The beauty salon industry in the United States including the hair and nail salon segment is worth around $43 billion after dropping to around $40 billion during the Covid pandemic in 2020. The industry employs around 800,000 people and it is already showing signs of revival in 2021. If you are running a beauty salon you would know that it is a labor intensive business with high inventory costs. The cash flow is not really a problem since payments are always upfront but revenues can be if your customers are unhappy due to any reason. Beauty salons are mostly small businesses and that deprives you from funding by traditional lenders. However, loans for beauty salons are easily available from alternative sources of funding.
Get hassle-free unsecured funding for your salon
The small business funding by alternative lenders is mostly unsecured because the requirements of small businesses like salons are also small and proportionate to the size of the business. It doesn’t mean that you can apply for a disproportionately large loan and it would be approved just because it is unsecured.
The alternative funding companies that provide this kind of unsecured credit are as professional as any other mega bank. They know very well where they are putting their money and hence they won’t approve a disproportionately larger loan. Just because an unsecured loan doesn’t require you to provide collateral, you must not borrow more than what you need.
Alternative lenders won’t check your credit history
In the assessment of an alternative lending company, as a small business your borrowings are small and hence the risk is less. They therefore don’t bother about looking into your credit history, which goes a long way in boosting your business confidence. All they are interested in is the viability of your business and whether you will be able to repay the loan.
As a small business owner in a competitive market, you know how difficult it is to manage cash flow and there could have been disruptions that leave an impact on your credit history. Thankfully, when you apply for working capital funding from an alternative source of funding, your credit history is not considered for assessing the risk of lending to you.
Funding for consolidation or capacity expansion
It is quite natural for you to think about expanding your beauty salon business by having more outlets. Of course you would think of doing that only when you are growing fast enough and have some surplus from your profits that you want to utilize for expanding your business. Business capital loans from alternative lenders will bridge the funding gap for your expansion.
The alternative business funding companies are designed to serve the small businesses like beauty salons and others. They have structured their lending processes to meet the needs of small businesses that usually require a quick turn around when they seek funding. Accordingly, your loan or cash advance would be approved and the money disbursed within 24-48 hours if you provide all the documents they require.