This Health Club chain originally came to its commercial finance broker after taking a hit after Covid. On the one hand the business was showing severe losses, however, on the other hand it had a plan for recovery through restructuring, and a good team on board.
This deal didn’t tick the boxes on paper for a traditional lender. But the broker could see it was a good deal with a story to it, and he needed to get it in front of an underwriter.
The broker knew it was a perfect deal for Asset Advantage. Philip Knight, Head of Credit and Risk at Asset Advantage took the approach of meeting with their Finance Director and emerged satisfied with the proposal.
Why Finance Lease?
Finance Lease is a popular choice for gym equipment. You don’t need to pay VAT upfront, and there are some tax relief benefits. Most clients then upgrade the equipment at the end of the 3 year or 5 year term.
Why Asset Advantage?
Having Asset Advantage as a funder really made the difference in getting this deal done for the client. As there weren’t many other options available to the broker to pursue. The severe losses meant that a traditional lender would decline the deal, and a sub-prime lender would have an extremely high rate, which the client may have walked away from. Meaning working with Asset Advantage was pivotal in reaching a deal for this client.
The Result
From this first deal four more have followed in reasonably quick succession. The chain now operate four health clubs around the country, and are making a profit again.
If you are looking for funding for your client, contact Katie Dowse today:
