Local Barbershop Upgrades
Asset-Based Loan Local Barbershop Upgrades
Author: Valerie Mellema
Date posted: 12.09.24

Located in the Midwest, a local barbershop had been a staple for decades. The company was passed down when the original owner retired and the new owners were excited to be a part of a shop that had proven integral to the community. With new owners in place, new ideas spawned about how to make the barber shop even better than it was now. The barbershop was doing great and it was important to keep that going for future generations. Everyone was happy to move forward and build on previous success in the neighborhood. But what if the barbershop could be even better?

The Need for Financing

 

Since the new owners had big plans, it was clear that some sort of loan or financial help would be needed. There was no need to completely change up the shop since it was doing well as it was. However, some of the equipment and goods used in the barbershop were getting a bit old and could use updating.

 

The owners had several conversations about changes and updates that should be made before moving forward to find financing. That just left them to determine how large of a loan was needed.

Local Barbershop Upgrades

The Amount Needed for Updates

 

In further conversations, the owners discussed the equipment and extras required to update the barbershop. To their surprise, they found that a cool $100,000 would be more than enough. This sum would cover the items they needed and the labor for installation. It would also leave a financial cushion if the numbers didn’t quite work out.

Their primary focus centered on acquiring new chairs for clients, updating the building’s lighting, and enhancing their advertising efforts. Although the amount wasn’t excessive, it still exceeded what the owners were comfortable paying out of pocket.

 

Choosing the Right Financial Vehicle for Expansion

Although most people assume a business term loan is the default choice for financing a commercial business, it isn’t the only option. The owners of the barbershop were unsure about taking out a traditional loan. Therefore, they actively researched other available options.

In the end, the asset-based loan emerged as the top choice in terms of benefits. They conducted thorough research to ensure it would meet the business’s needs before everyone unanimously agreed to move forward with it. This decision proved to be an excellent one.

What Makes the Asset-Based Loan Special?

 

Qualifying for this type of loan was effortless due to the barbershop’s good business and abundance of equipment. Consequently, they promptly followed through, wasting no time to make the changes that would modernize the barbershop.

 

After Acquiring the Loan, What Happened?

Once the money was in the bank, the owners immediately started working to get things up to their standards. To their delight, they found that the loan proved sufficient, covering all necessary expenses and leaving a bit of spare cash in the end. The absence of a high interest rate made monthly payments hassle-free.

 

In the months since the barbershop got funding, it has witnessed a surge in popularity among those in the town and surrounding areas. Notably, things are going well, and profits are on the rise. The asset-based loan has contributed significantly to the owners’ and clients’ increased satisfaction when stepping inside the shop each day. This remarkable progress wouldn’t have been possible without the loan’s support.

Local Barbershop Upgrades
About The Author | Valerie Mellema

Valerie has over 16 years of experience as a professional writer of blogs, eBooks, articles and press releases, with a focus on finance and alternative lending. Valerie resides with her family in Texas and is passionate about her horses.

What’s New

All Resources
All Resources