Beauty Salon Finance.

Beauty Salon Finance.

In times of economic stress and compacting markets it can be a touch challenge for beauty clinic owners to access to a number of types of business funding so to help their operation grow and expand. If we look at two important types of finance that can help underpin and strengthen growth in terms of capital equipment and acquisition, and also point of sale (POS) finances a good way of driving sales and increasing profit for the business owner, In any economic times.

To start with we’ll take a look at operations finance which we can use as an catch all heading which includes business equipment leasing, overdraft facilities, business loans and any other credit that you would use to grow your company. If you want some new equipment or facilities you would most likely finance this with a business loan or a lease, in good economic times there would be dozens of options available, but in recession, most asset lenders who have to fund assets to be in business tend to contract and point their activity to markets such as Gov bodies or the medical sector due to the given perception, and likely reality, that these markets are better covenants from them and therefore offer lower risk.

With less resource and access to funds it can be extremely hard for beauty salon owners to realistically expand their business.

A fairly new concept of obtaining a cash advance from credit card machines is sweeping the UK and USA and is an excellent for beauty salons to raise cash to expand. What happens is you can get a cash advance on your future sales that allows you to acquire new equipment to make more sales. There is no credit check as the agreed payback is inputted into your card machine.

The biggest advantage of this is that if sales are low one month, you only make small payments back, therefore eliminating the risk to your business.

However, if you have new equipment that increases sales, it makes good business sense because you are paying back out of those higher and more profitable sales. It gives you instant access to growth funds that you would not normally have. You can read more detail about the merchant account cash advance here

Now let’s look at point of sale finance or POS at it is also known. Some treatment courses such as IPL hair removal, skin rejuvenation or Laser lipo can cost upward of a few thousand, which a lot of people simply haven’t got the moment. Some clients will apply for finance options if you offer them, but the chances of getting passed for credit these days are getting harder and harder.
Enter your very own instalments plan. Ok, I here the shouts “but we are not a finance company” Of course you are not, and you don’t have to be. If you take cards you can take instalments. If not, uses standing orders, they are simple to set up. The point is this. Offer a plan where to take a reasonable deposit, say 25%, and collect the rest over 9 months.

Do read more about this in a separate article by Stephen Soos found here if done properly, it can transform your business and tap into a huge market that is hungry for what you offer, but do not normally believe that they can afford it.
There are a number of finance options available on our website and you are more than welcome to ask for help or advice on selecting which options suits your needs best of all.

Stephen Soos
Crystal Medical
www.crystalmedical.co.uk

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