By Kevin McGrath
Five Points Academy
Five Points Academy is the largest Muay Thai school on the east coast. Soon to be located at 277 Canal, we have been in business in Manhattan for almost 6 years. We teach Muay Thai
By Kevin McGrath
kickboxing and also have a full service fitness facility. We also produce world class kickboxing competitions four times a year at the Roseland Ballroom. Our next event is Thursday October 2, 2008.
About six months ago my partners Simon Burgess, Stephen Milles and myself started to look at the remaining 4 years of our existing lease. Being proactive, we decided to look at larger spaces in the neighborhood to house our ever growing gym membership. We found a great space a block away located at 277 Canal St. We began at once to file the appropriate paper work with banks in order to get the needed capital to make the move. We have great credit, and 6 years of excellent tax returns.We submitted the papers in June 08. In the mean time, more and more bad news continued to hit the AP with the housing crisis, the national debt, and the Fannie Mae and Freddie Mac bailout. We were told by one of the banks that the health and fitness industry were red flagged and viewed upon as a high risk for lenders. This was due to the fact that people would cancel their gym memberships in this type of economy. This has not been the case. In fact, we even had our best month ever this past July 08.
We got the run around for almost two months and bounced from one bank to the next. Never a rejection, but not a concrete yes either. The other revelation was the bank we thought would be approving the loan was actually just another middle man brokering our deal to another lender.
We decided that if we didn't move fast, we would lose the new space and a great opportunity. So, we picked up the phone and contacted several members who loved our club, participated in all our events and believed in our product. We raised approximately $175,000 in about 2 days. We secured these notes personally, and all transactions were over looked by our attorney. AND we did better from an interest stand point as well rather than going through a bank. Once again, as I continue to learn over and over- its always up to YOU to make things happen. We are planning to open at 277 Canal St on November 1, 2008. All are welcome.