Cut hair and not your working capital
An ever-growing industry
From a standard cut and blow dry to colouring and smoothing, hair salons and barbers are the place we go for our hair treatment. With over 34,000 hairdressing businesses in the UK the sector is highly competitive, and as a result business owners are cutting prices to stay ahead of their competition. With lower incomes many hair salons and barbers simply don’t have enough profit and turnover to expand and grow.
Despite the crowded industry, in 2017 barbers and hairdressers made the top 10 list for most popular start-up businesses. With a potential large clientele, low running costs and the industry turning over almost £4.1bn in revenue it’s clear why this sector is so popular.
New start finances for hairdressers
We provide finance for all businesses in the UK, even new starts. If you are not yet trading or have been trading less than 3 years, your business would fall in the category ‘new start’. Often our new start customers fear the worst with thoughts of extortionate rates and a high chance of being declined, but this is not the case. We secure the finance over a rate that is affordable for the customer and on terms that best suit them.
Continue reading about new start finance by clicking here.
We recently helped a hair salon with the opening of their new store in Preston. The customer didn’t have the funds available to commit to such a large project but they knew that now was the right time to expand. The invoice totaled £12,000 including various equipment types such as technology, furniture and delivery. We approved the finance within just a few hours over a 3 year term.
£12,000 over 3 years = £395 a month
Hairdressing equipment finance
If you are thinking about purchasing equipment for your hairdressing business then have you considered leasing them? If funds aren’t available or want to maintain a healthy cash flow then finance may be the answer. With flexible terms available and protection of working capital, a lease is our most popular finance solution. Almost all assets are leasable and we can even fund the installation, training and delivery costs.
- Options – At the end of the agreement you can either keep, return or carry on leasing the equipment, its completely up to you.
- Flexibility – You can settle the finance agreement early, you can even add equipment to your agreement at any time.
- Terms tailored to you – We offer a range of terms for you to choose from including the length of the agreement and the amount of deposit you would like to put down – It’s completely up to you.
- Leasing has tax benefits – At a corporation tax rate of 19% your business could benefit from tax relief. Often our customers pay less overall than the initial invoice amount.
Popular assets we finance for barbers and hair salons:
Staying ahead of the competition
With ever increasing competition it is important to ensure your hair salon or barbershop stands out from the rest. If you need to refurbish or simply buy new equipment think about leasing it first.
- VAT Loans
- TAX Loans
- Commercial Loans
- Equipment Finance
- Fit out & refurbishment finance
Thank you for reading our blog about the competition within the hairdressing industry. For more information on business finance please call us on 01420 481 500.