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Is the Bank Your Only Option?

By: Mark E. Battersby
Posted: February 28, 2011, from the March 2011 issue of Skin Inc. magazine.

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Obviously, financing any spa is a complex affair further complicated by the current credit crunch. Making matters worse, longer-dated corporate and government debt is due for refinancing in 2012 and later. Massive demand for new money from capital markets is coming, and it is coming from all corners. In 2012, more than $860 billion of U.S. government bonds will reach maturity and require refinancing. Add to that an anticipated and still-growing federal deficit that will also need to be funded. During the same period, companies that borrowed on easy terms between 2003–2008 will be seeking to roll over their debts by taking out new loans.

Fortunately, many spas can avoid the upcoming credit crunch while, at the same time, side-stepping today’s spotty capital shortages by using alternative financing.

Mark E. Battersby has been providing professionaly prepared editorial material for magazines, newsletters, reports and websites for more than 25 years. Each week, his topical columns are syndicated in more than 65 publications. He writes monthly columns for 14 trade magazines and has authored four books.