Michelle Van Horn, VP/Global Partnerships at Xplor Technologies, discusses the unique challenges fitness businesses face, the launch of Xplor Capital and the role of adaptive financing solutions
The fitness industry is booming, with boutique studios opening doors every day across the globe. But for these small business owners, access to capital can often be a stumbling block as they struggle with traditional lenders who demand credit histories, collateral and mountains of paperwork.
Enter Michelle Van Horn and Xplor Technologies, a financial services company on a mission to reimagine financing for the fitness sector.
In an exclusive conversation with Athletech News, Van Horn, Xplor’s vice president of global partnerships, who has fitness certifications from Yoga Alliance and Yoga Sculpt, shares how Xplor Capital is addressing these challenges, supporting studio growth and enabling entrepreneurs to focus on what matters most — building their businesses and communities.
Athletech News: How long have you been serving the fitness industry, and what made your company focus on this niche?
Michelle Van Horn: Xplor Mariana Tek was founded in 2015 by fitness experts who wanted to change the way boutique fitness software operates. We built a platform that studio brands can trust, and now we work with thousands of fitness and wellness studio locations across the U.K., U.S., Canada, and Australia, with plans to expand into Europe and Asia soon.
We unveiled our capital option for fitness and wellness studios, Xplor Capital, in April 2024. Since then, we’ve loaned over $4.2 million in capital to our boutique fitness customers in North America.
ATN: What unique challenges do fitness businesses face when seeking equipment leasing or business financing, compared to other industries?
MVH: Like small business owners in other industries, studio owners are time poor and often don’t have the time to research finance options and then complete all the loan application paperwork for their business.
And, as there are many new fitness and wellness studio locations opening every day, many of these are new businesses, which means they don’t have the two years of operating history and credit scores that banks typically require in loan applications.
Lenders are typically focused on credit, and the interest rates are very high. This, coupled with the rising inflation and increased operating costs, means that it can be difficult for studios to access the capital they need to grow their business. With Xplor Capital, we’re looking to break down these barriers with a seamless lending experience that gives business owners access to the funding they need to accelerate their goals.
ATN: Can you share examples of fitness businesses you’ve helped, and the impact of your financing solutions on their growth?
MVH: Here’s a testimonial from Michael Cruthird, of Flex ‘n Burn, a community-driven gym located in Santa Clarita, California, who said, “I very much liked that the access to capital was essentially pre-approved for a certain amount, and I liked that the funding was relatively quick.”
Michael Baiocchi, of Bala Yoga, a two-location yoga studio in Seattle, said, “So far, everything with the program has been good. We really need the funding to help our growth.”
ATN: What types of financing options do you offer for fitness businesses (e.g., leasing, loans, lines of credit)?
MVH: Today, we offer Flex Loans and Merchant Cash Advances.
ATN: How do you structure equipment leasing agreements when it comes to term length, interest rates and payment flexibility for fitness entrepreneurs?
MVH: Our program relies on sales history to determine eligibility, so there is no lengthy paperwork, credit checks or collateral needed. There is no interest, just one fixed fee that studios pay over the term of the advance or loan.
Approved funds can be available in as little as one business day, and we offer flexibility with payment terms, which are based on a fixed percentage of gross sales, not necessarily a fixed amount on a fixed schedule.
ATN: Does your financing cover all types of fitness equipment (e.g., treadmills, weight machines, group class equipment) or are there limitations?
MVH: Studios can use the growth capital as they see fit, for whatever their business needs most. Among the studios that have accessed Xplor Capital, we find that the most common uses of capital are for investing in marketing and studio equipment.
In the U.S., our customers have used their Flex loans for: marketing (23.29 percent), equipment (19.18 percent), payroll/hiring (16.44 percent), expansion (16.44 percent), inventory (12.33 percent), rent (9.59 percent), other (8.22 percent) and remodelling (2.74 percent). These are multi-select where studios select any or all reasons as to how they use their capital.
ATN: What are the typical eligibility requirements for fitness businesses applying for equipment leasing or financing?
MVH: Pre-approval is based on sales history. Our eligibility criteria look at multiple business performance factors to determine the best offer available to that business. That means increasing sales, and maintaining consistent sales over time, will help increase a studio’s chances of getting a pre-approved offer. If a studio is pre-approved for a loan offer, they will receive an email with a link to the loan application.
ATN: How long does the application and approval process take, and what documents are typically required?
MVH: We rely on sales history to determine eligibility. No paperwork, credit checks, or collateral required. Studios can get a decision in as little as one business day.
