SPORTS FACILITY FINANCING IS EASIER THAN EVER DO YOU WANT TO START, OR BUY, A SPORTS FACILITY of some kind? Or do you have a client interested in doing so? If you do, the financing may be easier than you think for:
• Bowling alleys • Billiard rooms • Tennis courts • Golf courses • Marinas “WHY IS THIS?” you ask. For a number of good reasons that can help you, namely:
• Lenders know what income level to expect from each type of facility, based on the size of the complex.
• Loans can be based on expected cash flow and a known repayment schedule for the loan at a given interest rate.
• Collateral is available in the form of the equipment used in the facility—such as alleys, billiard tables, docks, etc.
• Actual income can be projected based on the location of the facility, the population of the surrounding area, nearness of competition, etc.
WITH ALL THIS VALUABLE INFORMATION AVAILABLE, it is easier for lenders to make a loan decision because they’re not “operating in the dark.” This means that getting a sports-facility loan for yourself, or a client is easier if:
• Your business numbers are in line with the usual facility.
• You have a short Business Plan for your facility.
• You have some business experience in the field.
• Your competing facilities are not too close to yours.
• You have a reasonably good credit score.
• Your resume and business plan look professional.
EXAMPLE -- BOWLING ALLEY FINANCING In most cases, the best source for obtaining a loan for a bowling alley is a local bank that is familiar with the business's location and market, If the bank also wants to handle the bowling alley's bank deposits in the future, that's even better. Depending on the situation, the bank may choose to have part of the loan guaranteed by the Small Business Administration. This may require additional paperwork. Sometimes you may be able to find loan sources that are experienced in bowling alley financing. Occasionally, seller of the bowling alley might carry a small portion of the debt to help the borrower qualify for the loan.
SPORTS FACILITY FINANCING IS EASIER THAN EVER - To learn more about this author, visit Tyler Hicks's Website.
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