How Two Business Owners Successfully Partnered With Their Bank Despite Today’s Economy

by Julia Paulus

Getting a loan or line of credit may seem next to impossible these days.  But for Jessica Cooke and Deanna Seithel, owners of Yuppy Puppy Pet Spa in O’Fallon, Mo., the process could not have been much easier.

Cooke and Seithel, who learned how to groom dogs from the stylist, both had years of experience working in other grooming shops before deciding to go into business together.

“We were both working in other shops,” says Cooke.  “We wanted to take the good with us and get rid of the bad.”

Initially, Cooke and Seithel found financing to be their greatest challenge.  They applied with the U.S. Small Business Administration but could not meet the 20% down payment requirement. 

“We had to take loans out against our houses,” says Cooke.  “We set up the phone lines before we were actually opened.  And we advertised, so we had appointments set up three months in advance.”

Now in their fifth year of business, the partners have steadily grown their company.  “We started with just the two of us and now have 13 employees.  Each year we added staff and increased our numbers,” says Seithel.  “A lot of our growth has come through word-of-mouth, friends telling friends.”

With this business growth came increased demands from clients, and in April the women expanded their business model to include boarding, which meant moving to a new location in WingHaven.

With the expansion and move, Cooke and Seithel decided it was a good time to get a financial safety net in place. 

“First we thought about getting a loan, but we didn’t need the lump sum of money,” says Cooke.  “We realized that we just wanted the money as a backup after talking to our banker.”

The partners decided to work with New Frontier Bank, which is in the same lot as their pet spa, because they already had a relationship established with the bankers there. 

“Our banker, Shelley Shannon, actually brings her dogs to us,” says Seithel.  “When we started talking about it, it was a light conversation.  She told us they would need six months’ worth of bank statements and appraisals of our home as collateral and a business plan.”

“They knew we were expanding, and we talked about a loan versus a line of credit,” says Cooke.  “It only took 30 days, and it took the stress off the business.  We haven’t needed it yet.  It’s like a security blanket.”

Cooke and Seithel’s story is an example of something most bankers agree is true:  If you establish a relationship with your bankers before you need something and make sure they understand your business, they will be more likely to be able to help you in the future.

For some business owners, it takes longer to find the right bank.  But Cooke and Seithel found their right match right away.

“We didn’t check around,” says Cooke.  “We felt comfortable with them.  We decided to go with them since we were approved.  It wasn’t a big ordeal.”

The partners say the success they have had over the past five years helped them avoid any hurdles when obtaining their line of credit. 

“We didn’t go in to get it because it was a need, and we expected to stay profitable,” says Cooke. 

Their greatest challenges turned out to be making sure they had the correct documents from the city of O’Fallon and having their homes appraised.

Despite the current economic slowdown, Cooke and Seithel have not seen a dip in business. 

“I have noticed that if people were coming once a month, they are now coming once every six to seven weeks,” says Cooke.  “Or if a client had a teeth brush and nail clipping on their ticket, now they are just getting the teeth brush.  We don’t have anything to compare it to though.  Our volume is the same.  Customers are just getting their tickets down.”

The women attribute their continued success to knowing how to meet customers’ needs and having passion for their work.

“People want good ol’ customer service,” says Cooke.  “People want quality service, respect, knowledge and someone who is willing to go an extra mile.  And we’re animal lovers.  We are looking out for the health and life of our clients’ pets.”

Even with a growing number of employees, Cooke and Seithel still work as hard as ever.

“There have been businesses closing around us,” says Cooke.  “Our employees mean a lot, and we wouldn’t be successful if we just collected the books and left.”