If there’s one business where you need to provide an environment as beautiful as the hair, skincare, or styling you provide your customers its when you own a salon. Almost no customer will go to a salon that doesn’t have the ambiance or pleasing aesthetics they need. Every customer wants to relax and enjoy their surroundings while you provide the beauty and hair care services they want.

Does your salon provide a place of comfort and beauty? If it doesn’t, do you need new salon equipment to help your salon get back on track to growth and development? Is money the one thing holding you back from getting your salon to where it could be?

If the answers to the questions above, lets you know you need access to financing, there are solutions available to you. In the beauty salon business your equipment, surrounding, profit, and growth are all tried together. Because they all keep your current customers happy and help attract new customers to your business.

Keep reading to find out how you can give your salon an upgrade that will help you re-energize, grow, and develop your business.

Salon Equipment Financing

Equipment financing for a salon is when you purchase the equipment through an installation plan. This allows your salon business to get the operating equipment it needs while improving its overall marketability. Equipment financing allows you to continue to bring in the revenue you need with steady cash flow while you grow and develop your business.

It’s even better when you’re able to upgrade your salon equipment with financing that gives you the best in rates and terms. Most of the time, finding a finance company that can do that for you takes a bit of time and effort. The list below shows you a couple of various financing options you can consider.

Three Finance Options for Small Businesses and Salons

If your goal is to buy salon equipment through financing, there are various ways a finance company can provide you with a loan. A few of the ways to handle your ongoing working capital financing needs should be weighed carefully.

1. Invoice financing allows you to get paid for your salon services through client invoices that haven’t been paid yet. This is called invoice factoring, and it’s when you sell off invoices to a third party to generate immediate revenue. This type of financing does not apply to most salons. There is time a salon may have some large invoices for a group of customers with multiple services, and then invoice factoring can be used.
2. Merchant Cash Advance is when you access financing through a cash advance based on your expected and projected credit card sales in the near future. Lenders look at your current cash flow through your day to day credit card sales and can approve you for a lump sum. You’ll pay back the lump sum at a percentage rate they propose if you agree.
3. Business Line of Credit allows you to use the salon’s assets you already have as collateral. Then you apply for a line of credit and use the credit loan money for what you need to purchase.

Many times salon equipment is purchased under a merchant cash advance if a salon is preparing for future expenses. Most businesses will only take out the money they need to purchase what’s necessary. These loans have better rates than short term loans.

Terms of Salon Equipment Financing

No matter how good of financing you get for your salon equipment, you have to be able to pass an initial application screen by the finance company. Many finance companies let you know upfront what they want from you in terms of your credit ratings, a business plan, length of time the salon has been open, etc. Some of those terms are as follows:

• At least in business six months
• Must have $10,000 of monthly revenue
• Your FICO or credit rating must be at least 500
• You must submit a completed application with four months of business bank statements attached

How Do You Provide Estimates or Projections of a Salon’s Working Capital?

If your goal is to purchase what you need through equipment financing, you have to give most finance companies proof of your monthly revenue now and what’s projected in the near future. Your salon’s day to day working capital amounts to your business assets. You need to subtract your liabilities from the assets to get your salon’s worth and value.

Your business assets are what keeps you operational, and determining the working capital you still need for equipment helps you grow and develop your salon. Your salon should always maintain a balance sheet that gives you the specifics of how financially sound your salon is. When you review the balance sheet you will also be able to discern how much more you need to invest in new salon equipment or grow your business.

The more accurate your balance sheet, the more realistic your working capital needs will be. Your day to day cash flow and liabilities determine the strength or weakness of your salon, and that’s what’s used by the finance company to determine your equipment finance options.

Apply for Salon Equipment Financing

If you’ve decided that your salon needs to be upgraded with new salon equipment, you don’t want to hesitate to move forward. By using older equipment in a salon that is supposed to provide a classy ambiance, you may be doing your business a disservice. The information above about lets you know how affordable salon equipment financing is.

You have nothing to lose but a stronger and bolder business. There are so many opportunities in salons today because social media influencers are always on target with their look, clothing, hair, and makeup. People expect professional services that make them look good, and in return they help expose salons to others who want to look as good as them.

In the current market, there’s no place to go but up for salon businesses that fit the part. When you’re ready to turn your salon into a unique and growing venture, leverage your skill, knowledge, and business on getting new salon equipment. Click on the button below this article to get pre-approved and to find out how buying salon equipment opens your business world to positive future possibilities. Take the first step by contacting us and we’ll work with you on making your possibilities into reality.