Salon Equipment

How to Finance Salon Equipment

09.24.2018

Although financing is the most important element to consider before opening a salon, barbershop, or business, it’s often the last notion that comes to mind. People often shy away from financing because of all the hoops they have to jump through, from getting loan approval to an unexpected spike in interest. Find out how to start funding a new business with the options below:

Option #1: For a small salon, we recommend financing with a credit card.

Cash flow management is vital for any new business. Keep track of savings and debts while finding a monthly payment that works best. If $3,000 or more is needed, it’s a good idea to work with a financing company.

Option #2: Check with the bank.

Banks will give the best rate for the cost of funds, but they usually don’t easily lend to small companies, especially those in the service industry with equipment that has little to no resale value. They may ask for additional collateral including your home, vehicle, or other valuables. Keep this in mind before signing the contract.

Option #3: Finance with Beneficial Capital.

Since the mid-’90s, Beneficial Capital, an independent finance company based out of St. Louis, Missouri, has helped salon owners with their services whether they’re remodeling, opening a new salon, adding another cosmetology school, or expanding their business. Fast forward to 2018 and 95% of Beneficial Captial’s business is related to the beauty industry!

“We’ve had the pleasure of speaking to salon owners at every aspect of their career,” says Ken Krebs, President of Beneficial Capital. With 30 years of going to beauty industry shows, Beneficial Captial hosts classes on how stylists can turn their dreams into a reality with their finance alternatives, helping salon owners think through the project and make the right decision without attaching personal collateral other than the equipment itself.

By helping more salon and spa owners succeed than any other finance company. Beneficial Capital has earned the confidence of leading designers, manufacturers and distributors. Contact them at [email protected] for more information from their consultants!

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