Nail Salon Business Loans

What is a Nail salon loan?

Nail salon business loans are industry-specific loans offered by traditional and non-traditional lenders to support a range of business needs. It provides funds to manage capital flow, order necessary salon equipment, renovate their site location, hire staff, and more. The best solution for small or growing salons is acquiring the working capital to enhance their endeavors.

First Union is here to help! Various loan options can help your nail salon thrive.

Types of Nail Salon Business Loans and Financing Options:

Once you've confirmed the need for funds, consider the essential factors to you. Business owners should look for loans that offer great interest rates, down payments, and collateral requirements. Here are the more widely used loans to help nail salons grow.

There are many different loans a manufacturing company can utilize to help its business. Here are the more widely used loans:

• SBA Loans: Partly guaranteed by the U.S. Small Business Administration, traditional and non-traditional lenders offer SBA loans. The program provides highly flexible rates and terms ideal for small businesses. Well-established companies looking to expand their initiatives can use several SBA loans.

  Businesses must meet the following requirements to be eligible:

  • Operate for profit
  • Be considered a small business, as defined by the SBA
  • Be engaged in, propose to do business in, the United States or its possessions
  • Used alternative financial resources, including personal assets, before seeking financial assistance
  • Not be delinquent on any existing debt obligations to the U.S. Government

  These SBA loans, in particular, can benefit small but growing businesses within the chiropractic field.

  SBA 7(a) Loan: 7(a) loans are the most common within the SBA family. With access to up to $5 million in working capital for 25 years, these types are typically adequate for most industries. Interest rates are between 7-8% depending on trade and the nature of your business. Most businesses opt-in for an SBA loan fall under this 7(a) category.

  SBA 504/CDC Loan: 504 loans are particular; it provides long-term, fixed-rate financing through Certified Development Companies (CDCs), SBA's community-based partners who regulate and promote economic development within their communities. If your business needs to purchase commercial real estate or perhaps a large piece of equipment, this may be the ideal loan program. The borrower may need to provide 20% of the total value, with the SBA kicking in 40% and the lender the rest. The cap on this type of loan is generally $5 million.

  Businesses must meet the following requirements to be considered eligible:

  • Have a tangible net worth of less than $15 million
  • Have an average net income of less than $5 million after federal income taxes for two years preceding your application

• Business Lines of Credit: Banks, financial institutions, and other licensed lenders often extend credit to creditworthy customers to address fluctuating cash flow needs. It is effectively a source of funds that borrowers can readily tap into at their discretion. Borrowers use this financing option rather than taking a significant, long-term business loan. When borrowers open a business line of credit, they receive access to a state amount of funds to use as needed. A monthly statement reflecting the amount of credit used will also include any interest charges, and borrowers will only pay interest on the funds used.

  Most lenders will require the following basic information during the application process:

  • Copy of Business License
  • Tax Returns
  • Three months of Bank Statements
  • Standard financial documents like P&L, AR, AP, Cash Flow, etc.
• Equipment Financing: Equipment loans are funding options that allow for business-related equipment purchases. Equipment can include phone systems, computer monitors, printers, copiers, salon chairs, lights, nail colors, massage chairs, specialized machinery, and more. Most lenders will require three years of tax returns for the business, the purchase agreement of the equipment, personal financial statements, and identification of each owner.
• Long-Term Business Loans: This type of term business loan provides borrowers with a lump sum of funds, with a repayment plan of regular intervals of 5 to 25 years. This financing option is best for businesses that need significant capital at a lower interest rate. A long-term business loan has a fixed floating interest rate and monthly or bi-monthly payments deducted from a business bank account.

• Short-Term Business Loans: Short-term loans can be highly beneficial during a growth period, fluctuating cash flow times, or a need for seasonal purchasing. Small or medium-sized businesses can use these loans to enhance their activities. It provides a lump sum upfront to a borrower and has a repayment period ranging from three months to three years.

  The application process requires proof of ownership of your business, financial statements, tax information, P&L statements, and a copy of your driver's license. Lenders will check your business and personal credit as well. Short-term loans have almost no limitations on their uses, and borrowers can decide how to spend the funds once they receive them within 1-2 business days.

How to Apply for Nail Salon Loans: Requirements and Getting Started

If your business has come to a point where funds are needed to generate a greater profit return, acquiring a small business loan may be the best option.

First Union Lending is here to help.

Submit your business information below to determine if you qualify for any available small business loans. Our Funding Specialists will analyze your qualifications and will reach out to walk you through the following steps.

While each of the loans have varying qualifications, lenders will typically ask for the following general information:

• Business Operations History
• Business Revenue Statements
• Personal & Business Credit Scores
• Collateral if needed

Online lenders like First Union provide various salons with the funds needed to grow and succeed.

If you have any questions in regards to any salon-related business loans, feel free to give us a call: 863-825-5626

Advantages of Retail Business Loans

Depending on the loan you qualify for, there are many benefits in partnering with an online lender to gain funds for your business initiatives. The funds from these financing options can be used to solve various issues that arise during the day-to-day activities at your business.

It provides the working capital needed to maintain necessary maintenance equipment such as computers, salon chairs, lights, towels supplies, cleaning supplies, clippers, and more. Funds are not limited to purchasing and maintaining equipment. Borrowers can use it to renovate and expand a site location.

These funds can be used to enhance your business advertising and onboarding new employees to streamline your business better. These loans can be used to expand your business by purchasing land to build another location, purchasing more storage space for inventory, or paying for a more prominent place.

These funds can be used to enhance your business better to serve clients in need of your style guidance. Utilizing out-of-pocket funds can be expensive. Look to a lender to finance your initiatives and keep your business running.

Choose First Union Lending As Your Premier Lender

At First Union Lending, we have an unwavering belief that small and medium-sized businesses deserve the right to access the capital they need to succeed.

Our goal is to build long-term, lasting relationships by providing business owners with what they need when they need it. We pride ourselves on being educated, knowledgeable, and caring about conducting business. We have voluntarily acquired much of the same licensing traditional banks require to cement our fiduciary responsibility to our clients and work culture.

We are here to consult, help you save, and guide you and your business to success.