Nearly every event company has been in a situation where they missed out on an amazing client because they didn’t have the funds to take on the project. Custom items, extra staff, and the need to quickly purchase more items are factors that can quickly discourage an event company from taking on big events. But how much would your business change if you could take on these rockstar clients?
Enter: the capital loan. Capital loans are short-term loans that are designed to get businesses through challenges and hurdles, but not to pay for high-dollar investments that will take more time to pay off. Capital loans won’t dilute your equity, there are no restrictions on how you spend the funds, and you generally receive funds within a few business days after approval. Because the event industry is a fast-paced, ever-changing environment, business owners frequently need to be able to pivot on a dime. Capital loans can make fast transitions easier.
Combat The Slow Season
No matter what types of events you specialize in, there’s going to be a slow season. It’s a natural part of the business— after all, you can’t use a bounce house when there’s 2 feet of snow on the ground, and couples tend to not plan weddings during rainy seasons.
Slow seasons can mean that money gets tight. Bills can stack up, you may need to reduce your staff, and sometimes taking on new clients when things start to get busy again can be difficult (especially if you need to purchase items for the event). This is a great time to consider taking out a capital loan. The extra money can be used to keep your business running smoothly until the bookings start rolling in again. The slow season can change from a time of financial stress to a time of growth!
Need More Inventory? You Got It!
The answer is always “yes” for event companies! More inventory means more capacity for events, which means more money. Capital loans are a great way to boost your inventory quickly— and you’ll be able to pay the loan back by renting out the new inventory items you just purchased. Whether you need extra inventory items for a specific event, you’re simply adding to your most popular items, or trying something new, capital loans are a great way to get new inventory into your warehouse so you can start booking more events.
Get COVID-19 Assistance
The COVID-19 pandemic has created a whole new world for all of us. Drop offs in events, sudden cancellations and restrictions, and the need for new equipment and sanitization items all cost money. A sudden cancellation or a new restriction can be financially disastrous for an event company, but a capital loan can take some of the sting out of the blow to your finances. While it’s important to save where you can and have contingency plans in place for these situations, you can’t plan for everything— surprises happen. A well-timed capital loan can be just what you need to keep your business running smoothly.
Obtain The VIP Client
A high-dollar client approaches you to take on their event, but you know that the labor and inventory costs are outside of your budget. You also know that this event will pay for the labor and new inventory… but only after it’s over. Time to take a capital loan!
It’s not uncommon for event companies to have high up-front costs that will quickly pay for themselves after an event or two. These situations are ideal for taking a capital loan, as you already know that you’ll be able to cover the loan quickly.
As you can see, event companies regularly encounter situations that could benefit from capital loans. It’s almost as if this type of loan was created for the event industry! When managed properly, capital loans can become an invaluable tool for sustaining and growing your event business. Plus, our qualified Goodshuffle Pro users can benefit from Goodshuffle Pro’s Stripe Capital loan program, which allows you to take capital loans with no credit check, no interest, and no surprise fees. The process is simple, and it’s a proven game-changer for our clients!
Curious how Goodshuffle Pro can empower your event rental company?