Programme: ENABLE Funding
Aberbargoed-based Planet Fitness is an independent gym which has been trading for 20 years.
After identifying a suitable site for a second gym in Tredegar, they approached British Business Bank ENABLE Funding partner Propel Finance for asset finance.
Having already used asset financing in the past for their existing gym equipment, they secured £450k of asset finance in March 2018 to purchase the latest gym equipment, air conditioning and fixtures and fittings for their new site.
This enabled Planet Fitness to open their new 40,000 sq ft second site, which is almost double the size of its existing gym. Already at capacity at the original gym, the new site has allowed the company to increase overall membership and has already attracted 2,000 new members. The opening of the new gym has also meant the company has created 4 new full-time jobs, as well as hiring additional part time staff members.
Director David Jones said “In addition to the initial investment, we also received valuable business advice from Propel Finance. Our advisor made several site visits and talked us through requirements and the funding options available. We now have a strong relationship moving forward and know we can rely on Propel for further investment in the future.”
While it was challenging to open the new gym within the set timescales, Jones describes the application for funding as “very straightforward”. For smaller businesses looking for asset finance he offers this advice: “I would thoroughly recommend talking to similar small businesses about their funding experiences, and also speaking to your accountant”.
The company is now on the lookout for potential locations for new outlets.