- Loan type: Term loan
- Amount: $10,000
- Used for: New store front
Monti is the owner of a popular takeaway joint—The Butter Chicken Shop—serving up delicious curries, burgers and snacks.
Like many small business owners, he faced new, unexpected challenges brought about by COVID that directly affected his business.
The biggest one of all? Monti’s storefront was located in a shopping centre based in Eumemmerring, Victoria. The decision was made to close the centre indefinitely, bringing with it a significant decrease in foot traffic and revenue.
To keep The Butter Chicken Shop operating during such an uncertain time, Monti needed to reallocate...and he needed to do it fast.
Luckily, he was able to open a new storefront in a nearby suburb—an express version of the original shop—and his loyal customers followed him there.
This resulted in an additional revenue stream (30% more foot traffic, with the remaining 70% being online orders).
He even had customers passing by and asking “Are you the same business from the Eumemmerring shopping centre?”
So, what was the problem?
Monti realised that operating in a new location came with drawbacks. It meant leaving some of his old customers behind, and for those still making the trip—his much-loved food had suddenly become far less accessible.
On top of this, online food orders could only be fulfilled in select areas.
Monti saw a huge opportunity for his business (and had the hungry customers!) but didn’t have the capability to serve them.
He desperately needed a way to cater to his existing customers as well as those who lived outside the postcodes he could deliver to.
But the chances of Monti securing finance was looking grim: with COVID-19 making the future of so many businesses uncertain—especially those in hospitality—lenders have tightened their approval criteria, being more careful with who they allow to borrow.
This, along with reduced sales, made it almost impossible for Monti to get his hands on the finance he needed—even with a 90% retention rate from loyal customers!
However, with a helping hand from one of our New Business Advisers, Monti was able to secure a term loan of $10k from a non-bank lender, Lumi.
This allowed him to open up another storefront in his original location—Eumemmerring—to serve his existing customer base as well as those outside select postcodes eligible for delivery.
Monti’s revenue is now set to double and he’s currently looking at developing his business into a franchise. Congratulations, Monti!
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