Can You Get a Business Loan for a Salon or Spa?
If you’re interested in starting a new salon or spa, you probably want all the help that you can get. At State College of Beauty Culture, we know that starting a new business isn’t easy, but there are resources available to self-starters who want to build something of their own. Business loans, for example, can be a great way to get your new salon or spa off of the ground or pay down other expenses once you’re in business. It pays to take some time and learn the basic facts about them first though. Here’s what you should know and what you should consider.
How is Your Credit?
If you know your credit score you’ll have a better idea about which kinds of financing options you can qualify for. We go through the different types of loans later, and each has its own requirements and standards. If you think that you’ll need a co-signer, that’s something that’s good to know before pursuing a business loan.
How Long Have You Been in Business?
Are you just starting a new business or have you been around for a while? Depending on how long you’ve been in business, different financing options might be open to you or better suited to your specific needs.
Know the Types of Loans
That brings us here. There are a number of different loans that you can get, and knowing the difference between them can help you save on interest payments. There are SBA loans, which are backed by the United States Small Business Administration. They are ideal for borrowers with good credit and offer favorable terms, and you can take years to repay them. There’s also the SBA Microloan, which provides up to $50,000 that can be ideal for starting a business. In fact, a business plan is actually required to apply. You have up to six years to pay it back.
You can also apply for a business line of credit. You’ll be approved for a maximum amount and then you can withdraw money when needed, and you only pay interest on the money you actually take out. This flexible type of financing could be used to get you through a hard time or buy some useful equipment at a discount when an opportunity arises. Our business management classes can help you learn more about these financing opportunities and figure out which could work best for you in certain situations.
When Will You Pay it Back?
Taking out a loan is a big responsibility and you need to know when you’ll be able to pay it back. This is why we also offer business management classes that can help you learn how to better manage your funds and predict the ebbs and flows for your salon or spa. Knowing how much you have in assets, when you can expect peak season and more money coming in, and otherwise having a good handle on your business can help you out a lot here.
Your Hair Salon School in Wausau, WI
At State College of Beauty Culture, we’ll help you prepare for every aspect of running your own salon or spa. Whether in business management classes or beauty courses, our instructors will make every effort to give you the knowledge you need to succeed!