A Cutting Edge Guide to Financing a Beauty Salon
If you’re into hair design and want to start a business, creating a chain of beauty salons may be for you. Such a project, however, can be costly. That’s where loans come in. Here’s some quick information about funding your salon, including some of the most common financing choices.
Beauty Salon Costs
Knowing how much you need from a loan is the first step toward picking one that’s right for you. You’ll need to factor in the cost of rent, employee salaries, and heavy equipment (such as shampoo stations, cutting chairs, and infrared hair color processing lights), as well as inventory. Calculate the total figure of everything you’ll require to move forward.
Beauty Salon Financing Risks
Recognize that beauty salons are considered high-risk businesses. It can take years before you’ve built a stable customer base that assures consistent income. Because of this, traditional banks are reluctant to provide you with financing. Larger lenders have the luxury of avoiding clients that might not be able to pay off their loans. This eventuality is bad for entrepreneurs, too, as it can lead to bankruptcies and negative credit scores. Make certain you can pay for whatever loan you take.
Beauty Salon Financing Options
There are several funding avenues you should consider. One is financing that comes directly from vendors. Get in touch directly with manufacturers and find out if they offer loans for their products. Research companies and read reviews to determine if their offers fit your needs.
Another option is to lease equipment. Although you’ll spend more in the long-term than buying, you will have more cash flow than would otherwise be the case. These dollars can be applied however you see fit to grow your business.
Strongly consider applying for an unsecured business cash advance. This financial instrument is based on future credit card transactions so your past sales history is not a concern. The company providing the money buys your credit card sales in bulk for less than they’re worth, then gives you a lump sum to do with as you wish. The approval process is generally fast. Expect money to appear in your account within a week of being approved.
Because of their speculative nature, financing beauty salons is more difficult than for many other commercial enterprises. Getting the money you need to start, though, is still possible. It’s well worth investigating how to finance opening a salon so that your fantasy of owning one can come true.