The best way to finance your salon or spa is by obtaining a line of credit. Our partner banks are approving Spas and Salons all across the country. Approved applicants can access these lines when they need them, without the need to apply again and again for many different loans.

Oftentimes, business owners mistakenly look at debt financing as a burden that would only be used if the business is not going well. This is not true, as the most successful spas or salons use debt financing to make more money. Choosing the right financing for your business is the main issue. Micro Loans or MCA’s (Merchant Cash Advances) have super high interest rates and can eat up any realized margins from the use of funds. That’s why it’s smarter for a spa  or salon owner to apply for a business line of credit. Most commercial credit lines have rates that start at 4% per year, with monthly payments. 

‍

A Spa or Salon might draw from a line of credit if they need to order bulk products. Most spas and salons carry retail products for their customers to use at home. These products most usually need to be purchased by the spa/salon and aren’t based on a consignment system.

Another way that a Spa or Salon might use a line of credit to make more money is by advertising new services or offerings. For example, a new package that includes facial and massage services can be advertised online. The initial advertising costs can be recouped from sold packages. Also a great investment for a spa or salon are gift card sales. Drawing from a line of credit can pay the upfront costs associated with the cards, software integration and online advertising. We’ve seen salons and spas sell massive amounts of gift cards, especially before the holidays (Christmas, Mother’s Day, Valentines Day, etc).

Why Can’t I Just Apply at my OWN Bank?

When you first chose which bank to use for your current business checking account, did you consider if they offered lines of credit for your spa business? Did you check on the qualifications? Most likely not. Just because you have a business checking account at your local bank, doesn’t mean you will be gifted a line of credit. This is exactly why Line of Credit Depot can help you obtain a Line of Credit. We have successfully opened thousands of lines of credit for our customers at ‘small business friendly banks’ all across the country.