Soft Play Centre Frees Up Cashflow by Consolidating High-Cost Debt

Company Sector: Leisure

Loan Type: Consolidation and Term Loans
Loan Amount: £100,000

The Challenge

Running a successful soft play centre, our client enjoys the fast pace of their business and the everyday challenges of staffing levels and safety checks. During our first conversation, the owner explained when they started out, they’d taken on expensive borrowing to get set up. The business itself was in good shape with regular customers, strong local reputation and reliable demand. Every month, their revenue was being strained by high-cost repayments and they needed help finding an affordable alternative.

Our Solution

We reviewed the company’s existing finance agreements and their cashflow. With clear goals of reducing the client’s interest payments and improving cashflow, we organised two funding solutions totalling £100,000.

• Consolidation Loan
  Restructuring the existing debt and achieving rates that reflected the trading profile of the business to reduce their
  interest payments

• Term Loan
  Smoothing cashflow and reducing financial strain immediately 
  

The Results

• Stronger margins - monthly repayments dropped, and revenue stayed in the business instead

• Improved cashflow - day-to-day cashflow became manageable without constant monitoring, enabling a more stable footing

• Simplified finances – the client could get on with running the business rather than worrying about expensive repayments
  

If your business is facing similar challenges - get in touch to explore how we can help - 01832 770 273