Fitness Equipment Leasing Company

Industry Overview

In 2019, the UK commercial fitness equipment market was worth an estimated £218m

There are no official figures, but we estimate that 40% (£87m) was put onto lease finance.

Business Description

A better option - Recognising fitness equipment as a hard asset and provide industry beating leasing rates.

How it works:

• Use private funding instead of traditional funders.
• Recognise gym equipment as a hard asset and provide a residual value.
• Use an existing broker partner to set up FCA approved leasing and to collect payments.
• Offer customers a 'balloon payment' to purchase the equipment at end of term or sell on to a trade partner.

As with all leasing of this type, we require personal guarantees against individuals with property to mitigate the risk of deafult.

Financial Summary

Customers save 21% on their average monthly payments.
Customers save £31k on their average term.

For our profitable customers, we can provide a solution 11% cheaper than a cash purchase.

Investment Rationale

We have great ways to grow:

• Gym equipment manufacturers represent 72% of market sales. Our team already work with the senior teams on a regular basis.
• Gym equipment distributors are a significant route to market and currently use traditional leasing.
• Health Club chains - some still choose to capex their equipment. An 11% saving will provide an incentive to consider a change in buying habits.

We have in-depth knowledge of the sector and access to senior contacts.