Could bridging funding help ailing nightclubs?
For the fourth successive year, turnover of the top 100 nightclubs in the UK has fallen, according to a BridgingAndCommercial.co.uk article from September 2017.
Part of the reason for the decline is that many people prefer bars and clubs for their late night entertainment. At one time, pubs closed at 11:00 pm so were not regarded as direct competitors to nightclubs. Since the extension of the licencing hours, many are more like nightclubs with DJs and loud music.
To compete with pubs and bars, some nightclubs may need to upgrade their interiors and install state-of-the-art sound and light systems. There is a trend for rooftop terraces too, but all these improvements require money.
As statistics suggest some nightclubs are struggling financially, they may turn to loans. They can find it difficult to obtain finance from large lenders, but without improvements, fewer customers are attracted to their clubs and this can lead to a downward spiral that could force them to close their doors.
Operating a nightclub in the right location with great facilities and top DJs can generate good profits. This is recognised by a number of specialist lenders who are prepared to provide bridging loans for refurbishing nightclubs. A good bridging finance broker should be able to find an alternative lender that will lend money on the basis of a sound business plan.
Although many nightclubs have gone out of business, those who have upgraded their dated facilities are continuing to perform well in this difficult market.