Are you a proud owner of a busy beauty salon? Or are you an aspiring business owner looking to open your first branch? Whether you’ve been in the business for years or you just recently started, you’re going to need additional funding. Whether you want to expand your store or add working capital, Nashville business loans can help you fund your business.
Here are five ways your salon can benefit from small business loans.
1. Add New Products or Services
You can use a small business loan to expand your service and/or product line and increase your revenue. Some of the additional services you can provide are hydrotherapy facials, laser hair removal, microblading, lash lift, acrylic nails, and more. If your clients love the services and products you offer, their sense of loyalty to you and your salon will increase.
2. Purchase Equipment
To compete with other salons in your area, you will need to update or replace outdated equipment. If your business is booming, you may also need to purchase more stations and equipment to accommodate the additional customers. However, beauty salon equipment comes at a price. With a small business loan, you will not have to break the bank to purchase equipment for your business.
3. Working Capital
Additional working capital is one of the main reasons why business owners apply for a loan. Without it, you won’t have money to pay for daily business expenses, suppliers, bills, and more. Your business’ working capital is a reflection of your company’s overall financial health.
4. Business Expansion
If your customer base is growing, it’s time to consider an expansion. However, expanding your business means additional expenses. Most entrepreneurs cannot afford to fund an expansion out of pocket. Fortunately, whether you want to branch out, purchase commercial real estate, or renovate your current shop, small business loans can help. By securing a loan, you can break large expenses into smaller, affordable monthly payments.
5. Refinance Debt
Another popular way to use a small business loan is to refinance current high-interest debt. Debt refinancing is the process of using the funds from a new, low-interest loan to pay off existing debt. While it may seem unreasonable, taking on another loan to eliminate a more expensive debt is beneficial for your company’s financial health.
When paying off a costly loan – whether it’s a business credit card, bridge loan, a merchant cash advance, or other costly debt with another loan, be sure the new loan offers better terms. Specifically, you want lower interest rates, longer repayment terms, and a larger lump sum of money.
Nashville Business Loans – Small Business Loans for You
Taking out Nashville business loans to help finance your salon business is definitely a wise decision. If you have any questions about small business loans or about business in general, SMB Compass’ lending experts are here to help you.