Deciding What Direction to Go In

The owner was happy with the business – in general, at least. But something was missing. Looking over the clientele visiting the arcade space, it dawned on him one day – It was filled with adults who had played these games as kids. The younger crowd was sparse and sometimes not at the arcade at all. When it came down to it, the arcade games made up the heart of the place. But it didn’t take much thought to realize that adding more modern amenities might bring in a larger crowd. So the owner started to do some research and come up with options.

 

Thinking About Financing Needs

In the end, the owner decided the arcade needed more than arcade games. A foosball table, some modern games, a few snacks, and a more modern atmosphere were sure to make the spot as popular with the younger group as it was with adults indulging in nostalgia.

 

Most of the things needed would be expensive. The owner tallied up the potential costs and realized about $200,000 would give the place a new look and lots of fun video games and entertainment options to make it more appealing.

Where to Get the Money?

The arcade was fun, and the owner could pay his rent on the profits, but it wasn’t bringing in tons of free cash flow. It was quickly apparent that financing of some sort would be needed to make the shop aesthetically pleasing and fun for younger generations. The problem was deciding what type of financing would work out without leaving the owner struggling.

 

It turned out that a business line of credit fit their needs. The arcade could pull money as needed to make changes and only pay interest on what they took out. This could be a great way to make sure expenses didn’t add up and too much wasn’t used before it was determined that the changes would work.

 

 

Moving Forward With a Business Line of Credit

After looking at business loans and lines of credit, it became clear that either would work, but one had an advantage. In the end, the company received quotes for both forms of financing but decided to move forward with a business line of credit. It seemed to be the best option for the short-term and for the future if the window washing company was successful with commercial properties.

Benefits of a Business Line of Credit

The reason this arcade chose a business line of credit was due to flexibility. They come in various sizes, and business owners can take out as much or as little as they need to grow their business. It’s also a revolving line of credit so that you can continue to access it for other needs.

 

What Happened in the End?

Adding some modern video game systems, a snack bar, and a new aesthetic to the arcade successfully brought in new customers. Nowadays, the owner is looking for other ways to ensure customers are happy. They hope to make more money while offering a unique neighborhood hangout that people will enjoy for years to come.

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