Traditional financing, including bank business loans, small business loans (SBA) and home equity loans, all come with risks.
Bank loans may be available at an attractive interest rate, but banks are reluctant to lend money to salons and spas because they typically do not consider salon equipment and furnishings as collateral. Banks routinely require additional assets such as equity in a home, personal investments or savings.
SBA loans can be easy to acquire, but the government typically charges a guarantee fee and may require a large cash commitment. In addition, you may be required to pledge additional assets such as equity in your home, or personal investments and savings.
And home equity loans are easy to obtain, but are limited in amount to the equity in your home, not the value of your home. In addition, if you miss a few payments, you may lose your home.
The Premiere Salon Finance Advantage