For small business owners, expanding your beauty salon business can be financially impossible. While the beauty industry is one of the most profitable industries today, expanding it is expensive and a majority of entrepreneurs cannot afford to pay the up-front costs to do that. The good news is that you don’t have to!
Denver business loans can help fund your beauty salon business from start to finish. Here are five small business loans for salons.
1. Business Line of Credit
A business line of credit works just like a credit card where you can access the funds as needed. Once approved, lenders give you a predetermined credit limit where you can make multiple draws on your business bank account. You only have to repay the amount of money you’ve withdrawn, plus the interest. Since your credit line is revolving, you’ll be able to use these funds again as you repay the loan. Another benefit of a business line of credit is that most business owners can qualify regardless of their credit scores. Lenders often evaluate applicants based on business performance.
2. Working Capital Loans
When cash flow is tight, you can apply for working capital loans. You can use the funds to pay for unforeseen expenses and to keep your business afloat. There are different types of working capital loans available. You can also apply for a term loan if you have an idea of how much money you need. With a term loan, lenders give you a lump sum of money and you repay the loan through regular monthly installments.
3. Equipment Financing
With equipment financing, lenders give you the money you need to purchase equipment so you don’t have to pay for it up front. Similar to a term loan, you can repay the loan through regularly scheduled payments. Keep in mind that you can only use equipment financing to purchase or lease equipment for your business. For salons, you can use the funds from the loan to buy stylist chairs, furniture, fixtures, blow dryers, or a point-of-sale (POS) system. The rates, terms, down payment, and loan amount depend on your creditworthiness.
4. SBA 7(a) Loans
The SBA 7(a) loan is the most popular loan program offered by the Small Business Administration. It offers longer repayment terms and lower interest rates compared to other types of small business loans. Additionally, you can use a 7(a) loan for almost any business purpose, including expansion, daily business expenses, equipment, and more.
5. Merchant Cash Advance
Merchant cash advance is technically not a loan, but rather a cash advance against your future credit or debit card sales. Since it’s short-term financing, a merchant cash advance is perfect for emergencies or short-term business needs. Most people opt for this type of financing mainly because top-tier credit is not needed in order to qualify.
Denver Business Loans – Small Business Loans for You
If you’re looking to apply for Denver business loans, SMB Compass offers all these and more. Our loan programs are available for business owners all over the United States.