NOBODY BUT NOBODY SAW COVID-19 COMING.
ASSET FINANCE FOR GYMS – OVER BORROWED?
Its effect on all businesses, as we know has been catastrophic and in this blog, we are focusing on asset finance for gyms.
Over the past couple of weeks, pre-COVID, we had 5 clients come on board who operated as gyms.
Most were franchise-based, who were offered a more or less ‘turn-key’ proposal.
Typically these cases just needed to secure premises and then the model would be developed on the back of ‘footfall’.
With finance readily available – on the proviso Personal Guarantees (PGs) were given.
We issued a blog last week on FRI leases that tie in the gym owner and today we are making reference to the asset finance.
Read the full blog here: https://www.bellcomp.co.uk/blog/property-lease-issues/
Typically the gym set up model saw finance companies KEEN to sell their wares offering to finance every bit of kit and fixture needed.
This model which when the business is flying and the subscription uptake is good, can work very well.
However such highly geared operations are susceptible to any downtown and COVID-19 is the ultimate downturn.
At Bell & Company, we know of excellent, substantial gym manufacturers and wholesalers who were trading brilliantly up until the middle of March.
Literally the lockdown has put them into freefall.
We are not looking to labour on the demise of gyms but we know the typical financial structures very well.
If you’re facing a difficult future through no fault your own:
-Give us a call and we will talk your case through and then determine the best route forward.
Just so you know asset finance companies are not the most forgiving type and you need to make sure you get the best advice in your specific position…So get that call Bell & Company today: 0330 159 5820.