Global Edition

 

$10m financing agreement for ProLink

12.20am 2nd March 2006 - Corporate

ProLink Holdings Corp. has signed a letter of intent to provide customer lease financing to ProLink’s golf course partners totalling up to $10 million over the next 12 months with a private equity investment group. The proceeds of this financing agreement will be available to facilitate customer purchases of ProLink GPS systems and is expected to accelerate the roll-out of the company’s patent-pending Pay-for-Play Partners program.
The Pay-for-Play program enables golf courses to lease the ProLink GPS systems without significant up-front expenditures, improving the sales cycle, charging golfers by the round to use the system and sharing revenues with ProLink. Under a Pay-for-Play arrangement, the system is offered to each golf group for a nominal fee.
The historical acceptance rate for this service has been approximately 94 percent, indicating strong demand from golfers who have see the inherent value in the ProLink system and are willing to pay a small fee to use it. Revenue from the GPS system represents the third largest income stream for golf courses behind greens fees and cart fees.
ProLink also anticipates expanding its financing division, ProLink Capital, to provide financing assistance to golf courses for other capital expenditures, including golf course improvements, golf turf and maintenance equipment, golf carts and other purchases.
“ProLink Capital has the opportunity to service a unique and expanding niche in the golf industry,” commented Danny Lam, president of ProLink Capital. “This agreement provides significant financing capital to our customers and allows us to both accelerate and execute our strategic vision. In the near term, this allows us to fully implement our new patent-pending Partners Pay-for-Play model, which combines the fixed lease and revenue share model, giving our golf course partners more flexibility and allowing them to hedge against economic and weather-related rounds risks.
“In the longer term, as we grow our portfolio, we will offer unique and profitable financing options for our golf course partners for their non-GPS expenditures, including expansion, new and renovated clubhouses, and general improvements. The end result is a turn key solution for our golf course partners, which translates into loyal customers and additional revenue streams for ProLink.”
Via its international distributors, ProLink is being rapidly adopted throughout Europe, South Africa, the Middle East, Australia and Japan.
ProLink www.goprolink.com

       

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