New Cinema Location

Business Stage
New Business
Industry
Service
Time In Business
11 Months
Employees
10
Equipment Type
Weak Collateral
Ticket Size
$30K - $50K
Equipment Details
POS System and Camera Monitoring System
Equipment Purpose
Replacement
Weaknesses (Cons)
  • New location; only 11 months operating
  • Equipment is weak with low residual value
  • No PG’s from spouses
  • B2C business- revenues tied to consumer spending
Strengths (Pros)
  • New location was an existing cinema that was acquired and remodeled
  • Equipment is needed to replace old equipment
  • Agreed to Cross Corp existing business
  • Cross Corp revenue is $6MM and been in business for 5 years
  • 3 strong PG’s with extensive holdings in industry, industry experience and very high net worth
  • Paydex of 72 with no liens, BK’s or judgments
Creative Solution
Before we even had a chance to review the deal the broker showed great confidence in the lessee by offering a 12 month buy back if the lessee was to default. We were able to approve the lease for a 36 month term, 10% refundable security deposit, 3 PG’s and cross-corp guaranty from a related entity.
Team Sales Rep
Lynn Smith