The beauty salons and spa industry is currently flourishing and has grown 2.7 annually. According to the Zion Market Research, beauty salons and spas market will reach $190.81 billion globally by the end of 2024. Recently due to the heavy competition between beauty salons and spa business, maintaining a positive cash flow is almost impossible. Beauty salons and spas are held to a high standard as compared to other brick-and-mortar businesses. These businesses require more constant stream of working capital to keep their operations running effectively.
Getting funding to manage this working capital cycle can be difficult. Banks will require good credit, a detailed business plan, or a couple of years of financial documents, and last but not least, collateral. If you don’t have any of that, you are not eligible for traditional funding.
Alternative lenders have made the problem solved by providing business loans for beauty salons and spas. Funding from alternative lenders is flexible and quick. Whatever your business’ objective is, you can get funding as quickly as possible with alternative lenders.
When to Apply For a Business Loans for Beauty Salons?
Here are some of the instances when you need to apply for a business loan for beauty salon and spa;
- Buy a new salon station
- Buy Dryers
- Install Pedicure Chairs
- Manicure station
- Nail Polish Racks
- Sanitation Stations
- Equipment Sanitizers
How A Business Loan Can Work for Your Beauty Salon?
- You can pay your beauty products supplier.
- Buy some expensive beauty products.
- For renovations and expansion of your salon.
- Purchase salon equipment.
- Strengthen your cash flow
Alternative Business Loan for Beauty Salon & Spas
- SBA Loans
SBA loans can be a great fit for your spa and salon business. These loans carry intense qualification criteria as well as long-drawn-out lending process, which can take weeks or even months. However if approved for one, their longer terms and affordable rates can be a plus for you. But for that you should have an excellent credit score, and also need to provide substantial collateral for acquiring SBA loans.
- Small Business Loans
Small business loan is a funding program that can help you to fund the growth of your spa and salon business. Whether you are looking to add a couple of seats in your salon or want to add new services that require more equipment and workforce, a small business loan can help you.
- Equipment Financing
As the name refers, equipment financing is a funding program that can help you purchase the required equipment. Running a salon and spa business involves lots of equipment, and equipment loans can best serve you in purchasing new spa and salon equipment.
- Working Capital Loans
Best alternative funding program for strengthening the cash flow of your salon and spa business. This program is specially intended to fund and manage the cash flow of business. Working capital loans are short-term in nature and can be a best fit to cover cash flow problems.
- Merchant Cash Advance
As everyone knows that it is not a loan, merchant cash advance can be a great funding alternative for spa and salon businesses. Your salon business can borrow a specific amount of cash against your future credit/debit card sales. The repayment process of merchant cash advance is quite easy. The cash advance lender can deduct a small percentage from card sales. It can be daily or weekly.
- Business Lines of Credit
Business lines of credit are another alternative to business loans for spas and salons. Lines of credit are similar to credit cards. However these lines come with lower APRs and higher credit limits and carries somewhat different repayment method. During the slow season, a business line of credit can be really helpful for salon and spa businesses to cover up their operational expenses.
If you have any question or concern, please call us on our toll free number (833) 827-4412. Alternatively, get your free quote online by filling online application form, if you’re ready to apply for salon and spa loan.