Secure Your Financing for a Barber Stop
Information on this page helps you understand how to finance your Barber Stop single chair barber shop. Included here are a few ideas about loan sources, loan down payments, loan periods and the importance of a having a formal written business plan. As you'll see further down this page, the Barber Stop team is big on support. Helping new kiosk owners build business plans is something we can help you do it you need us to.
There are many good sources of funds available to skilled, reliable people wanting to implement good ideas. The Barber Stop is a good idea based on a solid, innovative new business model. If you become convinced that a Barber Stop is right for you, we can help you find a business loan if you need our help.
Many bankers require a down payment of approximately $7,500 to obtain a business loan for a Barber Stop. The loan is typically 2 to 3 years in length. The monthly payment on a 3 year loan at a competitive interest rate is between $500 and $700. Of course, there is a higher monthly payment on a 2 year loan but your kiosk is paid off a year earlier.
What's Best? - a 2 Year or 3 Year Loan?
That depends. If you already have a stream of income from an existing client base, a 2 year loan may be best. That's especially true if you are paying another barber chair rental fees of between $150 and $200 per week. You want to stop paying chair rental fees and OWN all of your business as quickly as possible.
A 3 year loan may be best if you're a new barber just beginning to build your client base. A smaller payment spread over a longer period of time reduces your monthly costs and therefore your risk. If your customer base builds faster than your business plan forecasts, many banks let you pay off the loan faster without penalty. Make SURE your loan agreement has a stipulation allowing you to pay off the loan early WITHOUT paying additional interest or a penalty fee.
Develop a Business Plan
It pays to develop a formal, written business plan. Here are some of the most important ways your business will benefit.
Never Written a Business Plan?
Don't worry. The Barber Stop team is happy to help you develop this very important document. Contact Joe Sexton, V.P. Barber Stop to learn more about getting Business Plan Development help. Cell: 608-397-0155, Email: JoeSexton@BarberStop.com