Why The Bank Turned My Financing Down?

The truth is.... The way the lending institutions see it is that many Salon/Spa owners are technically trained and highly skilled stylist that decided to open a salon/spa. Many are equipped with a business plan and capital that was acquired from family, friends, home equity, and monies borrowed on or from assets that they may have.

The truth of the matter is a salon/spa in the start up phase in today’s business financial climate is considered a high risk business model from the banks perspective that has no real assets unless you own the building. A franchise model is evaluated differently and is considered a lower risk because it is a proven business model that has a consistent track record. Our perspective at 812112 is that if you can borrow money to start one then you can buy an existing operation.