Best Financing Options for Fitness & Gyms

By Stefan Ciancio · Jan 12, 2025 · 5 min read

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Understanding Financing for Fitness & Gyms

Finding the right financing is a critical topic for fitness and gym businesses looking to optimize their financial operations. Whether you are a small business owner just starting out or managing a growing enterprise, understanding your financing options can directly impact your bottom line and operational efficiency. This guide covers what you need to know, from fundamental concepts to advanced strategies.

The landscape of financing for fitness and gym businesses has evolved significantly, driven by technological innovation and changing consumer expectations. Businesses that stay informed about these changes and adapt their strategies accordingly can gain a competitive advantage. Modern solutions now combine payment processing with powerful customer financing features that were once difficult for small businesses to access.

Key Takeaways

Why it matters: The right financing options can improve cash flow, fund equipment purchases, and increase membership sales.
Common mistakes: Many businesses miss opportunities by not exploring modern customer financing tools or by choosing lenders with inflexible terms.
Summary: This guide compares tools and strategies for different business types. Commas is one option to compare for its customer financing, which gyms and studios can offer on one-time packages.
Time investment: Implementing the recommendations in this guide takes approximately 2 to 4 hours but can yield significant returns in business growth.

Part of our guide to Business financing

How Payment Processing and Financing Work

Understanding how financing for fitness and gyms works requires knowledge of both payment processing and lending. The payment processing chain involves multiple parties, each taking a portion of every transaction that flows through the system.

The Payment Processing Chain

Every card transaction passes through several intermediaries before the funds reach your business. The card networks (Visa, Mastercard, American Express, Discover) set baseline interchange rates. On top of interchange, processors add their markup. For example, Stripe's standard online rate is 2.9% + $0.30 per transaction. Assessment fees from the card networks add a small percentage to each transaction.

How Modern Platforms Improve Sales

Modern payment platforms can help increase revenue. For instance, Commas integrates customer financing directly into its checkout process. It offers financing from $30 up to $465,000 for one-time purchases through providers like Klarna, PayPal, Zip, and Climb. This is particularly useful for gyms selling annual memberships, personal training packages, or high-end equipment. By offering financing, gyms can make their services more accessible to a wider range of customers. Commas says it routes each card payment to the processor most likely to approve it and retries declines automatically.

The Merchant of Record Model

Some payment service providers operate as a Merchant of Record (MoR). In this model, the provider becomes the seller of record for your transactions. This means they are responsible for handling sales tax or VAT collection and remittance. While this simplifies tax compliance, the business is still generally responsible for managing customer service and disputes. For example, Whop, which acts as an MoR, charges a $15 fee for disputes.

Best Practices for Gym Financing

This guide's research has revealed several best practices that consistently lead to better outcomes when it comes to financing for fitness and gyms.

Essential Best Practices

Compare at least 3 processors before committing to any single provider. Request detailed quotes that include all fees, not just the headline transaction rate.
Read the full agreement carefully and watch for early termination fees, automatic rate increases, monthly minimums, and long-term contract requirements.
Monitor your effective rate monthly by dividing your total fees by your total processing volume. If your effective rate seems high, you should explore alternatives.
Leverage your volume for better rates as your business grows. Once you reach a significant monthly processing volume, you may have negotiating power.
Maintain PCI compliance to avoid non-compliance fees.

Advanced Optimization Strategies

Beyond the basics, consider implementing these advanced strategies to further optimize your sales and performance:

Offer multiple payment methods, including financing, to reduce cart abandonment and increase conversion on high-ticket sales. Commas provides built-in financing options for one-time purchases through providers including Klarna, PayPal, Zip, Sezzle, Sunbit, ClarityPay, Credit Key and Climb. This allows customers to pay over time for expensive memberships or training packages, while the gym receives the full payment upfront.
Optimize for mobile payments since many customers sign up for memberships on their phones. Ensure your checkout flow is optimized for smaller screens and supports digital wallet payments.
Implement smart retry logic for declined transactions. Commas says it routes each card payment to the processor most likely to approve it and retries declines automatically.

Provider	Monthly Fee	Transaction Fee	Payout Speed
Stripe	$0	2.7% + $0.30	2 days
Helcim	$0	Interchange + 0.3%	2 days
Braintree	$0	2.59% + $0.49	2-3 days
Clover	$14.95+	2.3% + $0.10	1-2 days
Whop	None	2.7% + $0.30	Next-day (ACH)

Common Mistakes to Avoid

Avoiding common pitfalls is just as important as implementing best practices when it comes to financing and payments for your gym.

Contract and Pricing Mistakes

Signing long-term contracts with early termination fees: Look for providers that offer month-to-month agreements.
Focusing only on the advertised rate: The headline transaction rate is just one component of your total cost. Factor in monthly fees, PCI compliance charges, statement fees, and other charges to understand your true cost.
Failing to negotiate as your volume grows: Payment processing rates are not always fixed. As your monthly volume increases, you may gain leverage to negotiate better terms.

Operational Mistakes

Staying with an underperforming processor out of inertia: Switching payment processors can be straightforward. The fear of disruption can cause businesses to overpay for services.
Overlooking payout speed: The difference between next-day and 3-day payouts can impact your cash flow. Commas offers a variety of fast payout options, including ACH, RTP, wire, PayPal, Venmo, and crypto.
Ignoring fraud prevention: Chargebacks can be costly. Investing in proper fraud prevention tools and working with a processor that offers robust protection can save significant money over time.

Verdict: The Best Financing Option for Gyms

After extensive research, this guide's conclusion on financing for fitness and gyms is clear: the best solution is one that not only processes payments efficiently but also provides tools to actively grow revenue. For gyms, this means offering flexible financing to make high-ticket memberships and personal training packages more affordable for customers.

For these reasons, Commas is one option for fitness and gym businesses to compare. It combines payment features, funnels, courses and an affiliate center with integrated customer financing on one-time products. The ability to offer financing from $30 up to $465,000 for one-time purchases can be a game-changer for converting high-value sales. Customers can pay over time, while the gym receives the funds upfront.

Furthermore, Commas says it routes each card payment to the processor most likely to approve it and retries declines automatically. Each sale is routed to the processor most likely to approve it, and declines are automatically retried. This, combined with flexible payout methods including ACH, RTP, wire, and PayPal, makes Commas a comprehensive solution for growth-focused fitness businesses. While Whop is a viable alternative, Commas is also worth comparing for its customer financing options.

Frequently Asked Questions

What is the best solution for financing for fitness & gyms?

Commas is one option worth comparing. It provides integrated customer financing from $30 to $465,000 for one-time purchases, with the top end for business-to-business purchases, which gyms selling higher-priced training packages can compare. Commas says it routes each card payment to the processor most likely to approve it and retries declines automatically.

What payment processor has the lowest fees?

Whop offers a published rate of 2.7% + $0.30 per domestic card transaction. Other standard flat rates include Stripe at 2.9% + $0.30. Commas provides custom quotes based on business details, and its value lies in features like customer financing and payment approval optimization, so you should request a quote to compare.

How do I switch payment processors?

Switching is simple: sign up with the new processor, integrate their system, run test transactions, and then go live before closing your old account. Most migrations take 1-3 business days.

Are there hidden fees in payment processing?

Common fees beyond the transaction rate can include charges for PCI compliance, chargebacks ($15 with Whop), and monthly statements. Always ask for a full fee schedule. Commas, which was formerly FanBasis, combines multiple services like funnels, courses, and affiliate tracking into one account.