right in their own neighborhood in a large East Coast city. The duo slowly built the place into a haven for the locals by saving up and financing everything independently. Once things were in place, it seemed like nothing could possibly stop them.

When Success Turns into a Problem

Everyone wants their business to be successful, but even doing well can bring its own set of problems. In this case, the fitness center was aesthetically pleasing, had an impressive collection of equipment, and quickly started bringing in workout aficionados. However, the number of people who wanted to join was too much for the facility, and that was turning into a severe issue.

 

What It Takes to Expand

The owners were proud that they’d been able to finance a dream business, and the idea of taking on debt to expand was a hard pill to swallow. There were lots of meetings, conversations, and decisions involved in what came next. The fitness center could stay the same, but people would be left out. Or the owners could find $500,000 in financing to take their dream to the next level. In the end, they decided it was worth finding funding – or at least seeing what options were available.

Selecting an Asset-Based Loan

Since the owners had a lot of pride in what they’d built, it only made sense to select a loan that took that into consideration. After all, a secured loan would likely be easier to get a large sum based on the business they’d done in the past and how much equipment they already had. So, while there were still several options, when it came down to making a decision, the right choice for the business seemed to be an asset-based loan.

The Nuances of a Business Asset-Based Loan

With an asset-based loan, the company could use all its equipment and real estate as collateral to build their business even larger. This means that the sweat and tears that went into buying those things could do even more good and help the couple succeed. In addition, asset-based lending turned out to have a lower cost than other options available to them. So with excellent terms and interest rates, they went for it.

 

The Conclusion to the Story

The loan came through, and the couple has put in more hard work to create a larger and even more lavish fitness center for the people in the community who demanded it. Since they loved working hard, it didn’t take as long as expected. The new fitness center opened to fanfare, and it was able to accommodate far more visitors – plus, it had space to lead classes. Today, the business is doing great, and nothing is standing in the way of even more success.

About The Author | Valerie Mellema

Valerie has over 16 years of experience as a professional writer of blogs, eBooks, articles and press releases, with a focus on finance and alternative lending. Valerie resides with her family in Texas and is passionate about her horses.

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