Term Loan Rolling The Dice
Author: Stephanie Clarke
Date posted: 11.06.22

A comic book store in New Jersey was struggling with revenue and wanted to expand its business model. They could pay their staff and bills but didn't see any growth. They mainly only carried comic books and merchandise relating to those characters. It wasn't until 2017 that they discovered Dungeons and Dragons' increasing popularity.

Dungeons and Dragons is a tabletop role-playing game for groups of players to fight off evil monsters and go on legendary adventures. It was huge in the 80s but died in the 90s and early 2000s. With the addition of YouTube and Twitch streaming, more and more people were getting involved again.

 

One of the employees mentioned his group was having trouble finding a space to play and a place to buy books and mini figures for their campaigns. The owner thought it could be a great idea to expand their business to include DnD merchandise, which proved fruitful as they were getting more and more people buying their products.

 

The business next door had gone under a few months prior and had been vacant ever since. More and more customers kept telling the owner how they wished they had a space to play DnD, but nothing was available. This gave him the idea to expand his space. The landlord had offered him the space for a discounted price if he wanted to expand his store, and now was the perfect time to take advantage of that.

With the lease signed, a construction crew was brought in, and they gave the owner a quote on what it would cost to renovate the space and create a doorway between the two. It would cost $125,000 for all the new walls, lighting, and flooring. Knowing it would take some time to pay that amount back, he knew a loan would probably be the best choice.

 

Looking over the various options of loans, he decided on a 5-year term loan. This would allow him to budget in the fixed payments. The process was easy with its simple application form, and he received a reply within a few business days. They could find the best rate from a leading bank and start the paperwork.

There was some time before he could get the money, as the bank needed to secure the loan. With a fixed interest rate and affordable monthly payments, he was more than willing to wait. After 90 days, the comic book store was ready to expand and had not only one gaming room but two! They added additional bathrooms, gaming tables, and props, making it a fun area for their future guests.

 

The gaming rooms were booked up for DnD sessions, and the room was rented for mini-figure painting and drawing classes. It allowed more people to visit the comic store and spend more money there. Thanks to this idea from his staff, the owner was able to see a significant bump in sales and profits.

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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