Going for Gold

          – The rules of getting finance

Other methods of finance have other criteria:

ASSET FINANCE

This is where you borrow against something physical from a car to a backwash or a computer system.

Like the banks, they will look at your capacity to repay but they will be just as interested in what value the asset will retain over the life of the loan. So it will be no surprise to learn that it is easier to borrow money against a car than most other things in this area.

The good news is that asset finance can be arranged through the people selling you the asset -  they take a commission from the deal as well as profit from what they sell. As they want you to buy, they are going to try and help as much as possible to make the deal happen.

This type of finance is a really good way of completing a project like a refurbishment. Companies like Wella/Welonda have a variety of schemes to help salons achieve refurbishment plans that are linked to their knowledge of how a hairdressing business works but are also designed to ensure that the salon uses as many Wella products as feasible. Schemes like this can work for both parties as long as you as the salon owner are clear what they are trying to achieve from the outset.

So again you need to be able to clearly advise the financier where the money is going to be generated from to repay them and have a good personal and company finance history to get the money.

BUSINESS ANGELS

Over the last few years there have been a number of investors attracted to the hairdressing industry because we are a cash industry and the business needs high street property.

A typical business angel is not only looking to put money into an enterprise they also want to be involved in the management of the business to protect their investment and help it grow.

So where do you find this good looking solution? A good starting point is www.bbaa.org.uk

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