I’m planning to buy a beauty salon from my uncle, ideally by the end of the year. The salon has been around for 28 years, and except for 2020, it’s been profitable every year. The average revenue over the past 5 years is $440,000, and it’s only been open 4 days a week without taking on new clients in the last 2 years.
My uncle will be staying on for the next few years to help with the transition, making sure I get used to running the business, working with vendors, and even expanding the hours and hiring more stylists.
I’m looking to get a $150,000 loan to make this purchase. I’ve got $20k saved up for a down payment if needed, my credit score is 725, but I don’t have any assets to offer as collateral.
Has anyone here done something similar or heard of a situation like this? I’m trying to figure out what type of loan would be the best fit for this scenario. Any advice would be appreciated 