Line of Credit Fitness Center Gets Healthy
Author: Valerie Mellema
Date posted: 10.05.22

Fitness centers have been popular for decades. No matter what fitness trends are going through the country, gyms are there for people to get healthy. One East Coast gym had been doing pretty decent business for years. Things were smooth and streamlined and there seemed to be no need for improvement. However, this isn’t an experience that can last forever. Sometimes things happen that necessitate an investment of money, time, or both. This case study will look at this gym and how it made it through one of those situations.

Breathing New Life into the Gym

 

Things seemed solid at the gym but over time, fewer people were coming in. At first, nobody worried much about it as attendance can vary throughout the year. However, eventually, the owners realized something had to be causing this lull that wasn’t breaking.

 

The first thing they did was talk to customers to find out what they were doing right and wrong. It turned out that another gym in the area had recently updated its equipment and many people had switched for that reason, with others considering doing the same.

The Cost to Innovate

 

Since this was a problem that could easily get worse, an owners’ meeting was held. The problem needed to be handled quickly to avoid a larger exodus of customers. After talking, it was agreed that updates were needed to stay competitive.

 

They could choose to update to the standards of other gyms in the area or go beyond. The decision to go further was an easy one to reach. It was the best way to bring clientele back into the fitness center. After going over the needed changes and costs, it was decided that about $150,000 would be needed to move forward.

 

Choosing a Path to a Modern Fitness Center

 

The decision to update led right to checking for financing options. It would not be possible to get together enough money for all the things that needed to be replaced or updated. Instead, it was clear that some kind of small business financing program was the best bet.

 

Rather than taking out a traditional business loan, a business line of credit seemed to be the better option. Once that was decided, the owners applied and waited to see what would happen.

The Perks of Choosing a Business Line of Credit

 

The top reason a business line of credit was chosen is that it offered more flexibility than other options. It can be used as needed, paid off, and then used again for something else. This leaves the option open to access the money if an emergency occurred in the future. All in all, it fit the needs of the gym on all fronts.

 

What Happened Next?

 

The fitness center was approved for the business line of credit and immediately started to improve the facility with better equipment and amenities. It took a bit of time but word got out around the neighborhood and the gym began to regain the traffic that it had had in the past.

 

Today, this gym is considered one of the best in the city. It’s highly competitive and has a wide range of clients who visit to stay healthy. The business line of credit truly added new life to an older business and let it move forward to continue operating for years down the road.

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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