Asset-Based Loan Local Barbershop Upgrades
Author: Valerie Mellema
Date posted: 10.15.22

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.

Amount Needed for Updates

 

Further conversations brought to light the equipment and extras that would be needed to update the barbershop. It turned out that a cool $100,000 would be plenty. This could give them the items they needed, the labor to install things, and a bit of a cushion if the numbers didn’t quite work out.

 

The main focus was on getting new chairs for clients, updating the lighting in the building, and going deeper with advertising. While the amount wasn’t outrageous, it also wasn’t something the owners were comfortable paying out of pocket.

 

Choosing the Right Financial Vehicle for Expansion

 

While 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 weren’t sure about taking out a traditional loan and instead did research into other options available to them.

 

In the end, the asset-based loan rose to the top in terms of benefits. Research was done to ensure it would meet the needs of the business before everyone agreed to move forward and go for it. It turned out to be an excellent decision.

What Makes the Asset-Based Loan Special?

 

 

Since the barbershop was doing good business and had plenty of equipment, it was easy to qualify for this type of loan. They followed through with it and immediately got to work making the changes that would modernize the barbershop.

 

What Happened After the Loan Was Acquired

 

Once the money was in the bank, the owners started working to get things up to their standards. It turned out that the loan was enough for them to get everything done with a bit of spare cash left in the end. Without a high interest rate, payments were no issue every month.

 

In the months since the barbershop got funding, it has become even more popular for those in the town and surrounding areas. Things are going well and profits are up. Thanks to the asset-based loan, the owners and their clients are even happier stepping inside the shop each day. It wouldn’t have been possible without the loan.

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.

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