The hairdressing and beauty industry is one of the most competitive industries in the UK and one that is ever-growing. The UK is counting more than 43 000 hair and beauty salons throughout the country according to the NHBF. Every high street has its own notorious experts and small or medium-sized businesses in the field.
In front of such fierce competition, professionals need to cope with the market’s evolution by having enough cash to make their business stand out. This is why the various hair salon business funding options can be a great way to take your salon to the next level.
What is a hair salon business loan?
A salon business loan is a quick cash injection for any specialist working in the hairdressing and beauty industry wanting to deal with the issues that face their company or introduce a new innovative concept. This will enable your business to develop, attract more customers and become one of the references in the industry.
What are the different types of hair salon business funding?
There is so many different business funding options that can work for your salon and we are here to walk you through every single one of them:
– Secured loans
Secured loans is a mechanism put in place by all banks when they grant your business a loan. It is both legal and commercial, and its purpose is to protect the bank against the risks of the loan by securing it with what you already own whether it’s stock value, property or vehicle. The bank can use this guarantee to recover the balance of the sum due.
– Unsecured business loans
An unsecured business loan does not require any security. Instead, it is based on the solvency of the small business. One of the most common unsecured business loans among founders is the start-up loan. This loan can help ensure the money you need to start your business company with low interest. The UK government offers an amount of £500 to £25 000 depending on the scale of money you need from the beginning to get your project up and running properly.
– Merchant cash advance loan
It’s an alternative funding option made available exclusively for the hair and beauty industry. It’s one of the UK’s most exciting funding solution for small business and SME’s. Merchant cash advance is not your typical traditional business loans because there is no interest rate (APR). You can receive between £3000 and £300 000 which can help you reach your business goals and meet all your operational obligations. It’s flexible, affordable, quick and easy to obtain. The repayment of this loan depends on your credit score at the end of every month sales. The repayment can be short-term or long term depending on how much you are making.
How can you use this hair business loan for your salon?
Salon owners can use this business financing options to enjoy flexible finances, attract more customers gain more positive reviews and develop their brand image.
You can develop your own space by renovating it with an eye pleasing décor that can provide customers an exquisite experience. Hairdressing salons require good lighting. It is an excellent opportunity for your business to improve its concept.
– Technological improvement
You can work on the software and technology that you use for a better customer experience when it comes to fast booking, social media and website presence.
– Training and hiring staff
A well-trained staff is a game changer for any hair salon. Your staff is your most valuable asset that will ensure long term success and a better customer experience. It will also ensure the staff’s job retention. Furthermore, you can look for new key talent for your business expenditure as well as increasing their engagement.
How to apply for a hair salon business loan?
Once you have found the business loan suitable for your salon, you can begin the application process. You will need to provide a variety of information such as bank statements, a business plan and details of your income statement.
Prepare the financial documents ahead of time so that it is transparent and easy to understand. This will increase your chances of the application being accepted.
A solid business plan that outlines how the loan will be used and how you intend to repay the loan on a monthly basis will help you make a compelling case for your beauty salon business loan application.
How can Veritas Noble help you?
At our registered office, we can help you choose the right business funding option for your beauty salon. Our experts can walk through the whole process from eligibility to filling the application, and to getting it accepted. At Veritas Noble, we can assist you in obtaining the funding that you need and that is most beneficial to your company.