Business Loans for Nail Salons: 5 Options You Should Consider

2015-02-23

Jeffrey Bumbales

Operating successful nail salons entails a variety of expenditures. In order to attract clientele, you need to provide exceptional services that consumers will repeatedly seek. This requires hiring qualified and highly trained nail technicians, stocking the most desired nail products and accessories, and maintaining a clean, attractive, and modernized store. Fortunately, with the array of small business loan options available to you, you can secure the finances your business needs to flourish.

1. Commercial Loans- The most popular loan option available, commercial bank loans provide low interest loans with long-term payment plans, providing business owners the most money for the lowest price. Unfortunately, the application process is exhaustive and requires a detailed business plan, projected revenue, personal and business credit reports, and, in many cases, collateral to ensure payment. Providing you are an established business with a history of financial success and great credit, you are likely to qualify. However, new businesses or businesses with poor or nonexistent credit are unlikely to be approved.

2. Venture Capital- Venture capital is a viable method for launching new startup ideas. Venture capital is a form of equity financing where private equity investors purchase stocks in your company in hopes of profiting off of the success of your business. Venture capital investors will require a foolproof business plan that assures them your business will be a success. They are particularly interested in cutting-edge ideas for startups that offer a unique approach to the industry. Franchises, acquired businesses, or unimaginative ventures are unlikely to receive financing.

3. Government-Backed Loans- Government-backed loans provide financing options for those ineligible for traditional business loans. While they have higher interest rates than commercial bank loans, they are much easier to qualify for and can be obtained even in the absence of established business credit. They are long-term loans, enabling you to pay them off slowly overtime, creating less stress for new businesses.

4. Online Business Loans- Online business loans are usually issued for smaller purchases, rather than covering the bulk of your business expenses. While they have higher interest rates than other loan options, they are very easy to qualify for and enable businesses to obtain rapid loan approval to cover business costs. This is great in times of urgency, such as essential equipment repairs, because it allows you to get the money within just a couple of days.

5. Business Credit Cards- Business credit cards offer business owners access to a constant stream of on-hand cash so that you never find yourself in a financial bind. Unsecured lines of credit can be very hard to qualify for and require excellent business credit, whereas secured lines of credit are available to new businesses that are willing to provide collateral.

Operating nail salons can prove to be a very lucrative business endeavor that is likely to provide excellent returns on investment. Nonetheless, the success of your new business is contingent on the availability of resources, the quality of staff, and the cleanliness of your store. In order to meet these objectives, accessing business loans for nail salons is essential. For all your working capital needs, contact Credibly.