Grow Your Salon in Style with Beauty Salon Loans
Keep your customers looking their best by providing high-quality salon services. Beauty salon loans give you the resources you need to scale your operations and move your business forward.
1West understands the challenges of running a salon. Our team of financial experts is committed to making working capital easily accessible to beauty salon owners.
Ways You Can Use Beauty Salon Loans
Here are some of the ways you can use the funds from a salon business loan:
1. Open a New Location
When your business is ready for expansion, you’ll need a significant amount of money to open a new location. Applying for a loan can help you cover the costs of leasing or buying a new space, equipment, staff, and other expenses associated with growth and expansion.
2. Hire More Staff Members
An understaffed salon can greatly impact your business’s bottom line. Without enough staff members to service your customers, you’re missing out on growth opportunities. Your existing stylists may also be overburdened with customers, affecting the quality of service you provide. Beauty salon financing can help you cover the costs of hiring and training new staff members.
Because you don’t just want a small business loan – you want the absolute best loan for your business, right?
3. Purchase Salon Equipment
You can’t run a salon without proper equipment. You’ll need to purchase hairdryers, reception desks, shampoo bowls, display cases, professional hair cutting shears, towels, mirrors, and hairstyling and grooming equipment, just to name a few. However, it can be overwhelming to purchase these items out of pocket.
Aside from typical hair salon equipment, salons today need health and safety equipment to operate, like face shields, masks, gloves, air purifiers, and other safety measures. Beauty salon loans can help you pay for the equipment you need to keep your business going.
Once you’re approved, you’ll be able to access your capital in as little as 24 hours.
4. Acquire Another Established Salon
You don’t necessarily have to start a new salon business from scratch. Many small business owners choose to purchase an established business and building from there. The problem is that buying an existing salon can be expensive, especially if your planning to acquire an established company. When you come across a good business opportunity, you can apply for salon business loans to fund these purchases for you.
5. Market Your Business
Small businesses often forgo paying for marketing expenses, thinking it’s a waste of working capital. Even though there’s plenty of growth opportunities in the salon industry, the competition is stiff. To survive in a cutthroat industry, effective marketing is the key component for long-term success.
Establish your competitive advantage by using the money to implement marketing strategies. The extra funds allow you to advance your business without taking away cash flow from other parts of your business.
Whatever You Need, There’s a Loan for You
As a trucking business owner, you know that securing additional financing to fund daily and major purchases isn’t a walk in the park. Traditional lenders like banks and credit unions are hesitant to lend Beauty salons have a plethora of options when it comes to small business financing. Here are some of the top loan choices for you:
Business Lines of Credit
A business line of credit is one of the most flexible financing options for small businesses. Once approved, lenders give you a predetermined credit limit to use as needed, given that you don’t go over your limit. Unlike a classic term loan, you don’t have to repay the entire credit limit given to you. Instead, you only need to repay the amount you’ve withdrawn and the interest incurred.
A business line of credit is revolving, which means it works just like a credit card. Your credit limit goes back up once you’ve repaid the money you’ve withdrawn from your credit limit. This is very convenient for small business owners as you don’t have to go through another application every time you need additional capital.
You can use the funds from a business line of credit to establish a safety net for unforeseen expenses. You can also use
Unsecured Working Capital Loan
An unsecured working capital loan doesn’t require borrowers to provide collateral to secure capital, making it easier for small businesses to qualify for a loan. Lenders check your cash flow to determine the terms, rates, and loan amount. They also look at your industry, time in business, credit score, and revenue streams.
The terms for an unsecured working capital loan vary as well, but it typically ranges from two months to two years with rates as low as 18%.
The Small Business Administration (SBA) knows that there’s a gap in small business financing. So, to bridge this gap in cash flow, they created SBA loans. These are loan programs backed by the SBA, providing business owners with lower interest rates, longer repayment terms, and higher loan amounts than most loans in the market. You can use the loan to purchase a business, equipment, supplies, commercial real estate, or working capital.
While SBA loans are one of the best small business financing available today, you need to prove that you are a strong borrower. It’s also important to note that the underwriting process usually takes about a month, so SBA loans may not be the best option if you need fast cash.
The overall operational costs of beauty salons are tied to equipment. If you need to borrow money solely for equipment purchases, you can apply for equipment financing.
Equipment financing provides salon business owners the financial resources needed to purchase or lease much-needed equipment, like a point-of-sale system, stylist chairs, hairdryers, nail stations, professional hair cutting shears, and more. The equipment you’re planning to lease or buy serves as collateral for the loan, providing security to the lender in case of a default.
We help you through the whole process.Why Choose 1West
Quick Access to Working Capital
1West understands that financing for small businesses is hard to come by. It’s our goal to help you grow your salon business by giving you quick access to working capital. We partner with over 50 lenders in our marketplace to help you find the right loan for you, and once approved, you’ll get funded within as little as 24 hours.
Quick Access to Working Capital
We make it easy for you to get the money you need in no time. All you have to do is
- Create an account.
- Choose the best type of loan for your business. If you have a hard time choosing, you can use our product wizard to help you decide.
- Apply and compare. Once you’ve applied, you’ll receive different offers from more than 50 lenders. Our lending experts can guide you throughout the entire process to make sure you pick the best one.
At 1West, we highly value transparency. You always know where you stand; no hidden fees, no surprises.
Call us anytime (888) 881-WEST
Monday – Friday | 9am – 6pm
FAQS ( Frequently Asked Questions)
What Is the Minimum Credit Score Required to Get a Beauty Salon Loan?
When applying for beauty salon loans, you’ll likely need a credit score of around 550 to 680. This is because beauty salon loans can be considered as a personal or a business loan, which usually require credit scores that fall within these numbers.
However, there are cases when it is possible to get a beauty salon loan with a lower credit score. Bear in mind that these may come with higher interest rates. Additionally, if you have a good business plan and financial history, you may be able to convince a lender to give you a loan even if your credit score is below the range recommended above.
How To Apply For a Beauty Salon Loan?
Applying beauty salon loans is pretty much the same as applying to any other types of personal or business loans. And while there are variations depending on the lender, the steps you need to take are pretty much the same:
- Gather all of the required documentation. These include financial statements, tax returns, and other information about your salon. Lenders will use this information to assess the risks associated with the loan.
- Shop around for lenders that offer great loan terms. There are many lenders who offer beauty salon loans, so it is important to compare rates and terms before choosing one. It is also helpful to speak with other salon owners to see if they have any recommendations.
- Submit your application to your chosen lender. They will likely ask for additional information such as a business plan or personal guarantee. But once the application is approved, the funds will be disbursed and you can begin using them to grow your salon business.
How Much Does It Cost to Finance a Beauty Salon?
This will depend on a number of factors. First is the size of the loan needed. Beauty salon loans can range from small personal loans to larger business loans. The type of loan you choose will affect the interest rate and terms of the loan.
Second is the type of beauty salon you want to finance. A start-up beauty salon will likely have different financing needs than an established salon.
Third is your credit score. A good credit score will give you access to better loan terms and rates.