Hi, I have a few questions. I have been established as a cosmetologist for four years, I work at what is called a commission salon right now, I am ready to move on in my industry and start up my own salon that would be "booth rental" salon. I have found a building that is either for sale, lease, or rent to own. It was also a Hair salon but doesn't have the equipment left in it. I have a low credit score that is that makes me intimidated to even try this. I would love to get a loan and purchase the building, but off my income only I don't think that would be possible. I have talked to the landlord about leasing and I could manage the payments myself and would do even better if I got a couple girls in there to help with the lease. My main question is where do I start? I was thinking a micro loan product would be the way since I really just need the money to buy equipment etc. But, can you even get a loan like that with fair to poor credit? What are usually the stipulations? Do I just talk to a local bank and see if I can get a loan? Do I usually need a lot of cash on hand? Any help would be great. I really would hate to just walk into a bank blindly not knowing anything about sba loans. Any advice would be greatly appreciated thanks!
As you may know, SBA loans are not loans from the Small Business
Administration to the public. They are not a lender of funds, but a guarantor
to loans placed by a participating lending institution such as your local
bank perhaps. The program of your particular interest seems to be the 7(a)
program. This website provides ample information on it and a list of
preferred lenders whom can assist you.
If you find your current credit status is a barrier, you may have to seek a
specialty financier that engages in financing target industries, or
geographic areas for example. I hope this helps.
Your recent post has been moved. Please review our Community Best Practices (http://www.sba.gov/community) for more information about how best to participate in our online discussions. Thank you.
Hi, I just downloaded at cloud based POS app for Iphone, Ipad, and web use
called IConnect. Does anyone have any experience with this app? I am opening
a salon in April and using this app will save me thousands of dollars. I
would just like to hear if anyone else had used it.
Actually, get a lot of counciling from SCORE and get your business plan
together first, but after that, go to your professional supply houses,
because they are much more willing to work with you, low rates etc., and
offer industry specific consultation, as well as classes and other support
systems. they are all about seeing you succeed because you have purchased a
package deal from them. Banks are not the best avenue to go to first off
because they don't understand our industry.
kmurray | Community Moderator |
12/21/2011 - 12:33 pm
Hi,
A good place to start is with a SBA resource partner: SCORE, Small Business Development Centers or Women’s Business Centers. These organizations provide free business counseling and training. To find your nearest SBA resource partner, enter your zip code at SBA Direct.
You'll be able to talk to someone and get these specific questions answered and get headed in the right direction.
We have great resources on the site, too- check out our "Thinking About Starting" a business for information.
You may want to visit with a counselor at a small business development center or a SCORE office. Their services are free. They can help you determine all your needs (equipment, utilities, etc.) and recommend how best to proceed. Once you have all the facts, you can then determine how much you will need to borrow and whether you can handle the payments or even qualify for a loan. If you don't qualify at this point, you may want to spend a year or two working to improve your credit score, then reconsider your plans.
CSDIII | Window Shopper | 3/6/2013 - 5:31 pm
As you may know, SBA loans are not loans from the Small Business
Administration to the public. They are not a lender of funds, but a guarantor
to loans placed by a participating lending institution such as your local
bank perhaps. The program of your particular interest seems to be the 7(a)
program. This website provides ample information on it and a list of
preferred lenders whom can assist you.
If you find your current credit status is a barrier, you may have to seek a
specialty financier that engages in financing target industries, or
geographic areas for example. I hope this helps.
Kindest Regards,
Robert2000 | Window Shopper | 2/27/2013 - 7:18 am
dmoore | Window Shopper | 2/21/2013 - 6:04 pm
called IConnect. Does anyone have any experience with this app? I am opening
a salon in April and using this app will save me thousands of dollars. I
would just like to hear if anyone else had used it.
Thanks
gsampson | Window Shopper | 9/7/2012 - 2:18 pm
together first, but after that, go to your professional supply houses,
because they are much more willing to work with you, low rates etc., and
offer industry specific consultation, as well as classes and other support
systems. they are all about seeing you succeed because you have purchased a
package deal from them. Banks are not the best avenue to go to first off
because they don't understand our industry.
kmurray | Community Moderator | 12/21/2011 - 12:33 pm
BizResearcher | Window Shopper | 12/20/2011 - 1:18 pm
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