Recreation Company Secures Financing
Merchant Cash Advance Recreation Company Secures Financing
Author: Gerelyn Terzo
Date posted: 03.05.24

Dave was the owner of a Utah-based recreation company, kind of like a Mud Run, that works with groups on team building, boosting morale, communication, strategizing, and managing stress. He launched the company a year and a half ago with two friends. While it’s loads of fun, it’s also a capital-intensive business with challenges, chief among them has been funding.

Fortunately, Dave was friendly with another small business owner who had experience getting funding. The seasoned business owner recommended a merchant cash advance and referred Dave to the same trusted company he had used before. After due diligence, Dave and his team were convinced that selling a percentage of future revenues at a discount was worthwhile for quick cash access and simplicity. They reached out to the funding company to establish a relationship and get the ball rolling.

 

Dave’s company was on track for $2,000,000 in sales in its first full year. He was looking to access $150,000 in funding to help grow the business and maintain a competitive edge as copycat companies were springing up. That lump-sum amount would catapult the business further in a shorter amount of time than would otherwise be possible.

 

Recreation Company Secures Financing
Expanding Opportunities and Services with the Funding
It was important to Dave to have affordable payments that allowed for some flexibility. Moreover, in his line of work, some months are busier than others. Given the seasonal nature of the business, it made it an ideal candidate for an MCA. As a result, Dave was pleased to learn that there was no fixed repayment term. Instead, payments would be made as a percentage of credit card sales. With this arrangement, he should have the advance repaid in about 12 months.

 

With the funding, Dave’s business would increase the number of races it offered across more cities. They also launched an online marketplace to match obstacle course racing (OCR) coaches with teams and individuals looking to train before competitions.

Before the funding, founding members of the company wore many hats, from answering phones to booking clients to leading strategy sessions. They decided that to focus on what they do best, team building, they needed help. So, they hired an outside company to handle setting appointments and other administrative-related tasks. This would free Dave and his team to focus on things like marketing and advertising to build the brand and grow the business.

 

With the capital obtained through a revenue advance, Dave and his team expanded their physical footprint. Additionally, participating in trade shows, they collaborated with vendors to create attention-grabbing booths. As a result, these booths paved the way for valuable networking opportunities for fellow entrepreneurs. Consequently, Dave’s positive financing experience has left him confident about securing quick and easy funding in the future.

Recreation Company Secures Financing
About The Author | Gerelyn Terzo

Gerelyn is a financial journalist who has reported for some of the top trade publications on investment banking, fintech and cryptocurrency. Gerelyn graduated from Campbell University with a B.A. in Mass Communications and currently resides in New Jersey.

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