Leisure Fit Out & Virtual Reality Equipment Finance – New Start Concept.
The Brief
The business was a brand-new virtual reality family entertainment centre, based in the heart of Manchester. The site was around 6,000 sq. ft and the total funding requirement was £1.2 million + VAT. This covered the audio-visual equipment, catering equipment and simulators, along with the entire fit-out, including signage, building works, flooring, electrical works and decorating.
What we were tasked to do
To provide funding over as long a period as possible whilst keeping any deposit payments to a minimum, as the client was already investing significant funds into the project to cover rent deposit, legal fees, design fees and working capital.
Challenges to Origin
Not only was this a brand-new start-up venture, but the business was also going to operate in the leisure and hospitality sector, which was the worst affected during COVID-19, with many lenders still having significant arrears with this type of business. The real strength of this venture was the three individuals behind it, all of whom had previously worked for industry giants, and, therefore, had a plethora of experience combined with significant personal investment.
Outcome
Given the significant overall funding requirement, along with the niche equipment needed and lenders’ risk appetite, this transaction had to be syndicated across 11 lenders.
