Your salon, barber, or spa caters to your clients, making them look good and feel happy. But to keep it up, whether to buy more equipment, expand your storefront, or hire more staff you may need more funding.
Fortunately, business financing for the cosmetology industry isn’t hard to get. You don’t need perfect credit and you only have to be in business for a few months. Here’s everything you must know to get business financing for your salon or spa.
What Credit Score Do You Need?
Credit scores are often the first thing business owners worry about and for good reason. Many business loans require perfect credit, but business loans for salons and spas don’t require perfect credit. It’s not the main focus of the loan.
This doesn’t mean you shouldn’t try to have good business credit, but we can work around it, especially if your personal credit score is at least average.
How Much Income Must You Have?
Income is a key factor when qualifying for business financing for the cosmetology industry. Income or deposits in your business bank account show that you are succeeding in business and the loan is to help you either maintain that business or grow further.
To qualify for salon or spa financing, you must be depositing at least $10,000 per month in your business bank account. Notice we said business bank account and not personal – don’t mix business and personal income or it makes it hard to qualify for financing.
How Long Must You Be in Business?
Most business loans from banks require you to be in business for quite a while before they will lend you money. Fortunately, business financing for the cosmetology industry only requires you to be in business for 3 months.
While startups may need other types of financing, after just 3 months of being in business and proof that you deposit at least $10,000 a month, you can get financing for your salon or spa!
Reasons to Use Salon or Spa Business Loan
Every business has a different need for financing, but here are some common reasons salon and spa owners use business financing:
- Expand their business
- Buy new equipment
- Pay for broken equipment
- Emergency repairs
- Buy more products for your shelves
- Implement stronger marketing techniques
- Refinancing high interest debt
Business financing for the cosmetology industry is easier to get than most people realize. As long as your business is somewhat established, you have ‘decent’ credit, and you prove your business brings in at least $10,000 a month deposited in your business account you’re well on your way to solving your business’s financial needs.
Of course, business financing for salons and spas comes in many shapes and forms as each business has different qualifying factors and needs.
If you’re a salon or business owner and need financing for your business, contact United Business Funding. We work with salon and spa owners of all sizes and can help in just about any circumstances. Call us today at 888-351-3863 to see how we can help.