Best Spa Business Loans Explained
In this section, we will explore how you can cover your spa business loan expenses by looking more closely at the top four loan types mentioned above.
Startup loans are a type of funding that cover small business funding from the ground up. Usually, it’s harder for startup businesses to attain traditional bank loans or SBA funds, because startups generally don't have enough credibility.
Although Startup loans are generally smaller and can have higher interest rates, they're an excellent option for small businesses that are at the start of their journey. This loan amount might not cover all your expenses, but you can use it to buy equipment, carry out day-to-day operations, or to upgrade your salon.
Fundera is a small business lender willing to work with startups and companies with a little-to-no track record. It's easy to get started with this company, and the processing times range from a few days to a few weeks, depending on the loan you're applying for.
SBA is a great option for small businesses with a good credit score and good loaning credentials. SBA is a government program that helps business owners via licensed lenders. The Small Business Administration provides licensed lenders with a guarantee, securing a promise of repayment if the financed businesses fail.
This loan type can be used to cover a range of expenses from construction and renovation to working costs and equipment purchases. An SBA loan can help your business with the costs of its initial launch through to the costs of its day-to-day operations.
If you want an easy-to-access solution for your SBA loan, we recommend using StreetShares. With competitive fees and affordable interest rates, this lender connects businesses with investors finding the commonality between the two parties.
Short-term loans are helpful during slow seasons and minor setbacks. They're similar to traditional term loans, however, the repayment period is relatively short (usually up to three years). Short-term loan lenders also charge higher rates. The nonpayment and late fees are also quite high.
Kabbage offers multiple short-term business loans. They are our number one choice of short-term loan providers as they boast a straightforward online review process and are generally quick to approve loans. You don’t have to meet a minimum credit score to get a short-term loan with Kabbage, however, you must have been in business for more than one year and your business must have revenues of more than $50,000
You will likely need to invest a lot of money buying equipment for your spa business. Specialized treatments and professional chairs can cost tens of thousands of dollars. Leasing or outright buying these items can be costly.
This loan will help you acquire equipment, avoiding the initial down payment. Upon closing the loan, you can choose to keep the equipment or upgrade.
We recommend National Funding for equipment financing loans. This lender offers loans of up to $150,000 for small business equipment leasing. National Funding only requires a credit score of over 575 and an equipment quote from the vendor. If your business has been around for at least six months, National Funding is an excellent option.
A merchant cash advance is a sound option for Spa businesses who want to expand their business or just need cash fast. This financial service is also great to use for payrolls or to improve marketing strategies to reach a broader market.
If your business is in need of fast cash for repairs or to invest in new equipment to meet new demands, Fora Financial is highly recommended. This type of loan is also ideal if you need to expand your business or to pay for unexpected expenses.
To get approved for a merchant cash advance you don’t need any collateral and can get approved in as little as 24 hours. There are also no restrictions on what you want to use the money for, so you can use it for what and whenever you need.