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Your Guide to Beauty Salon Financing
Being a business owner in the beauty and wellness industry requires a passion for what you do and your customers. It also often comes with high costs – from top-of-the-line beauty products, curating a beautiful salon space, and hiring a dedicated staff. Additionally, beauty and wellness can be the first item to go in a customer’s budget during times of economic uncertainty, which can put salon owners in an unfavorable position. The good news is there’s still ample opportunity for beauty salon entrepreneurs to find success. A small business loan provides a financing solution for small business owners who need extra funds to cover expenses, bridge cash flow gaps, or expand the business. SmallBusinessLoans.com partners with experienced lenders who know the ins and outs of the beauty salon industry and offer fast and flexible loans for business owners.
On this page, we’ll discuss how a beauty salon business loan can help you achieve your goals, the different loan types available, how to qualify, and much more. Continue reading to discover how SmallBusinessLoans.com can help you.
What are the different types of beauty salon loans?
For any beauty salon business owner in need of financing, finding the right type of loan is an important step. There are many loan types available to suit almost every kind of business need, but determining the right loan type for your needs is much easier than you’d think. Our trusted lending partners are experienced in the beauty salon industry and can customize a loan to meet your business challenges. Here’s an example of common loan types our partners offer:
- Short-term business loans: If you need a temporary financing solution or have payment deadlines coming up, short-term loans help address those time-sensitive obligations and manage short-term business expenses.
- Working capital loans: If your business is lacking working capital to manage operational expenses needed to run the business, then a working capital loan may be right for you. This works best for businesses with inconsistent cash flow, seasonal lulls, or other disruptions caused by growth.
- Business bridge loan: If your salon is moving locations, or needs to make a large inventory order, business bridge loans help businesses “bridge” the gap in expenses temporarily. Business bridge loans are best suited to cover payments in the immediate future.
Financial obstacles faced by beauty salon business owners
Beauty salons face many challenges, from inconsistent client bookings to expensive operational costs and high rent. Through it all you have to factor in advertising expenses to attract new clients, manage or hire staff, and stay on top of beauty trends. Financial challenges don’t have to grind your business to a halt – if you understand how these challenges shape your business growth, and can proactively find solutions, you can increase the profitability and success of your business. Here are some examples of common obstacles that your business may face:
- Cash flow management: Inconsistent revenue flow, lulls in demand, or unexpected expenses can make managing cash flow for your salon a challenge.
- Equipment upgrades: Salon chairs, shampoo bowls, massage tables, or other high-end equipment come with a high price tag. Keep your clients relaxed and satisfied with top equipment.
- Hiring and retaining qualified staff: Attract expert estheticians and beauticians by creating a top-notch company culture and investing in your staff.
- Marketing and advertising expenses: To attract new clients, you need to invest in marketing and advertising expenses in your community.
- Rising costs of insurance: Maintaining policies for your business and employees can be expensive.
What can beauty business loans be used for?
Business loans can be used for many business expenses and can be a smart decision to help you achieve your goals. With additional capital, you can make improvements or upgrades to the salon, hire additional staff, invest in marketing, and more. If you know your business could use extra funds but aren’t sure what areas need more funds, here’s an idea of how our customers use their small business loans:
- Purchase new spa equipment, salon chairs, or products in bulk
- Increase your advertising efforts to attract new clients
- Expand your team and hire new employees
- Invest in professional development and training for staff
- Expand your service offerings
- Cover unexpected expenses or emergencies
- Acquire a competing business
- Renovate or relocate your salon space
How do I know if my beauty and wellness business needs financing?
As a business owner, you have a lot on your plate, including managing the day-to-day financing of your business. But it can still be a challenge to know when the timing is right to seek out a financing solution. If you find yourself struggling to manage your budget, dealing with unforeseen costs, or are experiencing growing pains and can’t bridge expansion costs, it may be time to consider a business loan. Here are some indicators that it may be time to consider a financing solution:
- Difficulty managing the operational costs of your business
- Insufficient budget to promote your dental business and attract new clients
- Challenges expanding your service offerings or investing in more training for your staff
- Wanting to expand your business but not having the cash on hand to grow effectively
If your business is experiencing one or more of these challenges, it may be time to consider a financing solution. One of our trusted partners can support you in finding the best loan type for your business needs.
How do I qualify for a small business loan?
It’s easy to qualify for a small business loan for beauty salon owners. It’s simple and straightforward to apply with our network of lenders. With flexible terms and qualifications that are easy to understand, you’ll be on your way to submitting your application in no time. If your business meets these criteria, it may be eligible for a small business loan with one of our lender partners:
- At least six months in business
- Minimum $250,000 in annual gross sales ($21,000/month)
- Fair to excellent credit
How do I get a loan for my beauty salon business?
As a business owner, we know you’re short on time. Which is why SmallBusinessLoans.com has done the research to source top-rated lenders who specialize in the beauty and wellness industry. Once you’ve determined the loan type that suits your needs and get matched with one of our preferred lenders, all you’ll have to do is follow these five easy steps to get started:
- First, you’ll determine the loan you can afford and check if you meet the lender’s minimum qualifications. Most alternative lenders we partner with require a business to be in operation for six months and a minimum of $250,000 in annual gross sales.
- After that, you’ll fill out an application and provide the necessary materials. This typically includes bank statements and both personal and business credit scores.
- The lender will review your application, credit history, and other qualifications. At SmallBusinessLoans.com, we’ll pair you with a lender who quickly reviews applications.
- The lender will then determine the loan amount, interest rate, and repayment terms. If you accept the loan terms, the funds will be transferred to your business.
- Finally, you’ll repay the loan according to the agreement’s terms.
Why work with SmallBusinessLoans.com?
We believe the traditional lending industry needed to be reinvented, which is why SmallBusinessLoans.com makes it easy for business owners to quickly find trusted lenders. We cut through the noise by providing you with top-rated lenders to choose from. Our partners offer simple applications, streamlined processes, and quick deposits so business owners can get the funds they need as quickly as possible.
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Frequently Asked Questions
A loan for a beauty salon provides access to funds to cover most business expenses and help an entrepreneur meet its business goals. With an alternative lender, loans are often flexible, fast, and efficient compared to traditional lenders.
SBA loans can be used for your beauty salon’s expenses. However, SBA loans typically require long-lead times and many qualifications, making it difficult to receive funds in a timely manner. If your business needs immediate funds, or can’t meet all the qualifications, consider applying with an alternative lender like one of our partners at SmallBusinessLoans.com.
SmallBusinessLoans.com partners can provide funds within 24 hours1 of approval. A loan can be approved within one business day, depending on the loan type and the documents needed. However, traditional lenders and SBA loans typically take several weeks, if not months, to get approval and receive funds.