BankCherokee Provides Working Capital to Support their Continued Growth
Fate may have played a part in bringing Estetica Salon & Spa owners LeeAnn and Andrew Jurgens together. Partners in life and in business, the pair met nearly three decades ago. Andrew was earning a degree in business at St. Thomas University, while LeeAnn had already begun her career as a hair stylist at a nearby St. Paul salon. On a whim, Andrew stopped into the shop for a haircut and LeeAnn was his stylist. That encounter was just the beginning of their story.
While Andrew knew he’d pursue a career in business, his specific path was yet to be determined. But LeeAnn had already developed her plan for the future. “LeeAnn is the only person I know who was 100 percent certain about what she wanted to do with her life from the age of 11,” Andrew said admiringly. “She knew she’d be a hair stylist and she knew she’d own a salon.”
A few years after the pair was married, LeeAnn ventured into a joint business partnership and opened a salon. When the partnership proved to be the wrong fit, Andrew decided to join his wife in the beauty business. They bought out the original partner with a loan from BankCherokee. “We knew it was the best approach to ensure the long-term success of the salon, and BankCherokee believed in our business plan—they believed in us,” Andrew said.
The Jurgens were able to pay off Estetica’s loan within 18 months and continued to partner with BankCherokee for all of their small business banking needs over the next 20-plus years. And a lot changed during that time. The Selby Avenue salon grew from 2,000 to 8,000 square feet in the historic Blair Arcade building. The service offerings expanded. And the number of stylists quadrupled. Today, Estetica features 20 styling chairs, five spa treatment rooms and a private nail salon—all designed to give clients an immersive and memorable Aveda experience.
With that growth came the realization that additional working capital was needed to cover some of the salon’s ongoing short-term debts—such as payroll and supply costs. They met with their banker Julie Novak, Vice President of Commercial Lending, to explore the options to increase Estetica’s working capital.
“Working capital is the cash available to cover a company’s day-to-day operational costs, after current liabilities are subtracted from current assets,” explained Julie. “For thriving businesses like Estetica, with lots of employees and product inventory, a working capital loan or line of credit can be a great tool for meeting debt obligations and remaining financially viable.”
A community bank helping start and grow small businesses for more than 100 years, BankCherokee is committed to providing business owners with the resources they need to be successful. “Securing a working capital loan is similar to securing other types of loans,” Julie said. “The business must have a good credit history, a solid track record of cash flow and adequate collateral to secure the loan or line of credit.”
Andrew described the process for securing a working capital line of credit from BankCherokee as quick and seamless. Within days of completing the paperwork, Estetica had the resources it needed to better manage cash flow. “Julie has been phenomenal to work with,” Andrew added. “She cares as much about the success of Estetica as we do.”
BankCherokee aims to make banking easy for all of its small business customers, so businesses can focus their time and energy on doing what they do best. To learn more about working capital loans and lines of credit, as well as additional business banking services offered by BankCherokee, contact Julie Novak today!