Flexibility of Beauty Salon Equipment Financing
We understand that your time is precious, especially when it comes to navigating the labyrinth of beauty salon equipment procurement. That’s why at Liberty Capital, we’ve streamlined the process with our simplified online financing application, ensuring you get the funding you need swiftly.
- Up to 120% equipment cost
- Up to $150,000 with a simple one-page application for salons
- Up to $5,000,000 with financial statements
- Next-day funding approval
- 12 – 60-month fixed payment terms
- No down payment required for qualified borrowers.
- Lowest Rates in the industry for qualified borrowers
- Eligibility for all new and used equipment financing.
- Will not appear on personal credit reports.
- No pre-payment penalties
We’ve provided Beauty Salon Equipment Financing for Franchisors who are mandated to upgrade such as mirrors, message chairs, therapy equipment and tables, and lobby furniture, TV’s, A/C units, counters, and POS reservation systems. We are a direct lender that specializes in the beauty industry market, so we can develop a customized finance solution geared to enhancing your property’s growth, image and bottom line.
Feature | Business Loans | Merchant Cash Advance | Equipment Financing |
Ownership | 50% | 50% | 100% |
Origination, Admin Titling Fees | Low | Low to moderate | Varies |
Monthly Payments | Monthly, Daily, Weekly | Daily / Weekly | Monthly |
Credit Minimum: | 600 | 500 | 650 |
Fund Disbursements | Client | Client | Vendor |
New/Used Equipment | n/a | n/a | Yes |
Maximum Term | 24 months | 12 months | 60 months |
Time in Business | 2+ years | 6 months | Startup Ok |
Interest Rates | Moderate | High | Low |
Application Only | $150K | $250K | S250K |
Funding Time | Same Day Funding | Same Day Funding | 1- 5 days |
Liberty Capital accommodates clients with to financing options that will yield very little working capital outlay.
- $99 for the first 12 months, requiring only a nominal start-up fee.
- 90-Day Deferral, offering zero payments for the initial three months
- Seasonally Varied plans, aligning payments with fluctuating cash flows.
- “0% Interest” for 24 Months with a 20% buyout, applicable to specific equipment
- “Stepped Down” Leases, with payments reflecting equipment depreciation.
- Fast online approvals for amounts up to $150,000, with full financials required for higher sums.
These solutions typically involve two primary options:
- Salon Equipment Financing:Businesses secures equipment financing for spa and salon facilities. These equipment financing allow businesses to spread the cost of the equipment over time, making it more affordable for business owners with equipment financing.
- Salon Equipment Leasing:Leasing involves off-balance sheet financing in the form of Fair Market Value (FMV). During the lease term, the business pays regular payments to the leasing company. Payments is deducted 100%. At the end of the lease term, the business may have the option to purchase the equipment, typically, 10% or based on current fair market value. Or, return the equipment, or negotiate a new lease agreement for upgraded equipment.
Both financing and leasing options offer benefits such as preserving cash flow, avoiding large upfront costs, and providing flexibility in of consistently having an updated equipment. Additionally, financing and leasing solutions for equipment may include maintenance, installation, delivery and service agreements.
Credit Requirements for Startup Salon Owners:
- Business license or active business entity with the secretary of state
- Personal guarantees required from all owners.
- Minimum 600 credit score
- No bankruptcies in the last 7 years
- No unresolved tax liens
Startup Salon and Spa Equipment Financing & Leasing
For startups, having reliable equipment is crucial. With Liberty Capital, you can acquire top-notch gear through affordable, fixed monthly payments, preserving your working capital for growth essentials. Our startup financing advantages include:
- 100% purchase financing
- Up to $150,000 with a straightforward application, or
- Commercial Loans up to $3,000,000 with financial disclosure
- Next-day funding, with pre-funding options available for beauty salon equipment vendors
- Fixed payment terms spanning 12 to 60 months.
- No down payment requirements for qualified borrowers
- Lowest industry rates for qualified borrowers
- Eligibility for all new and used equipment purchases, without impacting personal credit reports.
Therefore, beauty equipment financing have many benefits. It will save your business cashflow by financing depreciating assets. Avoid obsolescence and inflation buster. Don’t forget it builds asset for the business while benefiting from tax deductibility under IRS section 179 of these types of purchase. these types of equipment can be too expensive to buy, and anyway, they depreciate so fast. Equipment Leasing is the best way to go about it conserves cash and protecting from obsolescence. The best thing about Office Equipment Leasing is that you also enjoy tax benefits and the low monthly payment it affords you, same as the person that buys the equipment, most of these transactions will not appear on personal credit since it’s a business loan.
Whether you decide to lease, borrow, or buy outright, you will find yourself in need of an equipment leasing and financing is more easily accessible through your trusted business loan broker like Liberty Capital. Cash flow is King once it’s paid you can’t cash out of business equipment. Fixed asset should not be paid with liquid cash. There’s no such thing as secondary equipment marketplace who will refinance your paid off equipment. Liberty Capital understands that it’s not just equipment financing it’s all about the cash flow.
The Beauty Salon Equipment Financing Application Only up to $250,000
One of the utmost necessities for a beauty studio salon is its salon equipment. It’s imperative to ensure that operational equipment, which serves as an asset for the company, is well-maintained and kept current. Equipment loans or leasing are viable routes for expanding the beauty industry. Leasing, in particular, offers numerous advantages, though they won’t be explored here today. One notable benefit of equipment leasing is the accompanying tax advantages, cashflow saving, inflation buster and safety from obsolescence.
Covers many types of salon equipment Liberty Capital can finance.
- Styling Chairs
- Nail Stations
- Facial Beds or Treatment Tables
- Easier to get than a traditional business loan.
- Tanning Salon
- Washer – Dryers
- Booth and Massage chair and Tables
Business equipment loans are easy to get.
Here is why:
- Less paperwork
- No collateral needed; the equipment is the collateral
- Fast processing time
- May require less credit score for you and your business as well
- Less stringent requirements for qualifying
Understanding Equipment Financing for Beauty Salons and Spas
Beauty salons and spas rely on specialized equipment and furnishings to provide high-quality services to their clients. However, acquiring this equipment can be costly, especially for new or expanding businesses. Equipment financing offers a solution by providing the necessary funds to purchase or lease equipment while spreading the cost over time. This FAQ addresses common questions about equipment financing for beauty salons and spas.
- How does equipment financing work for beauty salons and spas?
Equipment financing allows beauty salons and spas to acquire the equipment they need without paying the full cost upfront. Instead, the business secures a loan or lease agreement with a lender, which covers the purchase or lease of the equipment. The business then makes regular payments to the lender over a set period, typically monthly, until the loan or lease is paid off.
- What types of equipment can be financed?
Beauty salons and spas require various types of equipment and furnishings, including styling chairs, treatment beds, skincare machines, hair dryers, and salon furniture. Equipment financing can be used to acquire both new and used equipment, allowing businesses to choose options that best suit their needs and budget.
- What are the benefits of equipment financing for beauty salons and spas?
Equipment financing offers several benefits for beauty salons and spas, including:
- Preservation of capital: Instead of tying up capital in equipment purchases, businesses can preserve their cash flow for other operational expenses.
- Flexible payment options: Equipment financing offers flexible payment terms tailored to the business’s cash flow, with options for fixed or variable interest rates.
- Tax advantages: Depending on the financing structure, businesses may be eligible for tax deductions or credits on equipment financing payments.
- Access to the latest technology: Equipment financing allows businesses to acquire the latest equipment and technology without incurring the full upfront cost.
- What factors determine the cost of equipment financing?
The cost of equipment financing depends on various factors, including:
- Creditworthiness: Lenders consider the business’s credit history, financial stability, and ability to repay the loan or lease.
- Interest rates: The interest rate on equipment financing may be fixed or variable and is influenced by market conditions and the borrower’s credit profile.
- Loan term: The length of the loan or lease term affects the total cost of financing, with longer terms typically resulting in lower monthly payments but higher overall costs.
- Are there down payment requirements for equipment financing?
Down payment requirements for equipment financing vary depending on the lender, the equipment being financed, and the borrower’s creditworthiness. While some lenders may require a down payment, others offer 100% financing options with no money down.
- What happens if I default on equipment financing payments?
Defaulting on equipment financing payments can have serious consequences, including repossession of the equipment by the lender. Additionally, defaulting can damage the business’s credit score and may result in legal action by the lender to recover the outstanding debt.
- Can equipment financing be used for upgrades or expansions?
Yes, equipment financing can be used to finance equipment upgrades, expansions, or replacements. Whether the business is looking to update its salon chairs, add new spa treatments, or expand its service offerings, equipment financing provides a flexible funding solution.
- How do I apply for equipment financing?
To apply for equipment financing, beauty salon and spa owners can contact lenders that specialize in equipment financing for their industry. The application process typically involves providing financial documents, such as tax returns and bank statements, as well as details about the equipment to be financed.
WHY LIBERTY CAPITAL?
Bank Hopping for Equipment Loans: Why It’s Time-Consuming and How Liberty Capital Can Help.
Searching for the right equipment lender especially if you’ve already been turned down by your bank, by hopping from one bank to another just trying to figure out whether they will approval you can be a time-consuming and frustrating process, especially if you have challenging credit. Each application involves time-consuming paperwork and potential rejections. If you get turned down, how many more lenders will you apply to before seeking better options from a loan broker?
Working with an equipment loan broker like Liberty Capital can streamline the process, saving you both time and money. Brokers have access to multiple lenders that can structure any credit profile specific to you, even if your credit is less than perfect. With their expertise and network, brokers can navigate the complexities of loan applications and increase your chances of approval. You may not know all the intricacies of equipment financing thus a loan broker will be able to help you navigate.
So why go through the hassle of bank hopping when Liberty Capital can do the work for you, ensuring you get the best possible deal?
What do I need to apply?
1. ONLINE APPLICATION: You can fill out our application, upload and authorized us to process. We do soft-inquiry, and our lender will do hard inquiries once you are approved.
2. Equipment Invoice or Quote for the truck or equipment you want to buy. Multiple vendors accepted. We’ll lump them into one monthly payment for you.
3. Banks statements (3-4 months) – Proof income, proof of banking, and proof funds availability in case down payment is needed and to match for ACH Payment Drafting – as an auto pay.
Equipment financing is vital for businesses that need expensive equipment to operate efficiently. Companies in construction, manufacturing, healthcare, and other heavy equipment-intensive industries benefit significantly from these financial solutions. Understanding the options and working with top financing companies can help businesses acquire necessary equipment while managing cash flow effectively.
