Salon Financing Tools – Business Loans, Advances and Equipment Financing
We offer several different salon financing tools that can be deployed to help with growing a salon or spa more quickly. Merchant cash advances and business cash advances provide a lump sum cash flow infusion, while a salon line of credit offers purchasing power with working capital waiting and ready for when its needed.
Merchant Cash Advance Salon Financing
Merchant cash advances are a popular salon financing tool for many reasons. They are well-suited for use in the beauty industry since they are based on the average monthly card transactions for the salon or even for independent beauty professionals who process their own customer payments (such as booth renters and salon suite franchise owners).
Business Cash Advance Salon Financing
Like merchant cash advances, business cash advances provide a lump sum of working capital which salon owners and independent beauty pros can use to grow more quickly or address temporary cash flow challenges. They are calculated based on the total average monthly sales rather than only credit and debit card transactions.
Both types of salon cash advance financing are repaid automatically, with repayment typically occurring over 6-18 months. Merchant cash advances are repaid as a small percentage of credit and debit card transactions by the card processor. Business cash advances are repaid through daily (or sometimes weekly) small ACH debits.
Salon Line of Credit
Establishing a business line of credit gives salon owners purchasing power that can be deployed when they need it. The main benefit of this type of salon financing is that fees are only incurred if a salon owner draws against the line, so that if a salon needs less working capital than the total amount available, financing fees are only assessed on the amount drawn against the line. Like business cash advance financing, repayment occurs automatically through daily or weekly ACH debits, and are usually repaid over the course of 6-12 months from the time funds are drawn against the line of credit.
Salon Equipment Financing
Any of the programs above can be used to finance salon equipment and furnishings. We also partner with equipment lease financing specialists that offer programs specifically designed to fund equipment and salon furniture. When you request a quote for financing, we can help you decide which of these tools might be most appropriate for your salon.