With dramatic rises in price inflation and the falling exchange rate adding to the cost of imported machines, entertainment businesses have been looking for help to manage cashflow or to finance new machines and equipment, but are they looking in the right places? asks Portman Asset Finance.
Entertainment businesses are struggling to obtain finance from traditional sources, according to Portman Asset Finance.
Figures from the Bank of England show the rate of lending from banks to SMEs is at a record low of 73 percent, with amusement operators among those struggling to obtain finance.
“High street banks typically have the tightest lending criteria, and may not offer a suitable finance product and are restricted to just their own credit appetite for the gaming industry.” said a spokesperson for Portman. “Crowdfunding and peer-to-peer platforms are an alternative consideration but do not necessarily lead to obtaining the full level of funding required.”
Both a direct lender and a broker with access to over 40 specialist partners, Portman is “likely to give entertainment businesses a greater chance of acceptance” as the company can write business directly or combine options across our funders to provide a comprehensive solution. In recent times, Portman have been busy supporting SMEs through the Recovery Loan Scheme (RLS) to aid businesses who have been struggling due to the COVID-19 pandemic. Although the scheme has ended, Portman have continued to help companies in the industry fund their growth with their variety of quality financial solutions, offering a higher chance of acceptance compared to traditional sources of finance.
“Portman have very recently provided cashflow loans for an amusement arcade in Suffolk and a mini golf supplier in Hertfordshire, supporting their business growth this summer,” continued the company. “We have also provided asset finance to purchase arcade machines for a supplier in Scotland.”
Along with helping entertainment businesses, Portman are a long-term partner of manufacturers and suppliers to the industry, most recently partnering with a leading supplier of children rides and arcade amusements in Cumbria. “We are always happy to support suppliers within the entertainment industry using finance as a sales aid to make purchases more affordable,” added Simon Pratt, director of strategy and operations at Portman.