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Learn how fitness equipment suppliers can offer customer financing for commercial gyms, studios and multi-location facilities in the U.S. and Canada.
A commercial gym may need 30 cardio machines, a boutique studio may need 20 reformers, or a multi-location operator may need a complete strength-equipment refresh without wanting to pay the entire invoice upfront.
For fitness equipment suppliers, customer financing can make those purchases easier to budget without forcing the supplier to carry a multi-year receivable.
The key is structuring the financing around the equipment's useful life, the operator's cash flow and the actual delivery and installation process.
Quick Answer: Fitness equipment suppliers can offer customer financing through commercial lenders, lessors or a financing brokerage while remaining the equipment seller. Strong programs separate commercial-grade equipment from build-out costs, match repayment to the operator's cash flow and replacement cycle, and confirm delivery, installation, insurance and funding conditions before releasing the equipment.
Commercial fitness is a capital-intensive business.
A new facility can require cardio machines, selectorized strength equipment, racks, free weights, flooring, lockers, access-control hardware and recovery equipment before meaningful membership revenue has accumulated.
In the United States, the Health & Fitness Association reported that 81 million Americans held a fitness-facility membership in 2025, based on its national study of approximately 18,000 U.S. residents. Health & Fitness Association
Canada's fitness and recreational sports centre industry generated CAD $5.8 billion in operating revenue in 2024, according to Statistics Canada. That was industry operating revenue—not equipment spending or financing volume—but it illustrates the size of the operating market suppliers serve. Statistics Canada
For a supplier, the useful conclusion is not that every gym should finance equipment. It is that commercial operators frequently have substantial equipment needs while also needing liquidity for rent, payroll, marketing, maintenance and facility ramp-up.
Canadian buyers that want the borrower-side analysis can use Mehmi's Gym & Fitness Equipment Financing in Canada guide. This article focuses on the supplier's financing program instead.
In a typical third-party program, the supplier sells the equipment while an independent lender or lessor provides the underlying financing.
The buyer selects the equipment and receives an itemized quote. Financing is offered alongside the cash-purchase option. The gym or studio completes an application and the financing source reviews both the customer and the equipment package.
An approval can then be subject to conditions involving documentation, customer contribution, insurance, equipment information, delivery or acceptance.
Only after those requirements are satisfied should the supplier treat the transaction as ready for payout.
That distinction matters:
Approved is not the same as funded.
A supplier shipping CAD $200,000 of treadmills and strength machines should know exactly what event causes the financing provider to release its money.
For Canadian suppliers building a repeatable program, Mehmi's Vendor Financing Program for OEMs and Distributors explains the broader quote-to-payout workflow.
Commercial-grade fitness equipment is generally easier to analyze than consumer equipment because it is designed for business use and usually has identifiable specifications, manufacturers and resale markets.
A financing package may potentially include:
The provider still decides what qualifies.
A USD $20,000 commercial treadmill line is easier to identify as collateral than branding, paint, wall treatments or a marketing campaign.
Rubber flooring, mirrors, turf and other facility components can fall somewhere between movable equipment and leasehold improvements depending on the installation.
The supplier should itemize those costs instead of presenting one line reading:
"Complete fitness facility — $350,000."
That gives credit a clearer picture of which assets support the financing.
Because they have different recovery value.
Suppose a new gym project consists of CAD $120,000 of cardio equipment, CAD $80,000 of strength equipment, CAD $25,000 of flooring and turf, CAD $15,000 of delivery and installation, and CAD $60,000 of construction and leasehold improvements.
The project costs CAD $300,000.
That does not mean all CAD $300,000 will necessarily be treated the same way by a financing provider.
Commercial treadmills, bikes and strength machines can potentially be removed and remarketed.
Walls, electrical improvements and custom millwork cannot be recovered as easily.
Some lenders or lessors may include eligible delivery, installation and selected soft costs when the overall transaction supports them. Others may require the operator to pay more of those costs separately.
Franchise projects raise the same issue. Mehmi's Franchise Equipment Financing Canada guide explains why equipment, leasehold improvements and opening working capital should not automatically be combined into one undifferentiated financing request.
The financing provider still has to establish repayment capacity.
For an operating fitness business, underwriting may consider membership revenue, bank activity, profitability, rent, payroll, existing debt, liquidity and credit history.
Recurring membership revenue can help tell the story, but gross membership sales are not enough.
A facility with CAD $150,000 of monthly revenue can still have weak repayment capacity if occupancy costs, payroll, marketing and existing debt consume nearly all of it.
The operator's history also matters.
An established gym replacing aging cardio equipment presents a different risk from a first-time owner opening a 20,000-square-foot facility without operating history.
For startups, credit may place greater weight on owner experience, available liquidity, facility lease, pre-opening budget, franchise support where applicable, customer contribution and the quality of the equipment.
There is no universal credit-score, revenue or down-payment threshold that applies to every gym.
Suppliers should not advertise one.
A startup fitness facility needs cash for much more than the machines.
The owner may still need to pay rent deposits, construction costs, payroll, insurance, pre-opening marketing, software expenses and utilities before memberships reach a sustainable level.
That makes the down-payment decision important.
If an owner has CAD $150,000 available and places CAD $120,000 into the equipment purchase, the financing request may look stronger—but the business may then have only CAD $30,000 left to survive its launch period.
The financing structure should not leave the operator "approved but undercapitalized."
A supplier should therefore ask enough questions to understand whether the buyer has accounted for the entire opening budget.
This is particularly relevant to franchise operators. The equipment may be standardized by the franchisor, but the franchise fee, construction, rent deposits and working capital are not the same thing as financeable fitness equipment.
Not all gym equipment ages at the same rate.
Heavy-duty racks, platforms, benches and free weights can remain useful for a long time with proper maintenance.
Cardio equipment can face a different replacement cycle because it contains motors, belts, electronics, displays and other components subject to heavy daily use. It can also become visibly dated in a member-facing facility.
The financing term should reflect those realities.
A lower monthly payment created by stretching cardio equipment over an excessively long period can leave the gym making payments on machines it already wants to replace.
For the same reason, a mixed package may warrant closer analysis than simply applying one term to everything.
Mehmi's buyer-side Gym & Fitness Equipment Financing guide provides additional discussion of matching lease structure with equipment life.
Fitness suppliers often sell beyond traditional membership gyms.
Physiotherapy and rehabilitation clinics may purchase treadmills, resistance equipment and rehabilitation systems.
Hotels may purchase smaller cardio and strength packages as an amenity.
Corporate fitness centres, condominiums, universities and recreation operators can have their own procurement and credit profiles.
The asset may look the same while the repayment story changes.
A clinic, for example, can support its financing through treatment revenue rather than membership dues. Mehmi's Physiotherapy & Rehab Equipment Leasing in Canada guide covers that buyer category separately.
Do not build your supplier program around one underwriting assumption if your customers span several industries.
Used commercial fitness equipment can potentially be financeable, but condition and maintenance history become more important.
Strength equipment is often relatively straightforward to inspect.
Used cardio requires more care.
A treadmill may appear cosmetically clean while having substantial belt, deck, motor or electronic wear. A bike or stair climber may have accumulated heavy commercial use even if the frame remains in good condition.
The financing source may therefore care about age, manufacturer, model, condition, service history, seller, purchase price and remaining useful life.
A refurbished unit should be described accurately.
"Refurbished" is more credible when the supplier can explain which components were inspected, serviced or replaced and what warranty remains.
Ownership matters too.
Used equipment purchased from another facility can still be subject to an existing security interest. The seller's possession of the equipment does not automatically establish clear title.
A chain replacing equipment at eight facilities creates a different workflow from one independent gym buying one package.
Not every location may receive equipment simultaneously.
The supplier might ship Toronto in October, Calgary in November and Vancouver in January.
A financing source may be able to structure separate equipment schedules or staged funding so completed locations can proceed without waiting for every unit in the rollout.
But that needs to be agreed in advance.
The supplier should provide a location-by-location equipment schedule showing purchase amount, equipment, expected delivery date and any installation requirements.
Do not reach final funding and reveal that half the approved equipment will not exist for another three months.
The same principle applies when a franchisee is opening several sites.
A controlled financing application is preferable to having individual salespeople collect sensitive financial documents through ordinary email.
The initial application can identify the buyer, ownership, amount requested and equipment package.
Additional financial statements, bank information or guarantor documents can then be requested when the financing provider actually needs them.
Canadian suppliers can use Mehmi's Online Credit Application for Equipment Dealers guide as a framework for designing that handoff.
A salesperson needs visibility into whether a transaction is moving.
That does not necessarily mean the salesperson needs unrestricted access to every owner's bank statements or personal financial information.
It can be.
A supplier may want the customer to see financing as part of the supplier's normal buying process instead of receiving an unrelated lender phone number.
A co-branded or white-label application can keep the supplier's brand visible while an independent lender or lessor handles underwriting.
That should not obscure who makes the credit decision.
The supplier should not tell the customer:
"We approved you."
when the financing decision actually came from an independent provider.
Mehmi's White Label Equipment Financing for Dealers guide explains the distinction between a branded experience and true in-house lending.
Businesses that want a simpler third-party structure can also review Mehmi's Dealer Finance Program Canada: Third-Party Setup.
Assume an established Canadian gym purchases CAD $180,000 of commercial fitness equipment before applicable sales taxes.
The operator contributes CAD $30,000, leaving CAD $150,000 financed.
For illustration, assume a fixed 9.25% nominal annual interest rate, a 60-month term, monthly payments and no balloon or residual.
The estimated monthly payment is approximately CAD $3,131.98.
Across 60 scheduled payments, the customer would repay approximately CAD $187,919.08, including about CAD $37,919.08 of interest.
Assume a separate hypothetical CAD $2,000 documentation or origination fee paid at closing.
Including the CAD $30,000 customer contribution, scheduled payments and assumed fee, total cash outlay would be approximately CAD $219,919.08 before applicable sales taxes and excluded costs.
The example excludes GST/HST/PST/QST, freight, installation, flooring, construction, insurance, maintenance, warranties, legal expenses and security-registration costs.
Because the separate fee has not been incorporated into the stated nominal rate, 9.25% should not be described as an all-in APR.
Now test the cash-flow impact.
If the gym normally has CAD $12,000 per month remaining after ordinary operating expenses and existing scheduled debt, the new equipment payment reduces that cushion to approximately CAD $8,868.02.
The operator should stress-test that amount during a weaker membership month and after a major repair expense.
Canadian suppliers and buyers can test alternative purchase prices, down payments and terms using Mehmi's Equipment Financing Calculator. The calculator is denominated in CAD, excludes applicable sales taxes and produces estimates rather than financing offers. Mehmi Financial Group
This example is illustrative only. It is not a Mehmi Financial Group rate, approval, customer result or financing offer.
Commercial equipment financing in the United States can involve a security interest under Article 9 of the Uniform Commercial Code.
The Uniform Law Commission describes Article 9 as the statutory framework governing credit secured by personal property, with states maintaining filing systems that publicly disclose security interests. Uniform Law Commission
That can matter when a gym already has bank debt.
Its bank may hold a broad UCC security interest covering business equipment.
A new financing provider then has to determine whether its required position can be obtained and whether any consent, release or other arrangement is necessary.
The supplier should provide accurate legal business information and detailed equipment descriptions.
It should not promise that an existing lien "will not matter."
The financing provider should make that determination.
U.S. product and geographic availability can also vary by state and transaction. Mehmi's current public disclaimer says its U.S. commercial-financing activity is subject to product, borrower-location and regulatory availability. Mehmi Financial Group
Canada uses provincial personal-property security systems rather than simply copying the U.S. UCC structure.
Ontario's Personal Property Security Registration system allows creditors to register notices of security interests in personal property used as collateral. It also allows searches for existing liens, which can matter when used equipment changes hands. Ontario Canada
Quebec uses the RDPRM, or Register of Personal and Movable Real Rights. Quebec's Ministry of Justice states that rights registered there can include movable hypothecs, reservations of ownership and certain long-term lease rights affecting commercial goods such as equipment and inventory. Ressources naturelles et Faune
Other provinces have their own PPSA-based systems and procedures.
The financing provider should determine the appropriate registration for the customer's province and financing structure.
The supplier's job is to make sure customer legal names, equipment descriptions and serial numbers are accurate.
When the transaction satisfies the financing provider's funding conditions.
Credit approval may still be followed by requests for signed documents, proof of contribution, insurance, final equipment schedules, serial numbers or proof of delivery.
Installation can create another step.
If the financing is conditioned on customer acceptance, the supplier may need the buyer to confirm that the equipment was received and installed before final payout.
That should be agreed before shipping.
Mehmi's How Vendors Get Paid When Customers Finance guide explains delivery, acceptance and progress-payment structures in greater detail.
For suppliers creating the entire program from scratch, Mehmi's How Vendor Financing Programs Work in Canada guide provides the broader operating framework.
Financing should make a viable equipment purchase easier.
It should not be used to make an oversized gym project appear affordable.
A startup may be better served by purchasing fewer machines initially and retaining more opening liquidity.
An established club may be better off replacing its highest-maintenance cardio equipment first rather than refreshing the entire facility simultaneously.
Used commercial strength equipment can be a sensible lower-cost alternative when condition and ownership are clear.
The customer may also decide to rent selected equipment or stage a second-location rollout instead of financing everything on opening day.
Be particularly cautious when the proposed repayment only works if optimistic membership targets are achieved immediately.
Another lender's willingness to review the transaction does not turn an unrealistic operating plan into sustainable cash flow.
Yes. Suppliers can work with commercial lenders, lessors or a financing brokerage while remaining the equipment seller. Independent financing providers still make their own credit, pricing and funding decisions.
Potentially. A provider may review owner experience, credit, liquidity, facility lease, opening budget, customer contribution, franchise support where applicable and the quality of the equipment. There is no universal startup approval threshold.
Potentially. A full commercial gym package can be evaluated as one transaction, but the supplier should still provide an itemized equipment schedule so credit knows what is included.
Sometimes. Some providers may include qualifying delivery, setup, flooring or related soft costs, while leasehold improvements and construction can require a different structure. Itemize the costs before promising the customer they will be included.
Potentially. Age, condition, maintenance history, manufacturer support, seller quality, ownership and remaining useful life generally receive more attention on used equipment.
Potentially. Larger programs may use separate schedules or staged funding as equipment is delivered to different locations. The delivery plan should be disclosed before financing documents are finalized.
Not solely because an approval has been issued. Confirm that the financing provider's documentation, contribution, insurance, delivery and funding conditions have been satisfied before releasing a high-value order.
Potentially, but the legal and operational workflows should remain jurisdiction-specific. U.S. secured equipment financing commonly uses UCC Article 9 concepts, while Canadian transactions generally use provincial PPSA systems and Quebec's RDPRM. Currency, taxes and provider availability also differ.
A strong fitness-equipment supplier financing program does more than put "monthly payments available" on a quote.
It identifies which assets are being financed, separates hard equipment from build-out, considers whether the customer is a startup or established operator, matches the term to realistic replacement cycles, and defines exactly what must happen before the supplier gets paid.
Mehmi Financial Group operates as a commercial financing brokerage and intermediary, not a direct lender. Independent financing providers establish their own underwriting criteria, pricing, documentation requirements, approval conditions and final funding decisions. Mehmi Financial Group Mehmi's current vendor-program page confirms that it supports financing workflows for businesses selling equipment across Canada and the United States. Mehmi Financial Group
Fitness equipment suppliers interested in discussing a customer financing program should be ready to provide the typical financing amount, whether customers are in the United States or Canada, the relevant state or province, the fitness equipment being sold, the customer's use of funds, and the expected delivery, installation or rollout timing.
Call Mehmi Financial Group at 833-863-4644 or use the verified Mehmi Financial Group contact page to discuss the program and current geographic and product availability. The current contact page confirms the toll-free number. Mehmi Financial Group
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