Junction Restoration
When a strong year means a bigger tax bill, reinvest instead
A profitable year gave Barbell & Co. a choice between paying more of it out in taxes and putting it back into the business. Financing let them do the second one, on their own schedule.
"When you have a year like this one, you want to see it turn into something. For us, that was the spin studio and pilates space."
The Client
Barbell & Co. has spent every year since 2020 building a reputation as one of South Florida’s busiest boutique fitness studios, drawing a client base of local athletes, entertainers, and social media influencers. Heading into the fourth quarter, ownership wanted to upgrade the studio’s offerings to keep pace with a client base that expected more.
The Situation
Barbell & Co. was ready to expand with a new spin studio and specialty pilates space after a strong year, and December 31st gave that plan a reason to move sooner rather than later. Close before then, and the investment counted against this year’s taxes. Wait until January, and that same investment no longer helped.
“When you have a year like this one, you want to see it turn into something. For us, that was the spin studio and pilates space.”
The Challenge
Getting there meant convincing a lender to look past a business that leases its space and has no real estate or receivables to secure a loan against. A traditional lender underwriting the balance sheet alone would have seen a company with nothing to point to, regardless of how strong the revenue behind it was. It’s a common position for a B2C business to be in, and one we at National see often enough to have built a solution for it.
Barbell & Co. came to National Business Capital and connected with Casey, a Finance Business Advisor who looked past the missing collateral to the full picture.
What he saw instead was consistent revenue, a growing client base, and a clear plan for the funds.
Casey structured $525,000 in Term Loan financing around that revenue, built to:
- Get past the initial funding ceiling
- Cover the full expansion in one transaction
- Close before the tax deadline driving the decision
Why This Was Different
Most financing tied to a business like Barbell & Co. gets sized conservatively, matched to whatever the lender can verify on paper rather than what the business can actually support. This deal went the other way.
Casey structured the loan around the studio’s revenue trajectory, not just its current numbers, solving two problems at once. Underwriting the revenue instead of the balance sheet is what made a loan possible at all, and moving on that basis is what let National close fast enough to beat a tax deadline a slower process would have missed.
Why National Business Capital
National looks at the full shape of a business rather than the assets sitting on its balance sheet. For Barbell & Co., that meant a lending relationship built on the business as it actually operates, one that can move again the next time a decision comes with a deadline attached.
Today, Barbell & Co. has its new spin studio and specialty pilates space up and running, and ownership is already thinking about what’s next.
In a similar position? Let's talk.
Heading into your own strong fourth quarter? Let's connect.
Apply Now