Grow Your Salon with These Financing Options

Grow Your Salon with These Financing Options

Beauty salons require tools, products, and a wide array of other necessities to run optimally. As a result, salon owners who may not have funding readily available to keep up with the day-to-day needs of their business may benefit from finding finance options to buy the tools and products that they need to run their business.  The process and requirements will vary by lender and funding source. However, salon owners do have viable options when it comes to funding.

Salon Owners Have Options…

Finding beauty salon financing isn’t impossible. In fact, salon owners will likely find that there is a wide variety of finding sources that they may be able to utilize. For example, working capital loans and SBA loans have been good sources of funding for many salon owners. Qualifying for these types of loans may be a bit more difficult. However, the terms are usually good and owners have the benefit of scheduled payments as well as the ability to acquire the tools and supplies they need. 

Short Term Loans

Conversely, if you don’t have good credit you may be able to meet your financial needs through short-term financing. Many short-term lenders will consider other areas instead of, or in addition to your credit score. 

Merchant Cash Advances 

Other financing options include merchant cash advances or MCAs which allow salon owners to meet their financial needs by funding based on credit card sales that can be repaid daily or weekly from your sales transactions. Although an MCA isn’t technically a loan, it can be used to meet your funding needs. 

Credit Cards and a Business Line of Credit

Business credit cards make it possible to buy supplies, and meet other needs when your cash flow may be low. Salon owners can also receive financing through a line of credit. A line of credit allows owners to utilize a set amount of funding/financing, and continue to borrow up to the approved amount at any time. Once repaid, it can be borrowed again. Salon owners have many options when it comes to securing financing for their business. Many of the options can be used, beneficially, to meet the unique needs of their business.