Case Study

Entertainment Facility Improvements

Company —
Leisure & Entertainment Business
Business Type —
Leisure Investments
Requirement —
Catering fit-out and bowling alley
Solution —
Lease Finance

Entertainment Business Diversifies Their Offerings Through Finance

A well-established entertainment and leisure business has been offering a range of entertainment experiences to visitors, including indoor trampoline parks and gaming arcades. As part of their commitment to staying ahead in the industry and providing top-notch experiences to their customers, they decided to upgrade their facilities with a full kitchen and catering fit-out and the addition of a state-of-the-art bowling alley.

The Challenge

As an independent entertainment and gaming business, they faced several challenges in today’s competitive economic market, especially in the aftermath of the COVID-19 pandemic and lockdowns.

These challenges included the need to enhance their offerings to meet customer expectations, maintain a strong market presence, and adapt to the changing consumer behaviour in the post-lockdown landscape. However, such upgrades required significant investment, which could strain the company’s resources and cash flow.

Facility Upgrades

The business, using entertainment finance, earmarked investment in a comprehensive kitchen and catering fit-out to enhance their food offerings and customer experience. Additionally, they sought to add a bowling alley to diversify their entertainment offerings, attracting a broader audience and increasing customer retention.

Benefits

  1. Enhanced Customer Experience: The full kitchen and catering fit-out allowed the provision of a wide range of food options to visitors, enhancing their overall experience and encouraging longer stays at the facility.

  2. Diversification and Attraction: The addition of a modern bowling alley broadened offerings, attracting families, groups, and corporate events, and reducing reliance on specific attractions.

  3. Increased Revenue Streams: With the improved facilities and diversified offerings, the business could tap into additional revenue streams, contributing to financial stability and growth.

  4. Competitive Advantage: Upgrading their facilities allowed them to stand out from competitors and position themselves as a go-to entertainment destination.

Challenges for Small Independent Entertainment Businesses and Solutions with Finance

  1. Financial Constraints: Small businesses often face financial constraints when undertaking significant upgrades or expansions. Portman’s finance options, such as business loans, can provide a solution to access the necessary funds without depleting capital reserves.

  2. Market Volatility: Economic uncertainties and changing consumer behaviours, especially post-lockdown, can impact entertainment businesses’ revenues. Finance allows businesses to adapt and innovate their offerings to meet changing demands.

  3. Technological Advancements: In the rapidly evolving entertainment industry, keeping up with the latest technology can be challenging. Finance such as lease finance or equipment finance allows businesses to invest in state-of-the-art equipment and facilities to maintain competitiveness.

Conclusion

Strategic financing through Portman Financial Group allowed the business to successfully modernise their entertainment and leisure facilities, offering a diverse and thrilling experience to their customers.

With the availability of arcade machine finance, solutions tailored to finance a kitchen fit-out and the funding a bowling alley, they were able to overcome financial challenges and navigate the uncertainties of the post-lockdown landscape.

Such funding isn’t just restricted to the amusements industry. If you run a leisure centre or holiday park and your business plan highlights expansion or investment, Portman can help.

Leisure and entertainments upgrades for amusement arcades, bowling alley finance, or additional funds for the the latest arcade games will all be be a major investment.

Requiring additional financial facilities for a games room or breakout area can be comfortably funded by business owners through a number of payment options including, fixed monthly payments.

Partner with Portman, for a successful future

There are plenty of finance options out there for you, deciding which is right for you will take time and consideration. But why should you choose these financing options from Portman?

At Portman Finance Group we are focused on serving the needs of you and your businesses, and have been doing so for thousands of other businesses since 2007, raising over £1 billion in funding for UK SMEs. 

We take the time to truly understand your business and what you need, ensuring we secure the right funding for you. As both a broker and a lender, we can also offer financial options that others cannot. We promise you will have one point of contact from start to end, providing you solutions quickly, sometimes within hours.

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Hire Purchase

Hire purchase usually involves paying the VAT and a deposit up-front. Fixed monthly repayments are then made, affected by whether you pay off the entire loan over the term or chose a final balloon payment. The final option to purchase is guaranteed for a nominal fee, transferring ownership of the asset to the customer.

Hire purchase is well-suited for situations where a company definitely wants to own the item at the end of the term, often where the asset has a significant usable lifespan, a high residual value and will not need to be upgraded.

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Lease Finance

Equipment leasing allows a business to acquire hard or soft assets without the upfront costs associated with large purchases. A lender purchases the item, the business then leases it through fixed monthly payments over an agreed term.

Typically, asset finance is provided for high value ‘hard’ assets such as machinery, equipment, or vehicles, but Portman also arranges asset finance for ‘soft’ assets such as IT, fitness, catering, or vending equipment, as well as premises fit-outs, furniture or even air-conditioning.

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Business Loans

Business loans are a way of borrowing money, which is repaid in monthly instalments, including interest, over an agreed term. Business loans are a common way to help smooth out cashflow fluctuations and take opportunities where otherwise they could be missed due to a lack of working capital.

Business loans can be secured or unsecured. Portman typically provides unsecured loans which can be more flexible and do not require collateral but are likely to require a personal guarantee. Secured loans are tied to an asset which the lender can claim ownership of if repayments are not made, these may be used in equipment refinance deals.

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Start Up Loans

New businesses often need an injection of finance to get them off the ground. Asset finance for new businesses allows you to focus on running your company and bringing in customers, confident that you have the equipment, vehicle or stock you need without the large initial outlay.

Using finance for your equipment means that you preserve the credit card or overdraft for contingency and operating expenses when the unexpected happens.

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Equipment Refinance

If you recently bought a high-value item outright but would now prefer to have financed it, we can help with a sale-and-lease-back agreement. If the item is less than 3m old, give us a copy of the invoice and we will calculate the current value. After a few checks and acceptance of the term and monthly repayments, we can give you the cash equivalent of the invoice to put back into the business. You’ll then make fixed monthly payments including interest, whilst your asset earns you money.

If your business owns high value assets that are not currently on finance, subject to a valuation, it is also possible to use them as security for a loan, with lenders offering a cash loan up to a % of the asset’s value.

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Recovery Loans

Recovery Loans offer an excellent way of making sure your business gets back on its feet after the long-term effects of the pandemic and subsequent supply chain disruption. Businesses with turnovers up to £45m, including those who have previously benefited from the government’s CBILS, BBL or RLS, can apply.

Recovery Loans can be used for any legitimate business purpose or simply to provide cashflow. Rates are capped and the government continues to guarantee 70% of the outstanding balance, giving added security for lenders who are now able to consider finance for businesses who may have previously found it difficult to obtain.

Up to £2m can be borrowed on terms from 2 to 6 years. Your personal private residence cannot be taken as security.

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