Salon Financing Options
It can be difficult to know how to make your business succeed when everyone is making cuts and consumers are spending less and less money. As a beauty business such as a salon or hairdressers, you may have found it difficult to keep your profits up! People may be cutting back, a difficult thing to deal with for any business. For small businesses, this can have a dramatic effect on the success and growth potential of the company.
You may have a business plan for your salon, this could include:
• Refurbishing or redecorating
• Buying in new products to help your salon stay close to trend
• Training and developing staff to keep them up to date and qualified
• Hiring new staff (you may have had to let some go through the recession)
• Advertising the salon
• Marketing campaigns, like setting up a monthly newsletter
• Negotiating bulk stock orders to get better value for money and more products in
The above are all worthwhile business ventures and goals, but difficult to achieve without available salon financing options.
Traditional business finance can have high interest rates, it can also be strict in the repayment terms. However, more and more banks are announcing they plan to plunge more money into small business loans – so you might be lucky!
You might also consider a merchant cash advance. This is an unsecured form of business finance and an alternative to the business loan.
With this borrowing method you can repay flexibly with a pre negotiated fixed percentage of each credit and debit card transaction made in your business.
This merchant cash advance is settled when the full amount has been paid in total through this payment type. Many salons therefore choose this method as it can seem more flexible.
Some hairdressers and beauty salons across the UK also use this business cash advance or business loan opportunity to open the salon at a second location to expand the brand. Business growth is vital in these difficult economic times, so growing and expanding is advantageous.
Depending on your specific salon business plans, you may want £150,000 or just £5,000. Each salon, and application, is unique and treated as such by the lender who will want to also look at your plans for what you wish to do with the money. Your credit history can sometimes play a role, but not always so don’t be afraid to apply for loans for salons whatever your situation.