Reformer Pilates Finance

Reformer Pilates Finance 

With its meteoric rise in popularity, Reformer Pilates studios are popping up in great numbers across the UK. Industry growth has enticed investors and lenders alike, as the commercial potential of the exercise continues to expand. 

At Mill Wood Finance, we specialise in sourcing the most suitable finance for Reformer Pilates studios. Our 30 year expertise in financing large commercial exercise equipment projects has allowed us to foster significant relationships with a panel of lenders who have a strong appetite for reformer equipment finance. 

What finance is available for reformer pilates studios? 

There are a number of different financial products suited to your pilates studio, your suitability depends on your specific requirements and your unique commercial position: 

New Start Reformer Pilates Studio Business Loans 

Providing your startup access to funding to open your first studio.

• Unsecured business loans: No collateral required, but typically come with a higher interest rate. 
• Secured business loans: Backed by collateral (i.e. personal guarantee in the form of a significant asset). 
  
  

How it works: 

You receive a pre-agreed amount of funding in full, that you pay back over a fixed term with additional interest payments on top. 

New Start Reformer Pilates Business loans are most suited to: 

• When you have a great idea for a studio, but you are unable to fund the entire project yourself.
• Start up reformer studios that wish to finance equipment and inject cash into other areas of the business.
  
  

Business Loans: 

Providing you access to funding to open an additional studio/expand your current operation. 

• Unsecured business loans: No collateral required, but typically come with a higher interest rate. 
• Secured business loans: Backed by collateral (i.e. personal guarantee in the form of a significant asset). 
  
  

How it works: 

You receive a pre-agreed amount of funding in full, that you pay back over a fixed term with additional interest payments on top. 

Business loans are most suited to: 

• Studio owners with a solid credit history and evidence of stable revenue
• Studios that wish to finance equipment plus inject cash into other areas of the business
  
  

Asset Finance: 

A tailored finance solution specifically for purchasing business assets like reformer pilates beds (as well as other assets like coffee machines, vending machines etc.). 

Asset finance for Pilates equipment: how it works – 

The finance company buys the equipment and leases it to you for an agreed time period. Depending on the structure of the terms, at the end of the agreement you may either:

• Retain ownership of the asset (usually through a transfer of title payment) 
• Return the asset to the finance company that initially purchased it
  
  

Types of lease and how they work: 

Finance Lease: 

You use the equipment for an agreed time period, and eventually own the asset at the end of the agreement. 

Operating Lease: 

Similar to renting the equipment, you lease reformer beds for an agreed time period, before returning them to the finance company at the end of the term. 

Hire Purchase (explained next): 

Effectively a ‘rent-to-own’ scheme. You rent the equipment for an agreed time period, before a final payment which transfers ownership of the asset from the finance company to your business at the end of the agreement. 

Benefits of leasing: 

Minimise the upfront costs of acquiring commercial assets/equipment, so you can deploy cash in other areas of your business. 

Flexible terms that often align with lifespan of the equipment: allowing your business to stay ahead with the latest technology and innovations in the Reformer Pilates industry. 

No requirement to commit to ownership, meaning if you just wish to ‘rent’ equipment, leasing facilitates that for you. 

Typically a more seamless process to getting approval when compared to a traditional business loan.

Hire Purchase (HP) 

A solution designed to allow you to own the equipment at the end of the repayment term. Once you make the final payment, ownership of the equipment is transferred to you.

How Hire Purchase for Reformer Pilates works: 

• HP typically allows for a small or zero deposit option. 
• You pay for the equipment in fixed monthly payments over an agreed time period (usually between 1-5 years).
• You become the owner of the asset once you have made your final repayment at the end of the term. 
  
  

Benefits of Hire Purchase: 

• Spread the costs of owning a significant asset 
• Able to buy the asset during the agreement term, usually ownership is transferred after making what’s known as a ‘balloon payment’. 
• Access to previously unaffordable equipment 
  
  

Studio Fit-Out Finance

Ideal for startup/new site reformer pilates studios. A finance product designed to cover outfitting a new studio; including flooring, mirrors, lighting, heating and equipment. 

How Reformer Pilates studio fit-out finance works: 

• Broader than asset finance – fit-out finance covers renovations too. 

• Often presented in combination with other equipment finance in order to help new studios spread the cost of starting up.

• You pay for the fit-out over an agreed term, and make monthly repayments including interest. 

• Ideal for startup studios or rapidly expanding reformer pilates businesses. 
  
  

Benefits of Fit-out Finance: 

• Build your studio exactly how you want it:

Spreading the cost over monthly repayments means you can have your desired studio from day one, you do not have to sacrifice quality/neglect one area of your studio upon opening in order to save money. Instead, the finance company funds the fit out, and you pay for it over an agreed term in affordable monthly repayments. 

• Preserve Cash Flow:  

Avoid tying up large sums of cash reserves in assets in a single payment. Instead, keep funds available for day-to-day business operations like payroll and utilities. 

• Accurately budget the cost of fitting your studio: 

Prior to applying for fit out finance you will need to source suppliers for reformer pilates equipment, and any additional amenities you would like to showcase at your studio. Once you know the costs, you apply for finance, and the finance terms are drawn up in order to help make your fit-out as affordable as possible. No hidden costs. 

• Flexibility to upgrade assets: 

Allows your business to phase the upgrading of equipment and amenities. Providing access to necessary assets without immediate full payment. 

Reformer Pilates Studios present an exciting business opportunity. The commercial potential of the practice, its wellness and health benefits, and the community it provides – all contribute to an explosion in popularity and take up of the exercise, particularly over the last 24 months. 

Whilst they present fantastic commercial potential, reformer pilates studios finance can be a tricky minefield to navigate, with various products each pertaining to your unique commercial position. 

In addition, the significant front-end costs associated with opening a pilates studio can deter potential operators. Whilst it is true that the costs are significant, having an experienced finance broker, who takes time to understand your requirements and current position in the market, will help you to source the most suitable finance for your studio. 

Mill Wood Finance is proud to support the wellness industry. 

Expert guidance

Mill Wood will guide you throughout the process to ensure you have everything in place, giving you the best chance for approval. We deeply understand our market after 30 years in operation. 

Post-finance care

Working with Mill Wood doesn’t end at deal approval. We are on hand to help you throughout the course of your finance. Feel free to give us a call/email at any time during the process if you have any questions. 

Reformer Pilates studio finance presents a significant undertaking for any studio. With many funding options available in the UK market, the key is to choose a structure that matches your financial capability and suits the nature of your studio.

If you’re considering reformer pilates finance and would like us to guide you through your funding, contact Mill Wood below. Our dedicated brokers will help you navigate your options and find suitable finance tailored to your requirements.