Nightclub & Bar Loans. Working Capital and Growth Capital for Nightclubs. LVRG Funding Has Liftoff Capital!

Nightclubs are a pervasive part of our culture, and no matter where you go around the world, each country has adopted the nightclub as the benchmark of their nightlife. They are an excellent social venue and attractive to both genders, as they offer the promise of a wonderful experience on every visit. For women, nightclubs are a great place to dance with your friends and meet guys. The prospect of meeting attractive women is primarily what drives men to nightclubs, and the atmosphere and experience cultivated by a nightclub is designed with these factors in mind.

The lure of owning a bar, nightclub or lounge is strong: no boring 9-to-5 schedule, no dress code (at least not for you), no cubicles. You can play music as loud as you want, enjoy reserved seating every night and take advantage of an open bar. Sounds like a dream gif. That is, if you don’t consider the high turnover in employees, drunk and belligerent patrons, and bartenders who give out free drinks and dilute what little profit you make.

Here’s a few tips to consider if you want to operate a successful nightclub:

- Obtain a wide variety of alcoholic drinks to serve your customers. Some bars and nightclubs only have a very limited selection of drinks. This turns off certain customers and makes it so that you do not sell as many drinks. Figure out what sells the best and keep it in stock at all times. Then get a smaller amount of a wide variety of drinks to please all your guests.

- Promote your nightclub frequently and consistently. Even though you may eventually develop a regular clientele, you still need other customers coming in the door on a regular basis. Consider advertising on the radio, on television, in the paper and online. Many bars also use cross promotional strategies and work with other businesses. For example, working with a local restaurant could provide you and the restaurant with more business.

- Offer specials, discounts and promotions to help bring people in the door. For example, having themed nights can attract more customers. Having different drink specials every night gives your clients a reason to come on any night of the week. Pass out flyers with coupons on them to get new customers in the door.

- Pay attention to the details of your business. Some nightclub owners treat their clubs as a hobby instead of a business. If you want to make a living with a nightclub, you need to deal with the financial aspects of your business closely. Hold employees accountable for cash, price your menu properly and follow the rules of the local and state health department to avoid fines.

- And the most important tip we can give, is have ready access to capital at all times.

Nightclub & bar financing from LVRG is readily available and dependent upon the specific loan request that is being made. In the past, nightclub & bar owners have relied on banks and institutional lenders for conventional loans, SBA loans and asset based loans to grow their nightclub; however in today's day and age, roughly 80% of all nightclub owners get denied bank financing for one reason or another. As with all the variation of nightclub finance options, there is also a wide range of lending criteria that goes along with each loan type. nightclub loan options that may seem the most prudent, also come along with the most stringent underwriting criteria and longest time to fund. Let’s get real, do you really have 2-8 months to wait for a bank loan to fund, and countless hours to devote uploading paperwork. Not likely. There are various loan purposes to consider as a borrower depending on whether the nightclub owner is looking to purchase an existing nightclub, seek leasehold improvements, remodel, purchase inventory, liquor, sound equipment, hire DJ's, etc.. When it comes to nightclub financing, nightclub owners will face several decisions in regard to which loan products to target and which will make the most sense for their nightclub business.

Which loan product is right for my nightclub?

There are several nightclub financing programs that have been used to finance all types of nightclubs. nightclub owners with impeccable credit are able to received fairly competitive loan rates and terms, with interest rates generally ranging between 5.75% and 8.75%. Unfortunately, most nightclub owners and all nightclub & bar owners alike, do not qualify for bank financing for one reason or another. Luckily, there are many other options to obtain nightclub working capital. There are also quick close products, like a merchant cash advance, cash flow loan or revenue based loan, that have higher effective interest rates, but require minimal paperwork and no collateral.

Here are 3 nightclub loan options for every stage of the business cycle:

#1. Business Expansion Loan - Designed for business owners with a certain level of success and financial security, our newest funding product provides large-scale investment for growth at our most competitive rates ever. The Business Expansion Loan represents our commitment to long-term partnerships and offers advantages in speed, simplicity, and flexibility that traditional nightclub & bar loans can’t match.

  • Access up to $150,000 in funding
  • 18 & 24-month terms for long-term investment
  • Rates ranging from 9.99%-36.00%
  • Automatic weekly payments, deducted from your bank account

#2. Working Capital Loan -

Built for healthy businesses with steady revenue, LVRG's Working Capital Loan is our simplest funding product yet. Money is automatically deducted from your business’s bank account on a daily basis. There are no checks to write, no payments to figure out, and absolutely no surprises.

  • Access up to $500,000 in funding
  • 6 to 18 month duration for short-term working capital needs
  • Factor rates as low as 1.15
  • Automatic daily payments, deducted from your bank account

#3. Merchant Cash Advance -

Unlike a loan, we provide you with business capital by purchasing a portion of your future receivables. Daily remittances are an agreed-upon percentage of your sales and are automatically deducted from your credit processor or bank account. Perfect for businesses with fluctuating revenue, the Merchant Cash Advance ensures that your remittances are always based on what you can afford, so you can grow, not just owe.

  • 3 to 14 month duration for short-term working capital needs
  • Factor rates as low as 1.15
  • Automatic daily payments, remitted as a percentage of your credit card receipts

Additionally, there are several other nightclub loan products that nightclub owners should consider for nightclub financing, including:

  • Cash Flow Loan - Type of debt financing, generally for working capital, using the expected cash flows that a borrowing company generates as collateral for the loan. You’re essentially borrowing from cash that you expect to receive in the future by giving the lender the rights to a predetermined amount of these receivables. Get up to $2 Million in as little as 24 hours, regardless of credit! LEARN MORE

  • Revenue Based Financing - Instead of a business being required to pay fixed interest payments like a typical bank loan, a revenue based loan is paid with a percentage of revenues. With loan amounts up to $2 Million dollars and funding in as little as 24 hours, it helps you grow your business and it does not saddle you down with long-term, highly encumbering debt. LEARN MORE

  • Small Business Line of Credit - A nightclub & bar line of credit provides flexibility that a regular business loan doesn’t. With a nightclub & bar line of credit, you can borrow up to $100,000 and pay interest only on the money borrowed. You then draw and repay funds as you wish, as long as you don’t exceed your credit limit. Need to manage cash flow? Buy inventory? Pay for a surprise expense? Then a business line of credit makes sense. GET STARTED

  • Small Business Loan - Get up to $2 Million to grow your business in as little as 24 hours. From purchasing inventory and equipment to remodeling and advertising, nightclub & bars need capital for many reasons. Our nightclub & bar loans may be used for any business expense, even if you just need an influx of capital to boost your cash flow. We offer both fixed and flexible repayment options, customizing your funding to meet your business's cash flow model. LEARN MORE

  • Small Business Term Loan - Small business term loans can get you the money you need to bridge cash flow gaps, handle emergencies and unexpected expenses or take advantage of a business opportunity. Funding amounts from $15,000 to $250,000 and terms of 3-24 months, a term loan from LVRG is nightclub & bar capital for big business growth. GET STARTED

  • Working Capital Loan - At any stage of growth, fast, flexible funding is essential to the continued success of your nightclub & bar. Our working capital loans feature 6 to 18 month terms and fixed payment options to accommodate your specific needs, so you can focus on what you do best, running and building your business. GET STARTED

Have questions about nightclub & bar financing?We've got answers! Call (855) 998-LVRG or click below.