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Cabello Hair and Beauty

Cabello Hair and Beauty

Situation

Kathryn Berale, owner and manager of Cabello Hair and Beauty in Witham, Essex, counts her success not only by operating a profitable, award winning salon but also because her salon’s services are improving the well-being of the planet. They do this through increasing awareness of environmentally sound products and practices and through the charitable and financial support she and her team give to local organisations and charities.

Kathryn’s business has been operational since 2014 and as of 2018 employs twelve full-time staff.  During this time Kathryn has stuck to her principles of using only eco-friendly, organic and environmentally responsible hairdressing products. The salon has won various industry awards too, including Best Eco-Friendly Salon in Essex, and is currently recruiting new stylists to help meet ever increasing demand.

At the beginning however, Kathryn was unable to get a business loan from her bank.

Solution

Undeterred, Kathryn became aware that Foundation East provides business loans and support to excluded entrepreneurs. 

“Kathryn’s business plan was comprehensive. She had identified a consumer trend towards purchasing sulphate and paraben free keratin-infused organic hair, had identified a good location, reliable suppliers and had weighed up the competition. She’d lined up staff, many of whom had worked for Kathryn in the past and had calculated realistic financial projections that evidenced profitability and an ability to repay a loan. Kathryn’s proposition met all of our criteria and we were able to offer her a startup loan which enabled her to refurbish the premises and provide some working capital during the early phase”, advises Becky Allen, portfolio manager at Foundation East.

Success

Kathryn has now been able to prove her business worthy of mainstream finance and has secured a loan from her bank to enable her to fund the next growth phase of the salon.

“I will never forget how Foundation East gave me my fresh start though. Without them, I’d have never been in a position to have my own business again. Responsible Finance companies, like Foundation East, are not for profit businesses. This appealed to me because any surplus they make is re-invested into more small businesses like mine, to help when the bank says no. Ultimately, it’s the community that benefits from their work, not anonymous shareholders. It’s a good feeling to know that that another small business owner who is struggling will get the same support I did" advises Kathryn.

"Foundation East is funded through people and businesses investing in ordinary and Community Investment Tax Relief (CITR) shares. Getting a loan from them gave us the opportunity to re-start our lives. We are so happy every day and we pinch ourselves that we could get the team back together to create a super successful salon that not only makes profit but supports the community and the environment. I encourage local businesses and people wanting to make a difference to their community to invest in Foundation East,” concludes Kathryn.

Kathryn could not have set up her eco-friendly hair salon without people like you investing in our CITR shares.

Here’s the deal:

You buy CITR shares in Foundation East. We loan your investment to business owners who are disadvantaged due to age, disability, gender, ethnicity or postcode. You get 25% tax relief on your investment over five years. Our clients, like Kathryn, get to set up their dream business and to contribute positively to their communities.

It’s a win win!

Find out more about investing in Foundation East CITR shares here