Loans For Beauty Salons – Unsecured Salon Finance Options Online
Loans For Hair, Nail, Beauty Salons And Barbershops
We Help Beauty Salons Like Yours To Grow And Thrive
Everything You Need To Know:
Industry Overview
Hair & Beauty Sector
Finance Options
Loans For Hair, Nail & Beauty Salons
How To Apply
SME Loans Application
Industry Overview
Hair & Beauty Sector
Beauty salons, hair salons and barbershops contribute £7.5 billion to the economy annually. With over 42,000 of these businesses in the UK – 93% of all hairdressing, barbering and beauty enterprises are microbusinesses, employing fewer than 10 people.
According to the National Hairdressers Federation (NHF) and National Beauty Federation (NBF), there are roughly 337,000 people working in the hair and beauty industry. The ’heartbeat of the UK’s high streets’, reports reveal the enormous value of the industry, which grows significantly year upon year.
Our beauty salon loans can help your business grow!
Hairdressing, barbering and beauty salons are in the top 10 most popular independent startups. There are an estimated 500,000 freelance professionals across the UK, and whether you work in a barber shop, salon or are freelance – 2019 promises great potential for the industry.
Despite difficult economic times, the industry is responding to challenges with creativity. Many independent barbershops, hairdressers and beauty salons are diversifying their treatment offerings, investing in better equipment and tapping into new markets.
Whilst many industry professionals have voiced concerns about how the political uncertainty surrounding Brexit will affect them in the future, it was promising to hear that just under 90% stated that Brexit has yet to impact their businesses.
According to Salon Services’ Beautiful Britain Report, despite rising consumer prices, customers have not been deterred from investing in their favourite treatments. As it stands, just over ½ of hairdressing, barbering and beauty businesses have an annual turnover less than £99,000 and employ on average 3 full time and 2 part time staff members – with 1/3 of businesses planning on growing their headcount in the next couple of years.
An exciting time to be working in the sector, research shows that business owners are investing elements of their businesses to capitalise on future opportunities.
Top Investment Priorities For 2019:
| Investment | Salons | Barbers | Mobile Professionals |
|---|---|---|---|
| New Treatments & Services | 66% | 41% | 49% |
| New Equipment | 45% | 51% | 45% |
| Staff Training | 37% | / | / |
| Staff Hire | / | 24% | / |
| Marketing | / | 23% |
Finance Options
Loans For Hair, Nail & Beauty Salons
Unfortunately, it can be difficult for businesses in the hair and beauty industry to acquire funding from traditional financial institutions like banks. Banks tend to impose tough criteria and requirements for application – this is largely due to the small and seasonal nature of most hair and beauty businesses, which positions them as ‘high risk’ in comparison to other industries.
At SME Loans we champion the hair and beauty industry and offer funding options to beauty salons, hairdressers, barbershops and nail salons – to name a few! Our exciting alternative financing products make it easy for business owners to obtain the funding needed to continue to succeed.
Whether you need to cover new equipment, employ more staff or are looking to finance renovations, we can help. We’ve assisted beauty salon owners like you in overcoming difficult cash flow periods, moving into new premises, upgrading equipment and covering emergency unexpected costs.
As all business owners will know, upkeep is expensive when managing a salon or barbershop. There are several running costs needed to keep clients comfortable and happy with their treatments. From salon chairs to styling units, beauty trolleys to magazine racks – beauty salon loans and hair salon loans provide the perfect way to finance business improvements.
Similarly, our nail salon loans are the ideal solution for financing the purchase of nail technician supplies, new manicure tables, pedicure chairs and store renovations or expansion.
Businesses looking for funding can benefit from our finance products:
Merchant Cash Advance For Salons
Our fast and flexible alternative finance product, the merchant cash advance, enables salon owners to receive between £5,000 and £500,000 in just 24 hours. Unlike business loans, this product acts as an advance on the revenue your salon is predicted to generate through future credit and debit card sales.
After receiving the funds you require, repayments become automatic and are paid back using a small percentage of your customers’ card transactions. The beauty of the merchant cash advance is that you get to keep the total amount of income that your salon generates through cash sales and there is no interest charged on the amount you borrow.
** Is My Salon Eligible For A Merchant Cash Advance?**
To successfully apply for a merchant cash advance, please ensure that:
- You are a sole trader or limited company
- You as the business owner are over the age of 18
- Your business is registered and trading in the UK
- Your business has been actively trading for a minimum of 6 months
- Your business’ monthly card sales average a minimum total of £5,000
Business Loans For Beauty Salons, Hair & Nail Salons
Here at SME Loans we also have a panel of lenders who offer unsecured business loans for the hair and beauty industry. By choosing our business loan product, salon owners can access between £1,000 and £500,000 to finance existing or new ventures. After taking out a business loan, the money then gets repaid with interest in scheduled monthly instalments.
Because the loans we offer are unsecured, you don’t have to worry about providing security through personal or business assets, instead you may be asked for a personal guarantee. The personal guarantee exists to ensure that if your salon defaults on loan repayments, you as the salon owner will become liable for repaying the remaining funds to the lender.
Is My Salon Eligible For A Business Loan?
To be able to apply for one of our business loans, please ensure that:
- You are a sole trader or limited company
- You as the business owner are over the age of 18
- Your business is registered and trading in the UK
- Your business has been actively trading for 6 months minimum
- Your business has a minimum monthly turnover of £5,000
How To Apply
SME Loans Application
Our account managers are on hand to help you secure the funding you need. Should you need any guidance through the application process, or have any questions relating to the finance products we offer, please give us a call on 020 3475 9213.
Step 1:
Click on the application page. To ensure we match you with the best lender, we will ask for more information about your business. Please be ready to tell us:
- The name of your salon or barbershop
- The number of years you’ve been in business
- Your average monthly card sales
- The amount you are looking to borrow for your salon or barbershop
Step 2:
You will then be directed to the next step, where you will be required to disclose:
- Your title, first name and surname
- Your position in the business
- Your email and telephone number
Step 3:
Click to accept the terms and conditions and click ‘get my quote’. From here your application will be processed and reviewed by one of our approved business finance suppliers.
Step 4:
One of our account managers will be in touch by phone or email to discuss the terms of your loan or advance agreement.
Step 5:
After carefully reading through the terms of agreement, please sign the relevant documentation and return to the lender. You will then be able to access the funds in your account in just 24 hours.
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