italianrsc

Hey Guys/Gals:

I'm not sure where to post this, but I need some help in financing an expansion. Does anyone know where to go for industry specific loans? My personal and business finances are good, but with the banking issues going on I don't know if we can fund this without some expert knowledge. Most banks I've spoken too really don't understand the industry or think it is to "risky". Any thoughts??


JR

txsanchez

Great question. I am in the same boat. I have 4 extra beds after doing some upgrades and have the opportunity to expand into another small town. Any financial contacts would be appreciated

parrot head

Good luck with that. If you've done business with a local bank and your credit rating is excellent, and if you have a high net worth, and if you are basicly debt free, you might have a chance. Tanning salon loans are very iffy and with todays tight credit you still might be out of luck.

Woodlands

I have excellent credit, no debt except my home, 7 years great experience with a local bank and land as collateral and was STILL turned down for a business loan. IMO you can get one, but the terms might be a pound of flesh as interest :(

parrot head

This is an end to an era as we know it. Don't think about expanding, think about surviving. The government is out of options about saving this economy and the many thousands of 401's that made up the very foundation of retirement. Retirement will not happen for a vast majority.

sunsally

It depends on what you are specifically trying to do.

Highline Capital and other leasing companies offer financing for the equipment itself - the beds, timers, buckboosters, delivery & install, etc.

Leases however do NOT cover buying an existing business (this is a loan), doing redecorating, working capital, etc.

For those things, you can try a variety of sources:

1. Home Equity Loan or Line

2. Personal or Business Loan - regular or through SBA (Small Business Administration).

3. Loans from your personal 401K to yourself

4. Bringing in other partners/investors and giving them a piece of the business

5. Credit cards (not recommended)

6. Loan from the landlord built into the lease in the form of higher rent (e.g. they give you 30K to use toward buildout, you pay it back over the life of the rental agreement you sign)



At Highline we have the most competitive rates in the industry. However - you have to have good credit. As your credit goes down, there are other leasing companies who may take on your project - but your rates may go up accordingly of course to make up for the extra risk.


At Highline we also have some repo equipment - so in some cases clients can find some quality equipment at reduced prices to add as part of their mix - and finance the whole package of new and used equipment.


Best advice I can give ANYONE though -- if you do NOT have enough capital - PLENTY to get started, account for unexpected expenses AND keep the place open for up to a year if revenues aren't as high as your costs - then wait until you do. Opening ANY new business is a risk, opening in this economic climate is more risky, and the tanning industry is certainly no "gimme" anymore. Be smart.