Why This Fitness Business Used Both a Credit Facility and a Short-Term Loan
Company Sector: Fitness
Loan Types & Amounts:
Credit Facility £14,000
Short-Term Loan £10,000
The Challenge
A premium personal training facility operating from a state-of-the-art location was facing significant cashflow pressure. The business had undertaken an ambitious extension project to further enhance its facilities.
However, planning complications meant timelines had shifted and the reworking of plans created unpredictable cashflow demands. The owner found himself unable to manage the ongoing costs of materials and labour, which threatened to strain the business's day-to-day operations and member commitments.
"The owner found himself unable to manage the ongoing costs of materials and labour"
Our Solution
We explored two complementary funding options with the owner. A Credit Facility would provide flexible access to capital exactly when it was needed, ideal for the unpredictable nature of the build. We paired this with a Short-Term Loan to address the immediate cashflow pressure and provide breathing room whilst the extension progressed.
"Flexible access to capital exactly when it was needed, ideal for the unpredictable nature of the build"
The Results
We secured funding from two of our Tier 1 lenders.
Credit Facility
The Credit Facility of £14,000 gave the business owner the flexibility to draw down funds as materials and labour costs arose, without paying interest on money he wasn't yet using.
Short-Term Loan
The Short-Term Loan of £10,000 provided immediate relief, taking the pressure off day-to-day operations and allowing the business to continue uninterrupted.
If your business is facing unexpected costs - get in touch to explore how we can help - 01832 770 273