Do you own a busy hair salon, nail salon or spa? Do you want to grow your clientele and sell more products and services?
You might think a thriving beauty business doesn’t need additional funding. However, if you want to expand or save big, an SBA loan can be the perfect answer.
SBA loans are the best bet for business owners for several reasons. First, they have the lowest rates around. SmartBiz SBA loans have rates from 6.25 to 7.25%*. That’s hard to beat. Second, SBA loans have a 10-year payback term. Long terms means your payments will be very low, helping you to manage cash flow. For example, if you get an SBA loan from SmartBiz for $100,000, your monthly payment is just $1,123 per month.
Finally, you might have heard that SBA loans are difficult to get. Fortunately, that’s not true anymore if you work with the right loan provider. SmartBiz has a streamlined online application along with stellar customer support. Funds can be in your bank account as soon as 7 days after the application is complete.
If you’re still not convinced that extra funds can help, here are some great ways those in the beauty business can use SBA loan proceeds to grow and save money.
Upgrading or purchasing salon equipment
Do you have outdated equipment that needs to be upgraded or replaced? Perhaps you have a tanning bed on its last legs or hair dryers that could use an upgrade. An SBA loan can help you purchase big-ticket items that your customers and employees will appreciate. Step away from the credit card – a low-interest SBA loan is the best way to go.
Adding a product line
Increase your income by adding to your current product line-up. Body care, hair accessories, make-up and more can enhance your salon’s image and bring more traffic in the door. If clients love your products, they’ll return over and over to replenish and try new things.
Working capital keeps businesses afloat and humming along; it’s the common measure of your company’s liquidity, efficiency and overall health.
If you don’t have adequate working capital, you run the risk of being unable to pay your short-term creditors – like vendors, the electric company or credit cards – on time. Beauty salon and spa owners absolutely need to have enough working capital in the bank to meet financial obligations and cover day-to-day expenses. A low-interest, long-term SmartBiz SBA loan will provide a steady cash cushion of working capital to keep your company running and growing.
Hiring highly qualified staff
Are you always booked up? Are there never enough slots available to accommodate regular and new clients? It might be time to add to your staff. An SBA loan can come to the rescue and can cover recruitment, salary, benefits and other costs associated with finding and onboarding employees. When the holidays approach, are you expecting a spike in business? Hiring temporary or seasonal employees can help you thrive during busy times.
If you need to get the word out about your products and services, increasing marketing is the way to go. However, marketing is often the first expense cut from budgets when cash flow is tight. So what should you do if your marketing budget has shrunk or is nonexistent? Consider financing marketing with a SmartBiz SBA loan just like you would finance new equipment or inventory. An SBA loan can help finance marketing initiatives like creation of direct mail collateral, social media advertising or a new website. The Small Business Administration writes that marketing is the key to future sales and cautions business owners not to ignore it. Explore a SmartBiz SBA loan to fuel your marketing efforts.
Refinancing Expensive Debt
A popular way to use low-cost funds is to refinance existing high interest debt. Debt refinancing is simply using the proceeds from one loan to pay off another. Although that might sound counterintuitive, eliminating expensive debt is one of the best things you can do to improve the financial health of your business. When you pay off one loan (or credit card or merchant cash advance or any other type of costly debt) with another, you’re doing it because the new loan is better. There are many ways a new loan might be “better” including lower rates, longer terms or supplying more money.
If you’re ready to bring your beauty biz to the next level, take five minutes to see if you pre-qualify for a low-cost SmartBiz SBA loan here. As a bonus for our blog readers, you’ll save $500 off of closing costs when you create an account and enter the promo code “blog”.
* Loans have a variable rate of Prime Rate plus 2.75% to 3.75%