Financing Options for Salons and Spas
The health and wellness industry is a multi-billion dollar industry that produces a myriad of self-care services to those seeking rest, relaxation, and rejuvenation. Visiting a salon or spa is meant to be a luxurious yet accessible experience that provides opportunities to care for oneself from head to toe. When it comes to creating and maintaining salons or spas, though, people often do not consider the financing and loan options that owners must consider before moving forward.
Not technically a loan, cash advances come in the form of same-day cash payments given to salon and spa owners. If an owner is not looking for a traditional loan, they may use this option. With this type of financing, the lender purchases “future payments” made to the business (ie. customer purchases, salon, or spa deposits) and allows the business to pay them back daily through services and goods sold.
One of the first stops business owners may make in the financing process is a bank. Bank loans offer low terms and low rates. They also provide health lending opportunities, which may be why spa owners flock to banks first. If a bank loan doesn’t work out in the owner’s favor, they have many other options to which they can turn.
With an alternative loan, a small business owner has the chance to catch up on rent payments, fund an advertising campaign, fulfill payroll needs, or utilize the resources for most other capital purposes and uses. Getting an alternative loan is one of the faster options, often providing same-day pre-approval. This type of loan also allows business owners to receive their funds as soon as possible, potentially within the week.
If the owner of a smaller salon or spa finds it difficult to acquire a conventional loan or any form of financial assistance from a bank or other source, a Small Business Administration (SBA) loan may be the right move. This loan is popular due to its accessibility to businesses with good credit and history. These kinds of loans also offer owners a chance to purchase or borrow new equipment for their salon or spa, refinance their real estate, and more.
Making the right financing decision for a salon or spa does not have to be as complicated as it sounds. With many types of cash advance or loan opportunities available, small business owners can get their funding and stay on track to provide health, wellness, and relaxation services to satisfied clients.