Beauty Salons & Spas (2024)

5 Star Rating on Google

2015 and 2017 Honors

BBB Accredited Business

It's in! Wanted to thank you again for helping us out with BOTH PPP loans! They were a life saver and we all really appreciate it! You guys have been very easy and painless to deal with. All the online docs are easy to fill out and how it should be.

Kevlar

Beauty Salon Business Loans are business loans geared towards the cash flow cycles and periodic expenses of beauty salons. In addition to covering short-term needs and larger purchases, these business loans can bridge temporary revenue gaps until demand picks back up.

Beauty Salon Business Loans can come in the form of:

Each of the products listed above can suit a different type of expense or cash flow issue. For example, beauty salons are especially prone to temporary, occasional dips in revenue. Demand can rise and fall at any moment. This situation is best suited for a Working Capital Loan or Business Line of Credit. Borrowing amounts for Working Capital Loans are directly based on your operational expenses. Thus, if you’re looking to get through a rough patch lasting a few months or so, a Working Capital Loan can allow you to continue serving your customers as usual.

On the other hand, a Business Line of Credit is more cost-effective if you’re looking to cover operational expenses for a much shorter period or secure a moderately-priced one-time expense. Popular examples of such costs include extra supplies,inventory, or new equipment. You’ll pay less interest onaline of creditif you pay off the full balance as quickly as possible.

For more substantial investments like new equipment, you might instead consider a Business Term Loan, SBA Loan, or Equipment Financing. These products carry higher borrowing amounts and longer terms, which are ideal for launching new services orpurchasing new lines of products to sell.

If you’re looking to start small with either strategy, we can customize your borrowing amount and terms to ensure you don’t take on more debt than you can afford to pay back.

Beauty Salon Business Loans allow beauty salons to grow and stay competitive despite their rocky cash flow and sizable periodic expenses. After all,increasing revenueis one of the most logical ways to balance out cash flow issues.

Research has shown that up-selling current customers makes more financial sensethan trying to gain new customers. Beauty salons can accomplish this by selling relevant products to customers who have just received their usual services. Business loans can give salons the funding to purchase inventory consistently while demand fluctuates, and other expenses arise.

Another option is offering new services, which will either require additional employees or additional certifications for existing employees. Rocky cash flow can also make it challenging to keep a sufficient amount of employees on staff throughout the year. But if you don’t have the staff to take appointments from new customers, they will give their business to the many other salons in the area. Business loans can ensure that you always have enough staff to make appointments, even when demand drops for a temporary period.

Lastly, it’s important to note that borrowers can access most of the six business loan products mentioned above with subpar credit. Women typically own beauty salons.The average woman’s credit score is approximately 25 points lowerthan the average man. Beauty Salon Business Loans can helpfemale business ownerspay off existing debts or get current on other payments to raise their credit score.

Taking on additional debt is always a risk for businesses that are naturally prone to cash flow issues. Choosing the wrong repayment structure or borrowing the wrong amount could do more harm to your cash flow than good. These decisions are even more difficult inindustries with unpredictable demand. How can you possibly know when it’s the right time to apply?

Major expenses also tend to create other costs. For example, let’s say you’ve just used a business loan to purchase new equipment andoffernew services. But what if none of your employees have experience with these services or are not certified to provide them? What if you don’t have enough employees to handle the increase in responsibilities (i.e., confirming online appointments, selling products, providing new services)?

And even if you hire more employees, you must make sure they receive sufficient training andpossess the right personality for the job. Using a business loan for hiring can cause you to speed up the interviewing and training processes. This is why many businesses end up borrowing too little. They forget that new hires don’t always contribute to revenue right away, and finding the right personality for the job can take a lot longer than expected.

The amount of paperwork required for the application depends on your chosen product. For most products,fundscan be approved and distributed in up to three business days. Here’s how to apply:

Step 1:Choose the Right Product

The first step is choosing the most sensible solution to the problem at hand. This should require a decent amount of research, as each product is designed for different types of expenses and cash flow cycles. Are you looking to cover a short-term or long-term cost? Is demand expected to increase or decrease in the coming months?

Considering the funds’ purpose will also help us determine the correct borrowing and terms for your needs.

Step 2:Gather Your Documents

Here are the documents and information required for the seven products mentioned above:

• Driver’s license
• Voided business check
• Bank statements from the past three months
• Invoice for equipment (for Equipment Financing)
• Credit card processing statements from the past three months (for Merchant Cash Advance)

SBA Loans require additional documentsand information. To learn what’s needed for the SBA Loan application, visit ourSBA Loan page.

Step 3:Fill Out Application

You can begin the application process by calling us or filling out our one-page online application. Either way, you’ll be asked to enter the information from the previous section along with your desired funding amount.

Step 4:Speak to a Representative

Once you apply, a representative will reach out to you to explain the repayment structure, rates, and terms of your available options. This way, you won’t have to worry about any surprises or hidden fees during repayment.

Step 5:Receive Approval

If and when you’re approved, funds for Business Term Loans, Business Lines of Credit, Working Capital Loans, Equipment Financing, Merchant Cash Advance, and Revenue-Based Business Loans should then appear in your bank account in anywhere from 1-2 business days. For SBA Loans, it usually takes 3-5 weeks to receive funding.

Your Business Financing Gets Set Up – Now What?

Your business loan isn’t just away to get financingfor your business. It’s also an excellent opportunity tostart building (or improving) your credit.

Regardless of the type of business loan you get, make all of your required payments on time and in full. If you get a business credit line or another form ofrevolving credit, keep your balance below the credit limit.

Consistently making your business financing payments on time and in full will positively impact your credit. And that means preferred rates and terms when you next need business financing.

If your application is declined, it might be because you applied for the wrong product for your cash flow. In this case, we would likely recommend a different product with a less hazardous repayment structure.

We might also decline your application after determining that you cannot afford to take on more debt at this time. Instead, your needs and financial circ*mstances might be better suited for another financing tool,like a business credit cardor even apersonal loan. Both options can be accessed through UCS and are usually much easier to qualify for than business loans.

If yourcredit score is your main obstacle for access to financing, you should consider ourcredit repair services. We can help you identify the issues that are keeping your score down and develop practical solutions for eliminating them.

It's in! Wanted to thank you again for helping us out with BOTH PPP loans! They were a life saver and we all really appreciate it! You guys have been very easy and painless to deal with. All the online docs are easy to fill out and how it should be.

Kevlar