About Nail Salon Supply Financing
Businesses that specialize in nail care supplies are in high demand. Many of these products, such as nail polish, acrylic nails, nail files, gels, and more, are consumables. That means that consumers and nail salon owners need to replace them regularly, creating continuous demand. In addition, trends continue to fluctuate. These factors can make it difficult for companies to keep up on their supplies and inventory. Nail salon supply financing allows you to strategize and ensure you have the funds to invest in your business without causing problems for your cash flow.
In addition to inventory procurement, online sellers require capital for marketing campaigns, platform fees, product launches, and more. Plus, eCommerce sellers know that unexpected setbacks are bound to occur from time to time, so it’s important to have some cash on hand to deal with such emergencies. Securing funding is one of the easiest and most effective ways to ensure the continued success, and even growth, of your business.
Nail Salon Supply Financing Opportunities
The many nail salon supply financing options available are great for online sellers, but it can be overwhelming too. Each one is unique regarding eligibility, repayment requirements, and amount of funding available. You may not qualify with some funders, and others may ask for too much in exchange for the capital you need. Therefore, in order to help you narrow down your choices, it’s a good idea to minimize your budget and figure out your priorities. Then, you’ll be able to more easily narrow down the options to find the one that will best serve your business’s unique needs. With that information in mind, we’ve compiled a list of the best options when it comes to nail salon supply financing.
Bank loan
A bank loan provides eligible businesses with a large lump sum of money to cover business expenses. These can include day-to-day expenses or larger purchases like equipment or operation expansions. It’s a great loan option for those who can afford the large monthly payment and are eligible to obtain it.
Besides the large lump sum that you’ll be able to take advantage of, bank loans often have lower interest rates than other types of financing. This is because of the strict eligibility requirements, which, if you meet, qualify you as low-risk. Collateral isn’t usually required, although it does depend on the lender and your qualifications.
On the other hand, bank loans have relatively low approval rates. High credit scores and long business histories are usually necessary. If you’re a newer seller, then this loan type probably isn’t the one for you.
Revolving line of credit
A revolving line of credit is similar to a credit card, as you get access to more funds as you make payments on the loan. It’s a useful loan to have for emergencies, last-minute purchase orders, and day-to-day expenses. Due to low limits, this isn’t a loan that can cover large purchases, so you’ll need to look elsewhere if you plan on expanding or upgrading equipment.
Revolving lines of credit tend to have very lenient requirements, so many businesses can qualify. It’ll help you boost your credit score as well, until you can obtain a larger or better loan. You can use the funds on whatever business expenses you have and when you want to, as they don’t dictate your spending schedule unlike other loan types.
However, due to the lenient requirements, they consider you a high risk, so you’ll have higher interest rates to pay. The borrowing limit is on the lower side, which means you won’t be able to make expensive purchases. Read your contract carefully, as some lenders add extra fees for various reasons.
Inventory financing
If you’re in need of inventory, then inventory financing can provide you with the funds necessary to stock your warehouse. Your loan will be secured by collateral, which is the inventory itself. You won’t have to worry about falling behind on trends or supplies when you have the cash to fulfill purchase orders.
Inventory financing usually has lenient eligibility requirements. Young businesses are able to apply and obtain funding through a quick and easy application. You’ll receive your funds in days, not weeks or months. You also won’t have to worry about risking personal assets because your inventory will serve as your collateral.
Remember, this type of financing can only be used for inventory. It often requires regular inventory evaluations from the lender. Some lenders may also have a loan minimum that can be too costly for some companies. They also may not cover the full amount you need for your inventory. Therefore, read your agreement carefully before determining whether or not inventory financing is right for you.
Revenue-based financing
Revenue-based financing is a type of funding that you repay with a percentage of your future profits. That means that your repayment amount goes up and down with your sales revenue each month and the repayment process can take as long as your sales volume dictates.
One of the benefits of revenue-based financing is the speed at which you can access the funds. The application process is usually quick and simple, you won’t need to go through credit checks, and your ownership will remain intact. However, revenue-based financing is only available to businesses that bring in regular revenue, so if you haven’t made many sales yet you may have to wait some time before trying for this type of funding.
Keep in mind that the cost-of-capital is often higher than the amount you would pay in interest on a traditional loan. However, if you don’t qualify for regular loans, or if you struggle to make high monthly payments, then revenue-based financing might be a good solution for you.
Merchant cash advance
If you need quick funds for emergencies or last-minute orders, then a merchant cash advance might be able to help. The repayment schedule will be determined by your needs and business type, and you can repay it with a percentage of your future debit and credit card sales. It’ll supply you with the cash you need in order to meet demand and keep up with those services.
The eligibility requirements of a merchant cash advance are lenient compared to other types of financing. Credit scores and business histories aren’t necessary during the approval process as long as you bring in regular revenue from credit and debit card sales. Collateral isn’t needed either, so you don’t have to worry about risking your business assets. The flexible payment options will help you optimize your budget.
With lenient requirements often comes a high cost of capital though. That tends to make a merchant cash advance more expensive than other traditional forms of financing. In addition, if you fail to make your payments, they may have the right to remove money from your account, regardless of sales volume.
Invoice financing
Invoice financing is meant for companies that have outstanding invoices. These businesses have made sales, but haven’t yet received payment from their customers. If they’re short on cash, this can cause problems. In this case, an invoice factoring company can purchase your invoices at a discount and provide you with the funding you need quickly. They will then collect the payment from your customer directly.
With invoice factoring, you’ll be able to obtain funds faster than you would have waiting for those invoices to be paid. The discount the factoring company asks for may or may not be cheaper compared to interest on a regular loan. You’ll have to calculate your budget to determine which one is better for you. With a factor, you can obtain up to 90% of the invoices’ worth right away.
Be careful when selecting an invoice factoring company to work with. There may be extra fees in the contract you sign, so read over it carefully. If your customers fail to pay the invoice, you might end up having to repay the factor, too.
Business grant
Business grants are given to eligible businesses by private organizations or the government. If obtained, you won’t have to repay the money. However, the grant-giving body will dictate the details of your spending. For those who can’t afford to repay a large loan, then this is a good type of financing to look into. They’re difficult to acquire though, as they often have long application processes and are quite competitive. In addition, many grants are given out to further a cause, so your business may not qualify for many.
The main benefit of a grant is that you don’t have to repay it. You’ll also gain credibility, which can be useful for those who are newer or have poor business history. That being said, grants are very difficult to obtain. It’s a long and tedious process, and many businesses that do qualify fall short due to the heavy competition. If you do manage to secure a grant, it’s only useful as a short-term solution. Most businesses thrive with consistent funding rather than large lump sums.
8fig for Nail Salon Supply Financing
Businesses that specialize in selling nail care supplies online need consistent funding to procure inventory, pay their marketing expenses, and stay prepared for anything. 8fig offers a unique funding solution designed especially for eCommerce sellers. It’s optimized for your cash flow, so you will be able to grow your business without worrying about going out of stock. In addition, 8fig offers sellers a variety of eCommerce tools and resources to ensure they can grow with confidence.
Why use 8fig for nail salon supply financing
As an online nail salon supply seller, consistent cash flow is the key to successful operations. Large lump sums aren’t always affordable or cost effective. 8fig offers continuous and flexible funding, so you can control your payment schedule and change the details as you go. You won’t fall behind with 8fig as your funding partner.
How 8fig works
1. Apply
The application process is fast and easy. Answer some questions about your business and sales, and then provide basic information about your supply chain stages and expenses.
2. Connect your store and bank account
In order to provide you with an optimized Growth Plan, 8fig requires that you connect your store and bank account to the 8fig platform.
3. Get funded
With 8fig, you can get funded in just days. Since 8fig funding is continuous, you receive capital infusions into your business right when you need it.
4. Make adjustments
If something changes and you need to adjust your payments, remittance schedules, or even funding amount, you can always do so thanks to 8fig’s flexibility.
5. Grow your business
All that’s left to do is sell, sell, sell. With 8fig, businesses are able to scale 2.5x as fast.
What 8fig offers in addition to financing
8fig is not just a funding provider; we’re a growth partner. In addition to optimized funding, we give you eCommerce tools to help your business succeed and grow. With the ability to manage your cash flow, plan your supply chain, track your sales, and forecast trends, you’ll finally be able to meet your goals.
The all-in-one 8fig growth platform gives you access to supply chain mapping software, sales analytics, freight booking opportunities, and more. The more information you have to work with, the better your operations will be—which means more money in your pocket.
Who is eligible for 8fig nail salon supply financing
The application process for eCommerce funding with 8fig is quick and simple, and you’ll receive your funding in days, rather than weeks or months. If approved, you can receive up to 90% of your supply chain costs, which takes the strain off of your budget. If you have 12 months of trading history, generate at least $100,000 in annual sales, and have made an average of $8,000 in revenue per month during the last three months, then you are encouraged to apply.
How to apply for 8fig financing
It’s easy to apply for 8fig financing, and it only takes a few minutes. Simply answer the questions and follow the prompts and you’ll get funded in no time!