Getting finance for a hair salon

Many hair salons in the current retail climate find themselves operating on a tight cash flow. Running costs need to be paid out of monthly income and that often leaves little or nothing for expanding the business. One way of creating the necessary cash is to take advantage of a clever package for retail finance called Merchant Cash Advance. It works very simply and is well suited for the hair salon business. By showing a 12 month history of regular credit and debit card payments, the Salon owner is able to access the average monthly take in cash. This amount is then paid back as an agreed percentage of future card payments, ten or twenty percent each month, until the advance is paid back. Imagine then that the salon is looking a bit tired. You want to perform a make-over for the retail space, but haven't got the spare cash and are wary of taking out a business loan. But over the last twelve months, you've averaged £10,000 per month and are confident that you can achieve as much or more for the year ahead. So you take out a Merchant Cash Advance for that £10,000 and then pay back ten or twenty percent of your credit and debit card receipts until the initial amount has been repaid. Meanwhile, you can use that cash advance to replace the sinks, get those new mirrors you wanted, or perhaps the chairs you've seen online. It's not available to everyone. You need to satisfy a few conditions:

• You have to have a credit/debit card PDQ terminal and process at least £3,500 per month.
• You have to show at least 12 months of credit/debit data or 18 months if you need more than £30,000.
• You need at least a year left on your lease agreement and not be in arrears.
• You need to supply three trade references.

If you can satisfy those conditions then a Merchant Cash Advance could be yours in less time and effort than you might think. Here's what it can offer.

• It can be sorted out in 2 to 3 days and money paid straight into your business account.
• No credit or security checks are needed and you don't have to submit business accounts, though Limited Companies will require guarantees from the Directors.
• You know from the start what you'll be paying back. There are no unwelcome surprises.
• If your refurbishment means closing the Salon for a few weeks, you can arrange for flexible repayments.

So if you're looking to improve the Salon but don't want to weigh the business down with a costly loan, you could do a lot worse than take advantage of a Merchant Cash Advance. To find out more either complete our Merchant Cash Advance online enquiry form here or call us on 0845 126035.