A revenue based loan could be your salons lifeblood and provide it with several financial benefits. When your salon is growing, chances are you'll need an injection of cash to continue its growth. Bank loans are often times too restrictive and challenging to obtain. In this situation, a revenue based loan may be the best solution. If you use it wisely, a revenue based loan could do wonders for your salon. Without being capitalized, chances are your salon will wind up in a growth stalemate and that's not a good place to be.
Here are 3 benefits of a revenue based loan to fuel your salon:
#1. Helps Grow Your Salon
If your salon is under 2 years old and starting to scale, you obviously want to ride the wave. You cannot do this without a dependable source of capital. Bank criteria is typically a minimum of 2 years in business, strong cash flow ratios and perfect credit. LVRG is able to provide salon owners up to $1MM in a matter of days, as long as you’ve been in business for 1 year, $150,000+ in annual revenue and have a 500+ credit score. This type of loan will give you a shortcut to cash since it only requires a few months of business bank statements. Many times, your bank statements are enough to demonstrate that you can repay a revenue based loan.
#2. Get Cash Quickly
You're busy being a stylist and running a salon, you don't have to time to compile overly detailed loan packages and chasing after bankers. A revenue based loan will provide cash quickly with a very short turnaround time. If you are prepared to apply for a revenue based loan and have the appropriate supporting documents ready to go, you may be able to get funding in a matter of days. Compare that to a bank loan where the loan process is on average 2 to 4 months. This is one of the main advantages of a revenue based loan. Some salons actually consider this a lifesaver, and will go this route over a bank loan any day.
#3. No Lingering Debt
A revenue based loan will not weigh you down with highly encumbering, long-term debt. When you obtain a revenue based loan, you will not be looking at 5 to 10 years to repay a loan for money that you're using today. Think about it, why would you want the headache of paying off a 2015 marketing campaign all the way into 2025? Not to mention, having this type of long-term debt could hurt your chances for getting funding in the near future, which all salons will need if they plan to scale. With a revenue based loan, you will pay it off in roughly 6-15 months, which makes more sense for short-term expenses. Additionally, we are usually willing to replenish the loan after roughly 50% is paid down, so you can continue getting more capital along the way. Which is perfect for a growing salon.
As you see, the preceding steps show you how a revenue based loan could be advantageous for your salon. It helps you grow your salon quickly and it does not saddle you down with long-term, highly encumbering debt. It gives you the cash that you need quickly, to grow your salon, your way. What more could a growing salon need?
LVRG can provide you with the funding your salon needs to be successful. salons throughout the US are growing and thriving thanks to LVRG, let us show you how easy it is to get a revenue based loan for your salon. Call (855) 998-5874 today, we're here to help!