Mostly from savings, family, personal loans or the proceeds of another business, sometimes with part of the price paid to you in instalments. High-street banks lend to salon buyers less often than people expect, so the price has to be one a buyer can actually raise.
Many salon buyers are stylists or therapists buying their first business. They usually fund the purchase from savings, family support, remortgaging or personal borrowing. Government-backed Start Up Loans offer personal loans of up to £25,000, though applicants should check with them whether buying an existing business qualifies.
When banks lend
A bank will look for a buyer with salon experience, a deposit, accounts that show the profit, and a lease longer than the loan. Without those, bank funding is unlikely, which is why clean accounts and a secure lease widen your pool of buyers.
Deferred payments
Where a buyer cannot raise the whole price, sellers sometimes accept part of it in instalments after completion. It can get a deal done, but you are then relying on the buyer running the salon well, so take legal advice and keep the deferred part modest.
Sources
- Start Up Loans (British Business Bank) startuploans.co.uk