Fitness chain sets sights on UK expansion
Satellite Finance Ltd prides itself on keeping its team small to offer a more personal service to its customers. They work with businesses of all sizes, across all sectors offering in-depth market knowledge gained through many years of experience.
Satellite’s customer is a privately owned and operated fitness chain founded in the USA in 2003. The company motto is ‘Fast, Convenient, Affordable’ and brands itself as an alternative to the big box gyms. With over 2000 sites open worldwide (the majority in the USA and 190+ in Australia) the focus is now on building the brand in the UK with circa 26 sites now open.
The model is a 24 hour, seven days a week, non-contracted membership, top-end gym equipment with convenient access, no overcrowding and secure premises with low operating and staffing costs.
The client met with Close Brothers Business Finance and Jon Williams, Sales Director at Satellite Finance, to gain a better understanding of the brand and business in the UK. They discussed funding for the premises, hard equipment and other gym equipment.
The client had already worked with Satellite Finance and Close Brothers as financial support had been provided for a previous site. Therefore, there was already comfort in the brand and knowledge that the business worked.
Having reviewed the requirements, serviceability and affordability, it was evident via supporting forecasts and ongoing cash flow, that this was a proven business model. The customer also had vast experience in the sector and contributed a large personal investment in order to secure much needed finance.
Tailor-made funding solution
A successful Hire Purchase product deal of just under £300,000 was put in place with a term of five years including a three month VAT deferral.
Commenting on the deal, Jon Williams said: “Having already worked together with Close Brothers and our client on funding for equipment and a previous site, it was the obvious choice that we worked together again. The support and advice from the team at Close Brothers has been invaluable and our client is now in the best possible place to push forward with expansion of their UK business.”