Member Article

£20k Microloan to help fuel Newcastle sports company's growth plans

GAC Sports has received a £20k loan from the Finance for Business North East Microloan Fund, a regional loan scheme managed by Rivers Capital Partners, to put its growth plans into practice.

The Newcastle-based sports equipment business is a wholesaler of fitness, mixed martial arts and other combat sports products. It acts as the counterpart business to commercial online retailer Fightstore Pro. Moreover, the company supplies clothes, protective gear and nutritional supplements, providing businesses such as gyms with everything they need to run everyday.

The North East Microloan Fund provides loans of £1,000-£25,000 to fund the ideas of small businesses which struggle to secure mainstream finance.

Director Alex Wright at GAC Sports started the company in late 2014, splitting up his original business Fightstore Pro into wholesale and retail divisions. This was to ensure that he had a clearer business strategy and to make the ordering process easier.

Alex was recommended the Microloan by his bank manager, who could not offer him a business loan himself.

Alex, who was glad that he decided to follow his bank’s advice, said: “There are thousands of businesses like me who are unable to get mainstream funding to expand.”

Alex felt like he had made the right decision by applying to the Fund, as the finance enabled him to open up a management role in another company and generating employment.

He will use the Microloan in a number of different ways to grow his new company. The majority of the cash boost will be used to fund the purchase of essential stock. However, some will be used for utilities, like any startup business.

With the loan’s assistance, Alex envisages his company expanding its customer base substantially. He wants to sell American sports products on an agency basis in the European market.

Nikita Bazko, Fund Manager at Rivers, said: “Alex is immensely experienced and as an ex- MMA fighter he knows the industry inside out.

“The cash investment from the Microloan Fund with help him achieve his vision of becoming the go-to wholesaler for sports retailers within a matter of years”.

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