A second studio, financed against the first
Kayla had a fitness studio that ran at 86 percent capacity and a waitlist that wouldn't quit. The second location wasn't a question of demand — it was a question of how to capitalize it without giving up half of either business.
The first studio had three years of consistent monthly recurring revenue, a clean P&L, and a small SBA balance she had been paying on time for 28 months. The opportunity was a 2,800-square-foot space ten minutes away that had been a yoga studio in a previous life.
Two different investors had offered to come in for 30 percent of the second location for $250K. The math worked for them. The math did not work for her.
Her personal profile was a 754 mid-FICO. Her business profile was solid. She had never built a real funding ask before.
The platform built the funding ask the way an SBA underwriter would actually read it: existing operation as the cash-flow engine, second location as the growth case, total ask sized to actual buildout cost plus three months of payroll runway. No equity dilution. No 'just-in-case' over-borrow.
- 01Compiled 3 years of clean tax returns, P&L, and recurring-revenue MRR data into one packet
- 02Updated the existing SBA-on-file payment history into the new application as a positive signal
- 03Sourced two contractor bids for the buildout to anchor the use-of-funds memo
- 04Submitted to an SBA-preferred lender, with a community bank as a backup
- 05Declined both equity offers in writing once the SBA term sheet came in
“The second studio is mine. I was about to sell a third of it for capital I could borrow.”