Business loans for Independent UK Music Venues


Business loans for Independent UK Music VenuesEarlier this week it was announced by the UK government that they would be helping to fund our arts, heritage and culture industries with a £1.57billion bailout in order to weather the impact of Coronavirus. While this is great news, it took an awful lot of pushing from all angles within the industry to get it over the line and the fact of the matter is it has come to late to save a large amount of music venues across the country.

The support package in question was announced on 5th July, it is designed to provide many cinemas, museums, galleries, music venues and heritage sites with some emergency loans and grants. For many it is too late however, the industry itself has taken a massive blow since lockdown began, due to the spread of Covid-19.

Business Finance for Music Venues

Emergency loans should be quick, hence their name, but it has taken an awful lot of time to get this pushed across the line. Of course, all of this money won’t come in the form of a grant, even though the majority of it will. The overall loan includes £270million of repayable finance, which will be owed to the government. That is to be expected though, as this country doesn’t have an endless source of funding to fix all problems we may face.

It is no question that he investment is extremely large though, the government have proven their value of music and film, as well as the acknowledgment for the positive cultural effect it has on this country. The amount of cash that’s been decided on by the government totals to the largest one-off investment UK culture has ever received.

For smaller, independent venues, help has been harder to come by, as it often can be. Though, within the world of live music, it is in fact these smaller-scaled places that hold such a special part of our entertainment culture. That’s why we believe that independent music venues are worth saving and we aim to help them in any way that we can.

If you’re the owner of a small business in the form of a music venue, there are many funding options for you to consider when you find yourself in a spot of financial bother. Below you will find a list of different paths you can take to receive funding that could potentially save your business, or simply advance it to a higher level if that is what you wish to do. It is also key to be aware that if your business is struggling, you’re not alone in your struggles, as the vast majority of ventures have been left in the same state this year, due to the effects of Coronavirus.

Shared problems across the pond

Over in the United States of America, small and independent music venues are struggling in terms of their financials, as they are here in the UK, as paying customers are still not allowed in. Live music shows are still not allowed to take place, other than at a few drive-in locations (something that isn’t as common here in England).

NME have stated that, “Because of the lack of revenue, many are now in dire straits and have banded together to call on US lawmakers to follow in the footsteps of the UK government and pass legislation to fund arts spaces – saying without government assistance up to 90 per cent of venues will have to close permanently”.

It seems as though the funding issues surrounding music venues aren’t only applicable to the UK, but what does that mean for the future of the live music industry? We can logically suggest that live music will be making its return by utilising outdoor spaces before it takes things back inside.

We’re already beginning to see the likes of the aforementioned drive-in music gigs, which will likely lead to musicians trying to cash in with other outdoor endeavours; you wouldn’t be able to blame them, especially smaller acts that will have been struggling for cash all this time.

The financial struggle over in America has lead to some fundraising activities taking place, as reported by Variety. They explain how charity events; such as virtual online gigs, have been able to help in raising funds for those who need it most in the arts industry right now. They state, “Last weekend’s “Save Our Stages” virtual music festival — featuring Foo Fighters, Miley Cyrus, Dave Matthews and more than 30 other artists — has raised more than $1.8 million to help preserve independent music venues. The news was announced Thursday by YouTube Music and the National Independent Venue Association (NIVA), which promoted the festival”.

World famous stars can certainly play a part in bringing in that all important cash at charity venues such as this. We hope to see some of these virtual charity gigs taking place in the UK over the coming months, as that would be an ideal and extremely helpful way of raising funds for those independent business owners that need it the most, in order to keep their respective live music venues alive and well.

The effects of Covid-19 look as if they’re here to stay for a pretty extensive amount of time, so it is likely that the difficulties music venues are facing around the world, will unfortunately be staying put going into 2021.

This all leads us to believing that now, more than ever before, small and independent music venues will be in need of financial aid. This goes past what the government have had to offer them thus far, and so an increasing number are starting to look for methods of alternative and unsecure funding. This is where we can help to connect you with the right people, though we’ll talk more about that as this article continues.

Business Loans for UK venues

Here at PDQ Funding, we offer unsecured business loans to companies of all kinds, including music venues. This type of loan will allow a lump sum of money for development of your bricks & mortar shop or online store. Some lenders that offer loans to retailers often require a personal guarantee. This legal status of a personal guarantee is there so if your business was to default on loan repayments, you as the business owner becoming personally liable for paying back the money.

The most traditional form of lending within this type of sector is a bank overdraft, although for larger amounts with longer repayment periods, most traders will opt for secured loans. These types of loans are commonly available from banks and other traditional lenders and will usually require a strong financial history.

The small business loan will generally provide low fixed interest rates, with repayments set at equal amounts which are repaid each month for a set period of time. Criteria between lenders varies significantly but in general but lenders will be looking to loan to businesses with a strong financial record and an excellent credit rating. PDQ Funding interest rates are comparable with an overdraft and the repayment terms will be dependent on your business structure.

Merchant Cash Advance for Music Venues

This funding option is suited to businesses of all sizes, so whether you own a small or large business, you won’t be let down by our working capital product. Our Business cash advance is an alternative unsecured business loan, which means it’s a flexible funding option for you, and has no requirement to secure any personal or business assets against the loan.

Our cash advance calculates how much your business can borrow by factoring in your monthly credit and debit card transactions. The percentage of each future card sale that is repaid to your lender is agreed prior to the conduction of the loan. This means you’ll know exactly how much you’re going to have to pay back with each sale, plus you’ll know that you only start the repayments once you’re making sales.

The simplest way of looking at it is that if your retail business has a slow sales week, you’ll repay less. Therefore, you won’t be under the constant pressure of attempting to reach a certain amount of profit each week. There are no hidden costs or fees, so you won’t be on the receiving end of a nasty shock once you take out a cash advance with PDQ Funding.

  • Get £5k to £200k within 24 hours
  • Pay back through your future card sales
  • Unsecured – there’s no worries
  • Same day funding to your business

Are UK Music Venues Eligible for A Merchant Cash Advance?

 Your business is eligible for a merchant advance if you meet the following criteria:

  • Your business is registered in the UK
  • You have selling products for 6 months or more
  • The business has credit and debit card transactions of £5,000 per month or more

Documents Required to Apply

The following documents will be requested by your business manager once the online application has been completed. Please have the following documentation available:

  • 6 months of merchant credit card sales statement 
  • 3 months of business bank statements

The advantages to unsecured business loans

In theory, unsecured loans are a less risky borrowing option because there’s no danger of losing any assets if you can no longer repay any debt you find yourself owing. They can also offer more flexibility than secured loans, with lenders tending to offer repayment terms of anything from one month to three years. This amount of flexibility is a perfect fit for many retail shop owners, as the level of business you receive may be dependent on the time of year it is and other unpredictable factors may play a part in the proceedings.

An unsecured loan basically means it’s not secured against property or other collateral, many lenders will be happy to top up an unsecured loan once a company has made a certain number of successful repayments, and will also offer repayment holidays as an additional benefit. Though, this information is likely to differ from lender to lender, so be sure to do your research before jumping into an agreement you don’t fully understand yourself.

Our quick four bullet points on things you need to know about our unsecured finance:

  • Applications can take just 10 minutes to receive a lump sum of £5,000 – £200,000
  • Repayments are to be made every month at a set interest rate
  • The loan is unsecured, but you may be asked to sign a guarantee
  • If you do not hold a great credit score, you can still be accepted

We understand that the high street is ever changing and businesses can have a difficult time keeping up with the new demands of the retail sector. So a unsecured loan may just be what you need to support your business, and even help it to take the next step. The application for business funding only takes a few minutes of your time, and a decision will most likely be made on that same day. This means that the money can be released to you, in most cases, within five days of you submitting your application.

Unsecured Funding could be the way to save your independent venue

If you believe that your music venue could benefit from a short term boost of funds, then the unsecured business loan is likely the best option for your venture’s situation. The option of an injection of short term capital could be chosen for many reasons by business owners. It may be because you need to stabilise your company after a rough period, such as a dry sales month, or just that you can see ways to advance your company that are just a little out of budget.

The short-term unsecured business loan is far easier to make repayments on than other shorter-term options, this is because there will obviously be less payments to actually make, and the loan itself will normally be for a much smaller amount. Choosing an unsecured loan from PDQ Funding is a great opportunity for small music venues to upgrade their business model, or make quick fixes they need to make in order to ensure the future is bright and to maximise cash flow.

It’s important to remember that making regular updates and upgrades to your venture can keep current customers enthralled and excited to shop with you, but also attract newcomers to your company, presenting you with new avenues of income and funding.

We’ve helped thousands of businesses just like yours get the funding they need for:

  • Training new staff
  • Purchasing new stock or equipment
  • Refurbishing premises
  • Relocation
  • Advertising
  • Helping with cash flow
  • Building a new website

Business loans or cash advance can be used for many different purposes. You may wish to use it to invest in new stock, move your business to a new location, or help to cover your payroll costs, it’s entirely up to you. You can apply for a free no obligation quote today and find out if your business qualifies for our services.

How to apply for an independent music venue business loan:

Step 1:

Visit our application page and provide the relevant information. This will ensure that we match you with an ideal lender. We will then ask you for further information about your business. You’ll need to be ready to tell us the following:

  • The name of your business
  • How long you’ve been in business
  • Your average monthly card sales
  • Amount you are looking to borrow and over what period

Step 2:

Will will then require a few personal details, so please be ready to tell us:

  • Your title, along with you first name and surname
  • Position you hold within the business that is seeking a loan
  • Email and telephone number, so that we can stay in further contact with you

Step 3:

Read through our terms and conditions carefully, and if you’re happy to continue, click get a quote’. From here your application will be processed and reviewed by a member of our business finance suppliers team, who will help you find the correct lender for your emergency business loan.

Step 4:

We will then be in touch with you to confirm the conditions of your business loan agreement.

Step 5:

Once the application is complete, it will be sent off and approved by a lender. You can then have a discussion with them regarding the terms of the loan. These terms will include interest rates, as well as how much the borrower will repay each month. The loan is then provided to you on an agreed and transparent basis. As one of the UK’s leading merchant cash advance companies, we are here to support the growth of your business with alternative business funding.

Small music venues in the UK need all the help they can get at the moment. The government has pledged a lot of financial help towards the industry, but unsecured funding may be just the help some of our smaller, independently owned venues need at this moment in time. If you believe we can offer you the help you need, why not get into contact with us today and receive a free quote? It’ll give you a great idea of how you can develop your business ideas or save your company from falling apart.