What Is a CDFI Loan?

 

You may have heard of CDFI loans, but you may not know what they are or how they can benefit your business. So, what is a CDFI loan? It is offered by Community Development Finance Institutions or CDFIs. They serve about 84% of low-income earning individuals, so the loans act as capital for existing businesses.

CDFi loans offer low-interest rates, flexible repayment terms, and no prepayment penalties. The application process is also quick and easy, reflecting the unique challenges that small businesses face. Keep reading to learn more about what a CDFI loan is, its pros and cons, and how to apply for one.

Types of Loans Offered By CDFIs

There are a variety of loans offered by CDFIs, including:

 

• Start-Up
• Expansion
• Working capital
• Real estate
• Recovery and relief

Each type of loan has its unique benefits, and it’s essential to choose a program that is best suited for your business or other community development projects.

Contact a CDFI lender in your area to learn more about the loans they offer.

CDFI Loan Requirements?

Your business must meet specific requirements to be eligible for a CDFI loan.

The location of the business should be in a low-income or distressed community. You also need to be engaged in sustainable economic development activities, such as job creation, employee training, or the promotion of entrepreneurship.

Your business should have a strong credit history and be able to repay the loan on time. CDFI loans are typically unavailable to businesses in financial difficulty.

How To Apply for a CDFI Loan?

To apply for a CDFI certification, you must provide the lender with basic information about your business. These details include your company name, address, contact information, and years in business.

Also, you need to provide documentation of the business’ financials, such as the most recent income tax return and balance sheet.

The lender will review the application and, if approved, give you the chance to discuss and create a repayment plan that fits your business needs.

How Can a CDFI Loan Benefit Your Business?

A CDFI loan can benefit your business in several ways.

Affordability

CDFI loans are more affordable than traditional options. In addition, they offer lower interest rates and longer repayment terms, which can help to manage your cash flow.

Availability

CDFI loans are available to businesses of all sizes, including startups and minority-owned ventures, which often have difficulty securing funding from traditional lenders.

Government Owned

With backup from the government, CDFI loan repayment guarantees you the confidence to invest in your business without worrying about the possibility of default.

What Are the Terms of a CDFI Loan?

The terms of a CDFI loan are more favorable than traditional bank loans, and the application process is more straightforward.

Private investors fund CDFI loans, so you don’t have to go through a bank for loan processing. This approach means obtaining a loan for business growth and expansion is relatively easy, and you won’t be required to deal with red tape and long wait times.

Where Can You Find a CDFI Lender?

Community Development Financial Institutions (CDFIs) are the lenders that offer loans to support small businesses financially. Most of these are government-owned and accessible in many areas, especially low-income ones.

You can find a list of CDFI lenders on the Community Development Financial Institutions Fund website.

CDFI Loans Pros and Cons for Small Businesses

So, is a CDFI loan right for you? Only you can decide that. But it’s essential to weigh all the pros and cons before deciding.

Pros

When it comes to pros, CDFI loans are particularly advantageous due to their low-interest rates, straightforward approval, and relatively few risks.

Low-Interest Rates

CDFIs offer low-interest rates to small businesses and a flexible repayment period. Smaller businesses can thus be better equipped to grow without the strain of dealing with an unfavorable loan.

Easy Approval

Loan approval requirements are accessible, unlike other institutions such as banks.

Minimal Risks

A CDFI loan offers a fixed interest rate. Customers know what they have to pay, so don’t have to navigate uncertainty for this source of financing.

Cons

While CDFI loans can be beneficial, there are a few cons.

Long Application Process

CDFIs have fewer assets; hence, the loan application process takes longer than banks.

Limited Availability

You may not be eligible for the subsidy if you don’t live in a target area.

What Is the Difference Between a Bank and a CDFI?

A bank is a profit-making institution in the business of making money. A CDFI, on the other hand, is a nonprofit organization focused on helping small businesses and low-income communities.

There are many types of CDFIs, but they are all mission-driven organizations offering various products and services. For example, they can provide you with a lower interest rate on your loan, help you find funding for your business, and give you technical assistance and training.

Some CDFIs participate in the SBA small business loan program.

If you’re wondering how to become a CDFI, a business needs to apply to the CDFI Fund and meet specific criteria. What is the benefit of being a CDFI? Well, CDFI certification opens up the door to government funding from the US Treasury Department.

What Are Some of CDFIs Success Stories

Many smaller businesses struggle to get traditional loans, so it’s unsurprising there are plenty of success stories involving CDFI loans. These businesses received the financing necessary to grow, including:

• A manufacturing company that used a CDFI loan to purchase new equipment, allowing them to increase their productivity and create more jobs.
• A woman-owned construction company that used a CDFI loan to expand their business, hire more employees, and purchase new equipment.
• A small grocery store that used a CDFI loan to renovate and increase their inventory.

Conclusion

Now you have the answer to the question “what is a CDFI loan?” This kind of loan can be an excellent way for small businesses to get the financing they need to grow and expand.

These loans are for businesses from underserved areas or within specific categories, such as companies owned by women and minorities. If you’re looking for a loan to help your business reach its full potential, a CDFI loan could be the perfect option.

Click here for more details on financing options or call 214-629-7223 or email jthomas@fmconsulting.net for more information. Or, apply now.

An Outsourced CEO and expert witness, Jim Thomas is the founder and president of Fitness Management USA Inc., a management consulting, turnaround, financing  and brokerage firm specializing in the gym and sports industry. With more than 25 years of experience owning, operating and managing clubs of all sizes, Thomas lectures and delivers seminars, webinars and workshops across the globe on the practical skills required to successfully overcome obscurity, improve sales, build teamwork and market fitness programs and products. Visit his Web site at: www.fmconsulting.net or www.youtube.com/gymconsultant.

Have Your Gym Membership Sales Stalled?

This is all too common. We receive a phone call from a club owner who indicates they need help with marketing. They don’t have enough people to talk to. Now, at a certain level, this may be true, but when you investigate further, you find they have cracks in their sales process and marketing foundation. That’s what needs to be fixed first; otherwise you’re simply driving additional guest traffic into a broken system. The business of your gym is either trending up or it’s on the way down. Growing and making improvements to the business of your gym is a choice. The key is to choose the right area of your business that will make the necessary impact. Here are some things to think about.

1. Track Your Numbers: It’s always interesting to see how few independently owned gyms know their daily, weekly, and monthly sales and production numbers and member attrition trends. How can you expect to fix something if you don’t know where you’re at? You can’t guess at it and conditions will continually change.
2. Expectations and Goals: This is a crucial element of gym success for the independent owner. I had a meeting with a club owner recently and he expressed his frustration that his staff was not hitting their numbers….when the staff was asked what their goals were, they were unclear of expectation.
3. Use Proven Marketing Programs: Do not know where to start? If you’re not sure, this is an area to get some help, but you want proven marketing programs. If you’re trying to get your gym business back on track, now is not the time for trial and error.
4. Know How to Give a Tour and Membership Presentation: If you don’t learn the proper sales process, you’ll find yourself simply making it up as you go along. At its core, you need to be sure you’re selling the benefits of your gym and not the features.
5. Know the Industry Trends: The way you run your business will continually change and you must keep up. As hard as it is to believe, there are still clubs that don’t understand their web site analytics, have a web site that is not mobile friendly, don’t have a club app…well, you get the picture.
6. Regular Sales Training: This is no different than any other profession; you and your team must continue the educational process with daily sales training. You must focus on sales improvement and the accountability to the process.

Now, go improve your gym!

Click here for more details on financing options or call 214-629-7223 or email jthomas@fmconsulting.net for more information. Or, apply now.

An Outsourced CEO and expert witness, Jim Thomas is the founder and president of Fitness Management USA Inc., a management consulting, turnaround, financing  and brokerage firm specializing in the gym and sports industry. With more than 25 years of experience owning, operating and managing clubs of all sizes, Thomas lectures and delivers seminars, webinars and workshops across the globe on the practical skills required to successfully overcome obscurity, improve sales, build teamwork and market fitness programs and products. Visit his Web site at: www.fmconsulting.net or www.youtube.com/gymconsultant.

How NOT to Conduct a Sales Meeting

 

As I travel the country and have the opportunity to sit in on numerous sales meetings, I have noticed an all too common occurrence in health clubs… the majority of the club sales staff have a genuine dislike for the meetings.

Most health club salespeople don’t know why they are being asked to sit through weekly or monthly meetings. From their viewpoint, these sales meetings consisted of nothing but boring discussions without meaningful decisions, bull sessions about the local sports team or unresolved debate.

After giving this some thought, here is what I observed about how NOT to conduct a health club sales meeting:

1. No advanced agenda for the sales meeting.
2. This is very common as many health club managers will simply try and “wing it.” Your health club sales staff will be unable to contribute effectively to a particular discussion because they won’t know the subject matter in advance. The idea is to put your salespeople in a position to be successful. Lack of preparation from management will result in frustration and poor decision-making.
3. Failure to adhere to the established agenda.
4. The morning of each sales meeting we were presented with the meeting’s agenda. We rarely stuck to those topics, and often got behind. The majority of the time was wasted.
5. Lack of a marketing and sales plan for your health club.
6. I do not remember any cohesive marketing programs or plan of action, which would increase our club market share or prospect/member awareness. It was difficult to generate excitement in the club.
7. No business fun in your sales meeting.
8. We had four talented, capable managers, who wanted to succeed and make money. There was no “motivational speaker” or trainer or consultant brought in to help us grow personally, to get outside our habits and look for innovative ways to grow our business.
9. No follow up from the top.
10. The Owner and the VP of Sales were great people. We became friends. But they had no action plan to work with us outside the club to identify markets, increase networking or improve corporate sales. We may or may not see them in the club between meetings.

From these experiences with health clubs across the country, I have three recommendations for effective sales meetings in your club:

1. Identify and promote a specific and definite objective for each meeting.
2. Keep it short and stick to the business of your health club. Generate excitement to make the meeting personally rewarding and health club profitable.
3. Follow up with a management presence in your health club to reinforce the initiatives or the plans decided in the sales meetings.

Salespeople in your health club need to be accountable and feel supported. Now, go have a great sales meeting!

Click here for more details on financing options or call 214-629-7223 or email jthomas@fmconsulting.net for more information. Or, apply now.

An Outsourced CEO and expert witness, Jim Thomas is the founder and president of Fitness Management USA Inc., a management consulting, turnaround, financing  and brokerage firm specializing in the gym and sports industry. With more than 25 years of experience owning, operating and managing clubs of all sizes, Thomas lectures and delivers seminars, webinars and workshops across the globe on the practical skills required to successfully overcome obscurity, improve sales, build teamwork and market fitness programs and products. Visit his Web site at: www.fmconsulting.net or www.youtube.com/gymconsultant.

Top 3 Reasons for Gym Failure

Top 5 Skills for a Successful Career in Gym Sales

 

Insurance for Personal Trainers

A personal trainer is working to help someone become their physical best. Perhaps someone is recovering from fitness injuries or simply trying to lose weight. Your personal training business is helping people transform. You may not be like a typical business with a storefront and extensive overhead — but there are risks involved in running the business. That’s why you need personal trainer insurance coverage.

What is Personal Trainer Insurance?

Personal trainer insurance protects you in the day-to-day tasks of your business, from personal training to giving nutrition recommendations. Personal training insurance protects you, your business, and your clients.

Why Does a Personal Training Business Need Insurance Coverage?

You may not think insurance coverage is necessary for your profession. After all, you don’t typically own a building or sell products. But you do face risks in your business that insurance can protect you from. A personal trainer can get injured when they move exercise equipment. A client can sue if he or she gets injured during the routine and thinks it is the personal trainer’s fault.

A woman who had a personal training session at a major name brand fitness location was severely injured when she was catapulted into the air by a machine. She broke her hip and sued the gym for $750,000 — and won. A client injury like this can easily put a small business in jeopardy and be financially devastating. Fortunately, if you get the right personal trainer insurance policy, your business can keep going through many types of adversity.

Secondly, if you work for a gym as a certified personal trainer, most require you to obtain a basic liability insurance policy and provide them proof of insurance alongside a personal trainer certification. Who all needs insurance coverage?

• Personal trainers
• Fitness instructors
• Group fitness instructors
• Rehabilitative professional (sports medicine)
• Health coaches

Insurance Personal Trainers Need

There are a few personal trainer insurance policies you should consider to provide coverage for your business.

Personal Trainer Liability Insurance

Businesses with a physical location are at risk of clients coming on their property and getting injured. Gyms, particularly, have a lot of hazards that a client might sue over if they are injured. General liability insurance, or ‘trip and fall insurance,’ covers third-party bodily injury claims, third-party property damage, and advertising injury (libel, slander, copyright infringement).

This could involve things like a client slipping and falling on a wet gym floor. It could involve a trainer causing property damage in a client’s home, or a class action lawsuit being filed against you for misleading advertising. General liability protects you in your day-to-day operations.

General liability coverage also pays for the costs of defense and covering liability claims. Many general liability policies cover a standard $1 million per occurrence, but types of specific situations and coverage limits could vary by the insurance company.

Professional Liability Insurance

Professional liability insurance — often referred to as errors and omissions insurance — is important to fitness professionals because you provide a service. You instruct clients on how to use heavy exercise equipment and give them recommendations on certain diets to follow, foods to eat, or products to use. Unhappy clients can sue you over perceived negligence or mistakes.

A client can claim that you instructed them how to use a weight machine incorrectly and that it was your neglect that led to their injury. They may also state that you gave them harmful dietary advice. In either case, professional liability coverage will pay these claims. Most insurance companies will provide legal representation and cover any related legal expenses or settlements.

Business Owner’s Policy

A Business Owner’s Policy (BOP) may be an affordable way for you to bundle coverage. A typical BOP includes general liability insurance, commercial property coverage, and business interruption insurance. Business interruption insurance can help you cover the financial burden of keeping your gym open if property damage claims leave you unable to fully operate.

In some cases, it can be more affordable than purchasing each individual coverage separately. Some insurance companies in the industry may include other insurance policies unique to personal trainers.

Product Liability Insurance

Personal trainers may provide their own equipment when they work with a client. Or perhaps they train clients in a home gym. If a piece of defective equipment injures someone, you can be at risk of being sued. If you provide clients with a product or supplement and they become sick or ill from it, they may find you at fault. Product liability insurance can step in to cover the cost of those claims (including legal costs, medical expenses, and settlements).

Workers’ Compensation Insurance

If you own a gym with a group of personal trainers, you may be required to obtain Workers’ compensation insurance. Workers’ comp covers medical costs and lost wages of employees if they are injured while at work. Many states legally require any business that hires employees to get worker’s compensation insurance. Plus, you don’t want to get stuck footing the bill for an expensive bodily injury.

Medical Insurance

A fitness instructor handles heavy equipment in crowded environments. Sometimes the equipment is slippery or covered in bacteria, and the trainers can wind up getting injured or sick. The long hours can also wear you down, and most personal trainers want to be healthy for their clients. If you are the only one in your company, you will want medical insurance to cover you if you become ill or injured.

Get a Personal Trainer Insurance Quote Now

Tivly understands how important your business is to you, how important it is to your business to be properly insured, and how important it is to bring you peace of mind. That’s why we help you find all the quotes you need to decide on the best policies for your situation.

Get a quote here.

 

Why You Need a Business Loan for Your Gym Business

Picture this, you have this great idea for a gym, and according to your projections, it will be a profitable venture. However, you have one main limitation: finances. Availability to finance a business idea plays a critical role in making your dream come true.

Are you stuck on the best way to finance your gym business idea? The good news is that there’s a way out: courtesy of loans. You can apply for a loan from various sources to skyrocket and stabilize your gym business.

If you’re interested in discovering the best gym business loans, you’re on the right site. We have exclusive information on different types of loans and how to apply them.

As a business owner, you understand the importance of having adequate finances to run a business. There are times when operations are not so profit-making, thus calling for a more financial boost. If you face a similar situation in your business and are sure to repay a loan according to the set term, don’t hesitate to apply for one.

Gym business loans come in handy when you start a business and don’t have the adequate financial muscle to see you through. A cash advance will help establish your startup and pay it back once it’s on its feet.

Additionally, funding for a gym business can come through if you’re interested in its expansion. Growing a gym needs a lot of funds, and asking for help from the right quarters won’t hurt.

Before you go for a loan, it’s important to know what it entails. You have to pay back the full amount owed and, in most cases, with some interest. Defaulting leads to penalties, which can be pretty harsh at times. Look out for small business loan requirements to get a hint of what you need before getting the financial aid.

Different Types of Loans for Gyms

There are various financing options for gyms you can opt for. You can go for the standard business loan that many business owners go for. You can also get a loan from banks or other financial institutions if you have the correct documentation based on your business size.

Short-term loans help, too, particularly when sorting out manageable bills like small-scale expansion or clearing arrears of your workers. You can take a real estate loan if you plan to establish a big gym.

The other support that can boost your gym business is the equipment financing loan to acquire gym equipment. Besides going to financial institutions for backup, family or friends can bail you out. You should agree to the loaning terms to avoid any problems in the future.

Below are more types of loans for gyms:

• Lines of credit loans
• Secured loans
• Credit cards
• Startup loans
• General grants for self-employed hair stylist

How to Get a Business Loan for Your Gym

Are you wondering how to get a business loan for a gym? Well, getting a gym loan can be a stressful process.

“Why do I need a loan?” This question guides you on the necessity of the financial aid you’re about to take. If it’s not necessary, you can look for other means to finance your gym.

If the loan is necessary, you need to develop a plan to get it and use it. Most firms that offer financial assistance will require some paperwork that shows you can repay the loan and how you will use it. Create a proposal showing your plan for the loan.

The next step is looking for partners that can offer you the credit. Consider their repayment terms, amount offered, and duration to land a suitable companion to lift you off your financial burden.

The challenging bit is getting an institution that will fund your business. If you have a good credit score, getting a loan will be a walk in the park. A poor score will require you to expand your horizons to get the best offer.

Still, on how to get a business loan for your gym, you can check out online lenders. The application process is fast and some won’t focus on your credit scores.

When to Qualify For a Gym Loan

Qualifying for a loan means your creditor has gone through your paperwork and deemed you worthy of the monetary boost. Notable firms will take their time before qualifying you for a loan as they have to conduct a background check.

You should apply for a loan when you need it. You need to be immensely disciplined if you get the loan and do not have an immediate use for it, as you may misuse it. The result is a muddy financial state that you need to clear to save your credit score.

Final Thoughts

To keep your business afloat, you need steady cash flow as a business owner. This applies too if you’re looking forward to starting or expanding the existing one. However, if you don’t have enough finances, you may resort to loans.

If you’re looking at gym loans, remember, you need discipline to take a loan. Defaulting can have serious consequences. There are several types of loans for your gym, from short-term business loans and real estate loans to cash advances. See if you qualify for a gym loan and get one to get your business moving!

Click here for more details on financing options or call 214–629–7223 or email jthomas@fmconsulting.net for more information. Or, apply now.

An Outsourced CEO and expert witness, Jim Thomas is the founder and president of Fitness Management USA Inc., a management consulting, turnaround and brokerage firm specializing in the gym and sports industry. With more than 25 years of experience owning, operating and managing clubs of all sizes, Thomas lectures and delivers seminars, webinars and workshops across the globe on the practical skills required to successfully overcome obscurity, improve sales, build teamwork and market fitness programs and products. Visit his Web site at: www.fmconsulting.net or www.youtube.com/gymconsultant.