Running a health and wellness business — whether a gym, fitness studio, spa, or salon — is capital-intensive from day one. Equipment, commercial real estate, buildouts, and staffing all demand significant investment before revenue has a chance to catch up. 

The global health and fitness club market was valued at $131.31 billion in 2025 and is projected to reach $244.70 billion by 2032, driven by record membership growth and rising consumer demand for wellness services. Yet even in a thriving market, access to the right financing at the right time is often what makes sustained growth possible. Understanding your options clearly, and before you need them, is where that confidence starts. 

This guide breaks down why health and wellness businesses face real financing pressures, and what owners should understand before deciding how to fund their growth.

Why health and wellness businesses face unique financing pressures.

Most small businesses need some capital to get started. Health and wellness businesses tend to need quite a lot of it — and they need it before the revenue to support it has fully materialized. A few structural factors drive this.

High upfront equipment costs

Outfitting a commercial gym can require $50,000 on the low end and $500,000 or more for a full-service facility. A boutique fitness studio typically requires around $330,000 in startup capital; a bouldering gym can top $600,000 before the first member signs up.

Spa and salon equipment like treatment tables, styling stations, specialty tools, carries its own capital demands. And because commercial fitness equipment depreciates quickly and has a finite useful life, the capital need doesn’t end at launch.

Commercial real estate requirements

Wellness businesses are inherently place-dependent. A gym can’t operate from a co-working space. Commercial real estate rental for a fitness facility typically runs $45,000 to $90,000 per year, and purchasing a building usually requires a down payment of $105,000 to $150,000. 

Most spaces also require significant buildout work: specialized flooring, ventilation, plumbing for spa facilities, and electrical systems, before they’re usable. That renovation cost is rarely reflected in the lease price.

Slow path to break-even

Membership-based businesses build revenue gradually. Most new gyms take 6 to 12 months to reach break-even on membership revenue, and the full return on initial investment often takes four to eight years. During that ramp-up period, operating expenses — rent, payroll, utilities, insurance — run at full speed. For appointment-based wellness businesses like spas and salons, revenue can be less predictable still, rising and falling with seasonal demand and client retention.

Ongoing staffing costs

Qualified fitness instructors, personal trainers, estheticians, and licensed therapists command competitive wages and are in consistent demand. Labor is often the largest single ongoing expense for a health and wellness business, and maintaining the right staffing level while managing cash flow is a challenge most operators face throughout their business’s life.

These aren’t signs of a poorly run business. They’re the structural realities of an industry that requires real assets, real space, and real people — all of which cost real money.

Common financial needs for gyms, spas, and studios.

The financing needs of a health and wellness business change depending on where you are in your journey. But a few categories show up consistently, regardless of business type or stage:

  • Equipment acquisition and replacement. Whether you’re opening a new studio or replacing aging machines at an established gym, equipment is frequently the largest single capital need. Commercial fitness equipment depreciates to roughly 40–60% of its original value once used, which creates ongoing replacement cycles that operational revenue alone may not fully cover.
  • Commercial real estate. Many wellness business owners reach a point where buying their space makes more financial sense than continuing to rent. Purchasing a building or funding a major renovation is often the most significant long-term investment a wellness business makes.
  • Buildout and renovation. Adapting a commercial space for wellness-specific use — from locker rooms and treatment suites to specialty flooring and reception areas — typically requires substantial capital before a single client appointment is booked.
  • Working capital. Covering day-to-day expenses — payroll, supplies, retail inventory, utilities — is a persistent need, especially during a launch period, a slow season, or a period of rapid growth when cash is temporarily tied up.
  • Business expansion. Opening a second location, adding a new service line, or renovating an existing facility creates capital demands that ongoing revenue may not absorb quickly enough without outside support.
  • ‍Debt refinancing. Wellness businesses that used short-term or higher-cost financing in their early stages sometimes benefit from restructuring that debt into longer-term arrangements, reducing monthly obligations and improving overall cash flow.

Key considerations before choosing financing.

Choosing a financing option isn’t just about who will approve you — it’s about structuring a financial commitment that fits your business model. A few questions are worth thinking through carefully before you move forward.

  • How predictable is your cash flow? Membership-driven businesses have relatively stable monthly revenue, which tends to support fixed monthly payments more comfortably. Appointment-based businesses may experience more variability. The more predictable your revenue, the wider your range of financing options.
  • Does the repayment term match the asset’s useful life? Equipment expected to last 10 years is a different financing decision than a short-term inventory purchase. Generally, the repayment period should align with how long the funded asset will generate value for your business.
  • How much can you put down? Most long-term financing options require a down payment, typically 10% to 20% of the loan amount. Your available upfront capital influences both the options available to you and your total cost of borrowing.
  • What does your credit and financial history look like? Lenders evaluate personal credit scores, business credit, time in operation, and revenue history. Businesses with two or more years of operating history and consistent revenue will generally access more favorable terms than startups, though options exist for newer businesses as well.
  • What collateral can you offer? Larger financing amounts typically require collateral — equipment, real estate, or other business assets. Understanding what you can put up, and what you’re comfortable committing, is an important step before signing anything.
  • How quickly do you need the funds? Some financing options move in days. Others, particularly those backed by government programs with longer repayment terms, can take 30 to 90 days to close. If your need is time-sensitive, timeline matters as much as rate and term.

How health and wellness businesses typically access financing.

Several financing structures are commonly used by gyms, spas, fitness studios, and salons. Each has different characteristics that affect cost, flexibility, and repayment — and the right fit depends on your specific situation.

SBA loan programs

Federal programs administered through approved lenders are among the most widely used financing options for health and wellness businesses. They typically offer longer repayment terms — up to 10 years for equipment and working capital, and up to 25 years for real estate — and broader flexibility in how funds can be used. 

According to SBA 7(a) FOIA loan data (FY2025, NAICS 71390) in 2025, approved lenders deployed over $660 million in government-backed small business loans across fitness businesses alone, with an average loan size of $410,800 — a volume that reflects genuine lender appetite for this industry. These programs tend to be better suited to larger capital needs where the longer repayment term meaningfully reduces the monthly burden. The application process is more thorough and timelines are longer than other options, so they reward preparation.

Equipment-specific financing

Lenders and equipment manufacturers often offer financing tied directly to the asset being purchased. These arrangements can be efficient for focused equipment needs and may require less documentation, though terms tend to be shorter and closely tied to the equipment’s depreciated value.

Business lines of credit

A revolving credit line gives you access to capital as needed — meaning you can draw funds, repay them, and draw again as your needs change. You pay interest only on what you use, which makes it a flexible tool for working capital, supplies, and seasonal gaps.

Short-term business loans

Faster to obtain and with more flexible credit requirements than long-term programs, short-term loans are better suited to specific, near-term needs than major capital investments. They typically carry higher costs, so understanding the total repayment amount (not just the monthly figure) is important.

Revenue-based financing 

Some wellness businesses use financing structures tied to a percentage of monthly revenue. Payments flex with income, which can ease pressure during slow periods — though overall cost tends to be higher than term-based alternatives.

The right structure depends on how much you need, what you’re funding, how quickly you need it, and what your business can realistically support in repayment. Comparing total cost — not just monthly payment — across options is the most reliable way to make an informed decision.

Key Takeaways

Health and wellness businesses face real, structural financing challenges — and financing options exist to address each of them.

  • The industry is growing rapidly, but capital intensity in equipment, real estate, and buildout means most wellness businesses will need outside financing at some point.
  • Common needs include equipment, commercial real estate, working capital, expansion capital, and debt refinancing — and these needs evolve as your business grows.
  • Before choosing a financing structure, align the repayment term with the useful life of what you’re funding and evaluate total cost of borrowing, not just monthly payment.
  • Government-backed programs offer longer terms and broader use-of-funds flexibility, but come with more documentation requirements and longer approval timelines.
  • The right financing fit depends on your specific situation — how predictable your cash flow is, how much you can put down, and what you’re funding.

Sources

U.S. Small Business Administration. (2025). 7(a) & 504 FOIA loan data [FY2020-Present, as of December 31, 2025]. Retrieved from:https://data.sba.gov/en/dataset/7-a-504-foia/

Methodology Note:Loan data referenced in this article was sourced directly from the U.S. Small Business Administration's publicly available 7(a) FOIA dataset (fiscal year 2025, as of December 31, 2025). Figures were filtered to NAICS code 713940 (Fitness and Recreational Sports Centers), which includes gyms, health clubs, and similar facilities. This classification does not capture all fitness-related businesses — personal trainers, yoga studios, and other fitness-adjacent businesses are classified under separate NAICS codes and are not reflected in these figures.