With the demand for salon services rising, salon and spa owners can make use of salon loans in various strategic ways.

Updates and Improvements 

Updating the interiors of your salon is necessary to enhance visual appeal and stay ahead of the trends. Besides, technology has impacted the salon industry and services like digital consultations and automated booking systems are gaining popularity. Investing in these technological advancements can help you enhance efficiency and offer personalized services.

Investing in New Equipment

To provide the best experience to your customers, you need to say goodbye to those old scissors and clippers. Use the salon loan to invest in new tools, service stations, sinks, drying chairs, trolleys, and more. Modern equipment comes with energy-efficient features, wireless controls, and digital advancements. Beyond that, you can use the loan to invest in new lighting, ergonomic tools with a sleek design, and comfortable seating. These additions will transform your salon into a stylish space with a modern personality.

Adding More Supplies

To offer a smooth service to your customers your salon needs to be well-stocked with essential supplies. Firstly, you need the right tools like hair shears, trimmers, clippers, combs, brushes, curling irons, and sectioning clips. Other requirements are salon capes, aprons, towels, shampoos and conditioners, hair color, and various styling products. In addition, you will require cleaning solutions, disinfectant and wipes, and first aid kits.

Paying Employees

With skilled stylists and nail technicians being in high demand, wages have risen sharply. Filling up vacant positions in your salon with qualified personal care professionals will require more funds. At the same time, you may need to invest in staff training and skill development to deliver better customer service.

5 Salon Financing Options

1. Traditional Bank Loans

Traditional bank loans are the most common financing option for small and mid-sized salons. With relatively low interest rates and long repayment terms, these loans can be used for various purposes. Make sure to understand all the clauses in the lending contract to avoid facing the consequences of any violation.

2. Loans from Energize Colorado

The Energize Colorado team understands the needs of small businesses like a salon and the challenges they face. Our salon business loans range from $5,000 to $150,000 and come with competitive interest rates. We look beyond the typical benchmark of credit scores and consider the future growth potential of your business. With flexible terms and a time-saving application process, our financing options make it easy for salons to access funds when needed.

3. SBA Loans

These loans are backed by the U.S. Small Business Administration, and the 7(a) loan program is the most popular option. SBA loans have low interest rates and flexible terms, even though the lending standards are strict. You can apply for the loan through a standard lending institution like a bank or a credit union. If you default on the loan, the lender gets back the guaranteed amount from the government.

4. Business Line of Credit

A business line of credit is similar to a credit card, and eligibility criteria are less tight. The maximum sum you can borrow is fixed by a preset limit and you only pay interest for the exact borrowed amount. This offers a lot of flexibility to small businesses and makes it easier to handle emergency expenses.

5. Crowdfunding 

Gathering small amounts from multiple individuals through social media and crowdfunding websites can let you bypass traditional lending institutes. It is an effective way to gather funds without paying fees or being concerned about eligibility criteria. However, the campaign can be time-consuming, and the chances of collecting the amount you need remain uncertain.