Beauty salon equipment financing is becoming more and more in demand as the salon world takes advantage of state of the art innovations that can add more value to their customers.
And higher tech can also be higher cost for certain items, which requires a greater outlay of capital by the salon owner.
This is where equipment loans and equipment leases can be utilized to conserve the available cash flow in the business and utilize financial leverage to acquire assets that can be deployed to generate greater returns than the cost of acquisition and financing combined.
But like with any type of equipment financing scenario, the key to getting greater rates, terms, and leverage is when you are trying to acquire established assets from well known and well healed brands that are likely to continue on into the future.
The reason this can be important is that well established brands and equipment lines will have a stronger resale market than totally new technology that has not stood any type of test of time in the market place in terms of the end customer satisfaction as well as the the durability of the asset.
When you have equipment that is highly sought after either in new or used form, there are going to be more commercial equipment financing options as compared to situations where the asset, line, or brand are relatively new.
All that being said, if you have a well established salon that is looking to acquire new state of the art assets, great rates and terms can still be available to you, even if the assets are not well established in the market place yet with respect to resale.
When a business has good cash flow and solid credit, equipment financing companies will be less concerned about the longer term value of unproven assets and more concerned about the track record of the business satisfying its customers and turning a profit.
With equipment leasing as an example, business owners can arrange at or near 100% financing on a piece of beauty salon equipment. And if there is delivery, installation, and even training costs required as well, these costs can potentially be included in the lease, providing in excess of 100% financing in some situations.
Equipment loans are typically the lower cost sources of financing for “A” credit applicants where in order to get the lowest possible rate you may have to pay up to 25% down on the asset.
So the equipment financing solution that best fits your business will need to consider the impact it will have on cash flow at time of purchase as well as on a monthly basis during the lease or loan term.
As previously mentioned, used beauty salon equipment can also be financed provided that the projected future remaining life of the asset is greater than any financing term being sought by the business owner.
And when buying equipment for amounts under $50,000, approvals for financing can be secured in less than a day with funding to follow soon after.
To better understand your options for beauty salon equipment financing, we suggest that you give us a call so we can quickly go over your requirements and discuss different financing products available to you.
Click Here To Speak To An Equipment Financing Specialist For All Your Beauty Salon Equipment Financing Requirements