How A Multi-Location Salon Chain Used Working Capital To Refresh Its Brand

A salon group with strong word of mouth was starting to lose ground to newer competitors with modern spaces and polished online booking. Décor felt dated, online reviews were inconsistent, and retail product sales were flat yet the owners could not secure enough bank financing to renovate all three locations at once.

Trying to stage renovations one location at a time from operating cash risked long closures and uneven client experience, and bank lenders were hesitant to underwrite based on traditional collateral instead of point of sale data and client demand.

Purple Tree Funding reviewed three years of sales by location and service type plus point of sale product data and online reputation trends then provided a one hundred thirty thousand dollar working capital advance that covered renovations and set aside a dedicated six month marketing budget with repayment matched to monthly card sales.

One year after the refresh the salons reported a thirty eight percent increase in new client bookings, a thirty two percent rise in retail product revenue, higher stylist retention due to improved workspaces, and a stronger online reputation with average ratings above four point seven stars.