What is Salon Equipment Financing
Salon equipment financing is financing designed to help salon owners buy the equipment they need at accessible rates. If you’re looking to compete in the salon market and be profitable it’s important that you hire the best talent and use the best equipment to keep your clients happy and entice newcomers to keep coming back. This can be tough, however, and salon equipment can break the bank. Industry-standard equipment can add up and leave you flat broke or worse. Luckily, thanks to equipment financing options, you can get the equipment you need as soon as possible without paying for it all upfront. With salon equipment financing you can keep much-needed cash in reserve for payroll or unexpected expenses, while slowly paying off the price of the equipment you need to run your business.
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Many salon equipment vendors now offer to finance themselves, some are even offering to finance for those with no credit score. Some vendors, like BuyRiteBeauty, even have a 100 day no interest rate offer, which means if you can pay back what you owe in under 100 days you’ll pay no interest at all. It’s important to look at the fine print of these deals, however, as you may be on the hook for a significantly high-interest rate if you don’t pay off your financing in time.
If you chose to go the route of a more traditional equipment financing company like Currency Capital or TCF Financing, you can expect to see interest rates of between 6% and 24% depending on your credit score.
There are many salon equipment vendors who offer in-house financing for those who don’t even have a credit score, BuyRiteBeauty being one of them. So if you aren’t someone with a great credit history or any financial history at all, it might be best to try a vendor’s built-in financing option. Regular equipment financing companies will generally require a credit score of around 550 or higher, with your interest rate and terms being calculated based on your credit score. Some lenders may also want to see proof that your business has a profitable financial history.