Term Loan Home Run
Author: Stephanie Clarke
Date posted: 03.25.23

J.C. had always loved baseball, from that first day in T-ball all the way through to making all-state in high school and qualifying as a walk-on in college. He loved the game and decided after having successfully navigated a management career for years, he ran an outdoor batting cage facility for a number of years with success and now saw the opportunity to grow his business.

J.C. quickly found the ideal location for the expansion, a vacant 15,000 square/ft. indoor space waiting to be transformed. He quickly leased the space, securing an option to buy should the venture prove successful. His new indoor facility would include batting cages for baseball and softball players but also pitching cages, along with areas for team drills and meetings. He would also offer equipment rental and offer coaching clinics and one-on-one training.

 

With the growing popularity of baseball and softball programs, J.C. felt his business would be a hit as long as he provided a safe and clean state-of-the-art facility. The facility would allow children and teenagers the opportunity to work on their skills with the help of one-on-one coaching and practice in a safe, fun environment. Plus unlike outdoor batting cages, this indoor facility could be used year round.

With the facility already secured, J.C. went to work on estimating the cost of the equipment and renovations the facility would need to be the best in the business. With batting cages, pitching machines, pitching areas, sports turf for training areas, bats, balls, gloves, and more, he arrived at a total of $600,000.

 

J.C. began looking for a lender who could make the loan with terms which were acceptable to him. He had an excellent credit score and exceptional credit history, along with well-organized financials from his outdoor facility. His goal was a seven-year term, which he believed he would be able to pay off early given the demand for the facility and little to no competition in the area.

J.C. found a lender who would agree to the seven-year term for the $600,000 needed to fund the expansion. Once the loan was secured, he began purchasing what was needed to get the facility operational. Within three months, he was satisfied with the new space and opened to rave reviews. The community rallied around the idea and within six months the expanded indoor facility boasted a steadily growing stream of customers. At the end of the first year, J.C. began one-on-one training classes by reservation only as well as team coaching events.

 

At the five-year anniversary of the facility, J.C. is excited about his success as well as the ability to pay off his loan earlier than expected.

About The Author | Stephanie Clarke

Stephanie has a bachelor's degree in psychology and has been a professional writer for over 15 years. Her client list includes New York Times bestselling authors, publishing houses, prominent public figures and successful business owners. She resides with her family in Florida.

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