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Salon Equipment Financing in 2020: Everything You Need to Know

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Whether you’re opening a new beauty salon or looking to grow your business by upgrading your salon equipment, interest rates are at an all-time low this year, so it could be the best time to take out a loan or other financing.

While there are several small business loan options to consider, there are some specifically geared toward beauty salons and spas looking to buy equipment. We’ll cover all your financing options here and help you determine which is the best fit for your business.

Salon Equipment Financing for 2020

Because there’s such a wide range of options when it comes to getting a loan for beauty salon equipment, there’s truly something for every business, regardless of credit scores, revenue, or time in business.

Financing salon furniture or equipment directly from a supplier may not even require a credit check, which is great if you haven’t yet built up your business credit. (Get your free business credit scores to see where yours stands.)

If you opt for an equipment loan, you may be required to have credit scores of 650 or more, depending on the size of the loan. The good news is that the equipment you’re buying will serve as your collateral.

Chat with our Credit & Lending Experts

Chat with our Credit & Lending Experts

Get free, unbiased financing recommendations based on your business needs from our team of Credit & Lending Experts.

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3 Options for Salon Equipment Financing

Now let’s dive into your business loan and financing options for your hair salon or spa.

Wholesale Salon Equipment Financing

Many salon equipment retailers will sell you stylist chairs, stations, and supplies directly and will even offer their own financing options. 

Rates

Rates will vary depending on the vendor’s financing terms. Many offer 0% APR for the first 6-12 months, so if you can pay off the loan, you won’t pay anything in interest. Others offer on average 9.99-19.99% rates.

Requirements

Requirements to qualify for financing with a vendor will be different than with a traditional bank. The vendor may not require a credit check…then again, it might. Generally, we’ve seen vendors who accept applications from businesses with bad credit history up to those with stellar credit. Ultimately, your credit score may help you get a better rate.

Most salon equipment lines of credit and loans through vendors have terms of 12-60 months.

Amounts 

Whether you need a $1,000 barber chair or a full $100,000 build-out for your entire salon, you can find financing. Some applications have a minimum purchase requirement of $1,000-5,000.

Pros & Cons

The benefit of financing equipment directly from a wholesaler is that you’re paying less than you would with retail. If you’re able to pay back the financial loan quickly, you won’t incur interest charges.

On the other hand, if you can’t pay it off before interest rates kick in, you’ll pay more over time for your equipment.

Lease and Lease-to-Own

Another option is to lease equipment, with the option to purchase. If you know you’ll need this equipment long-term, you can conserve cash up front and then have the benefit of owning equipment you can later sell for a profit.

Rates

Leasing salon equipment usually involves a set monthly rate for as long as 60 months.

Requirements

For financial leases under $75,000, you may not be asked to provide financial statements for your business, but if you want more than that, you may be required to provide statements for your last two years in business. You generally do not need a down payment.

Amounts

Lease-to-own options can go as high as $500,000 in most cases.

Pros & Cons

Leasing equipment you can eventually own gets you the latest technology without a huge upfront payment. You can get approved for a lease even if you have a bankruptcy on your record, which isn’t always the case with business loans. The drawback is that by the time you have paid off the lease, the equipment might be outdated.

Equipment Loans

You can also take out an equipment loan, specifically designed to provide you capital to purchase equipment to run your business.

Rates

Rates can range from 2% (usually an introductory rate or for very high credit scores) up to 20%.

Requirements

Typically, lenders want you to have been in business at least two years, with revenues of $50k or more. You may also need a credit score of 650+.

Amounts

You can secure anywhere from $5,000 to $5 million with an equipment loan.

Pros & Cons

Because your equipment serves as your collateral, you don’t need a cash down payment for an equipment loan. It can be a great tool for building your credit if you pay your installment on time. On the other hand, you may need a higher credit score than with other options mentioned above.

Check out our equipment financing partners below.

TimePayment is an award-winning equipment leasing company that specializes in transactions with a selling price Learn More

View More Offers

Currency Capital is a leading online equipment financing network serving thousands of small- and medium-sized Learn More

How to Qualify for Salon Equipment Financing

While lenders will have their own requirements for financing and leasing programs, you can start with the following.

-Make sure you have an active business license or permit with your state’s Secretary of State. Salons are required to have specific licenses, so make sure you’re compliant.

-Stay on top of both your business and personal credit scores, as they both matter. You’ll need a minimum of 600-650 credit score to qualify.

-Make sure your credit history is spotless. If you have a bankruptcy in the past seven years or unresolved tax liens, you may not qualify for some financing programs.

Is it Possible to Qualify for Salon Equipment Financing with Bad Credit?

It is possible to be approved for a salon equipment small business loan with less than stellar business or personal credit, but know that it may limit your options and get you a higher interest rate.

Generally, it’s better to clean up your credit history or even build it from the start by opening a few business credit cards and paying your bill in full or opening a line of credit with a vendor who will report to credit bureaus before applying for a loan.

How Many Years Can You Finance Salon Equipment?

Again, this will vary from one lending institution to another, but many equipment financing options will let you finance spa, salon, and barber equipment for up to 60 months.

Should You Buy or Lease Salon Equipment?

As mentioned above, leasing spa or hair salon equipment is a great way to get what you need to run your business without a large upfront expense. But weigh the benefits and drawbacks of a lease versus purchase carefully.

Pros of Buying Salon Equipment

Buying equipment means it’s yours to do what you want with. You can sell the equipment and recoup some of your business expenses. Equipment and beauty salon loans make it easy to get what you need even if you don’t have the cash flow to pay for it.

Cons of Buying Salon Equipment

If you’re just starting out, you may not qualify for spa financing. If you have any negative marks on your credit, you may find it hard to get a term loan that doesn’t have astronomical interest rates.

Pros of Renting Salon Equipment

Leasing equipment may not require a cash down payment, which is great on your budget. With leased equipment, you can surrender the equipment when you’ve paid off the equipment lease, or buy it for a low price based on the lease terms.

Cons of Renting Salon Equipment

A salon equipment lease may not help you build your credit scores the way beauty salon loans might. If building your credit is important, this may not be the best small business funding option.

Alternative Financing Options for Salon Equipment

If none of the above equipment financing and leasing options appeal, or if you don’t qualify for them, here are some other traditional and online lenders to consider.

Nav’s Final Word: Salon Equipment Financing

You want to offer your customers the latest salon technology so they can look and feel their best. Taking out a business loan or leasing salon equipment can help you maximize your working capital and keep your business growing.

This article was originally written on June 29, 2020.

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Car Subscription Australia: How to Choose a Car Subscription Service

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In uncertain times, you might think differently about things. For example, instead of buying and owning a car, there’s a chance you could have recently searched ‘car subscription Australia’, only to be confused at what is out there in the car subscription service space. 

That’s understandable – car subscription is a new idea, a new way of thinking about essentially paying to borrow a car long term and being able to swap cars if your circumstances change. Or, if you don’t need a car anymore, to simply return it without having to worry about the fuss of selling the vehicle.

So what is car subscription? How does it work? What type of person would it suit? How long has it existed? Who invented it? These questions will be addressed in this article, where we take a look at the pros and cons of car subscription, and – perhaps importantly for those out there who aren’t quite sure it’s the right solution for them – we’ll look at car subscription vs buying and car subscription vs lease.

What is car subscription?

Volvo has its own plan called Care by Volvo, and that will be launched in Australia in 2021. Volvo has its own plan called Care by Volvo, and that will be launched in Australia in 2021.

If you’ve ever paid to watch a movie using your Apple TV or Google Chromecast, this concept will be easy to understand: you pay to borrow the movie instead of buying a DVD from a shop and keeping it at home as a possession, while only watching it every now and then – if that. 

With car subscription you simply pay to use a car for a period of time. And the price you pay to subscribe includes all the costs you don’t want to have to deal with when you own a car – servicing, insurance, roadside assistance, registration and depreciation.

Car subscription allows users to subscribe to a car to use – and typically, the best plans offer monthly vehicle use periods, allowing you to either keep the car you have, or return it if you don’t need it. Or, if you need to swap from a city-friendly hatchback to a seven-seat SUV, some subscription services allow you to do that, often at an extra cost.

Are car subscriptions available in all locations? Sadly, not yet. The idea is pretty new to Australia, with a number of services launching in recent years. They include Carly, Carbar, Hello Cars and Blinker (which lots of people think is actually called Blinkers!), and you can find them online or in the app store.

Depending on your location, you might have access to one, some, or all of these services. Simply search ‘car subscription’ plus the name of your city, be it Sydney, Melbourne, Brisbane, Perth or somewhere else, or just type in ‘car subscription near me.’ A lot of these services are in their infancy, so you might not have access to one depending on where you live. Keep that in mind.  

Globally, car subscription has been around a while longer. The first service was apparently established in Hawaii about a decade ago. It’s come a long way since then, with luxury car brands now getting in on the action: Volvo has its own plan called Care by Volvo, and that will be launched in Australia in 2021. While in Europe, Jaguar Land Rover has recently launched Pivotal, a subscription service that could allow you to switch between an electric car for urban duties, or an off-roader for adventure times.

Who does car subscription suit?

 The first car subscription service was apparently established in Hawaii about a decade ago. The first car subscription service was apparently established in Hawaii about a decade ago.

Essentially, if you’ve thought to yourself: ‘I’d love to be able to drive rather than take public transport,’ then car subscription could be for you. 

Further to that notion, it could suit just about anyone who thinks they need a car at some point in their lives. You might be the sort of person who only uses a car occasionally, travelling to friends’ places or back home to the country.

Or you work as a contractor and need to get to an office over a three-month period. Or you’ve got a family SUV and just want something smaller for your grown children to use because they keep stealing your wheels.

Pros and cons of car subscription

Car subscription costs can be quite high, so you need to make sure you’re actually getting your money’s worth. Car subscription costs can be quite high, so you need to make sure you’re actually getting your money’s worth.

The pros are pretty clear: you don’t have to pay a huge lump sum for a depreciating asset, and the costs of ownership are all taken care of. That’s the biggest advantage.

Other ticks for car subscription include the fact you can change cars if your needs or requirements shift. You can also cancel your plan if you don’t need a car anymore. And while you don’t ‘own’ the car you subscribe to, you don’t have to share it with anyone else – which could be a reason you’d choose a subscription service over a car share service like GoGet. 

There are a few cons, though. The subscription service mightn’t have the car you want or need at a specific time. You mightn’t be able to access a service at all, based on your location. The costs can be quite high, so you need to make sure you’re actually getting your money’s worth. And there can be rules around letting other people drive the car, too.

Car subscription vs buying & lease – how do they compare?

With car subscription, there’s no huge buy-in cost, and you can get out at any time. With car subscription, there’s no huge buy-in cost, and you can get out at any time.

If you’ve ever bought a car outright, you know you need a wad of cash to get the car in your driveway. That’s not going to suit everyone’s budget.

Likewise, if you’ve financed or leased a car, you need to know you’re going to have guaranteed income to be able to cover the payments for the period of the lease or car loan. Miss payments, and your car could be repossessed, leading to a bad credit rating.

 But with car subscription, there’s no huge buy-in cost, and you can get out at any time. That’s part of its appeal – some providers offer no deposit subscription, and there are even some that have a no credit check policy prior to approval. That could be heaven-sent if you’ve got a chequered history with past payments.

Then there are other elements to consider when weighing up a subscription vs buying or a subscription vs lease. Only a car subscription allows you to change cars easily, and some subscription services also offer delivery and collection of your car when you sign up or finish with it.

Plus, if you happen to be in an accident, you’ve got a guaranteed loan car from most subscription providers.

 How much does a car subscription cost? What types of cars are available to subscribe to?

Most subscription services don’t offer you a brand-new car. Most subscription services don’t offer you a brand-new car.

That depends on the provider, the terms and conditions, and the type of car you need. Bigger vehicles or more luxurious models will cost you more to subscribe, as they cost more to buy.

To give you an idea, Carbar offers something like a 2016 Kia Cerato sedan for $139 a week. Think you want an SUV instead? Consider a 2019 Mitsubishi ASX or 2018 Subaru Forester for $189 a week. Want seven seats? You could get a 2018 model Toyota Kluger for $229 a week. Got posh tastes (or just want to impress someone?) Maybe a 2019 Jaguar F-Pace could be your go, but it’ll set you back $429 per week. 

Just for balance, you might want to check out what Carly has on offer. You could get a 2015 Holden Barina for $133 a week or do your bit for the environment and get a hybrid Hyundai Ioniq 2019 model for $287 per week.

Or maybe you want to subscribe to a car to allow you to drive for Uber or Ola – check the terms and conditions of your subscription contract before just assuming that’s okay! – and a 2018 Toyota Camry for $336/week could be perfect for you.

The above prices are indicative and may not be correct at the time you’re looking for a car, and that’s the thing: prices vary between providers, and so will the stock available to you.

So, you might be desperate for a seven-seat SUV for an upcoming family trip – but you can’t get one. That’s a pretty sizeable downside.

Plus, most subscription services don’t offer you a brand-new car. If you’re after that new car feel and smell, you might not get it – there are near-new models on most of subscription site listings but expect to pay more for a newer car than you would one that’s older.

How many different car subscription services/companies are there in Australia?

With Blinker, you can visit a dealership and see what stock is available, then choose a car and pay as you drive. With Blinker, you can visit a dealership and see what stock is available, then choose a car and pay as you drive.

There are several reputable subscription providers out there for you to shop between – provided the service is offered in your area. The ones we’ve already mentioned include Carbar, Carly and Hello Cars.

Blinker works a bit differently – you can visit a dealership and see what stock is available, then choose a car and pay as you drive. Other options include Motopool and Popcar.

The subscription plans vary by provider: some require you to pay a joining fee, others don’t; some will deliver and collect your car, others won’t; some offer short-term cancellation, others require up to 30 days’ notice.

You really need to make sure you’re getting the right car and the right subscription plan for you, so make sure you do your research. 

Not sure you want to commit to a car subscription? You could try a car sharing service first. Take a look at GoGet, or Car Next Door – both of which are run differently to the ‘regular’ subscription services.

How do you choose the best car subscription service to suit your needs?

First off, consider your location. Search ‘car subscription near me’ or ‘car subscription’ and the name of your town or city to see if you can access a car subscription network. That’s a crucial step.

If you’ve got plenty of options available to you – if you live in Sydney, Melbourne or Brisbane/Gold Coast, this could be you – then it’s simply a matter of seeing what’s available to you. But again, be sure to read the terms and conditions to see what you are – or more importantly, are not – allowed to do with the car while it’s in your possession.

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77 hospitals that received $5M to $10M in PPP loans

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Hospitals with fewer than 500 employees and medical offices were among the top recipients of Paycheck Protection Program loans from the federal government, according to data released July 6 by the Small Business Administration. 

The data only includes companies that received loans of more than $150,000. The White House said that more than 86 percent of the loans were for less than $150,000, so the data reveals just a snapshot of the companies that received funding, according to The New York Times. 

The disclosure comes after lawmakers pressed the White House to be more transparent about the loans, established as part of the $2 trillion Coronavirus Aid, Relief Economic Security Act. 

The data puts the funding into ranges, with the top amount being $5 million to $10 million and the lower end of the range being $150,000 to $350,000.

Here is a list of the hospitals receiving $5 million to $10 million, by state. 

Note: Some states didn’t have hospitals receiving $5 million to $10 million.

Alaska
South Peninsula Hospital (Homer)

Arizona
Mount Graham Regional Medical Center (Saffer)

California
Bakersfield Heart Hospital
Barlow Respiratory Hospital (Los Angeles)
Central Valley Specialty Hospital (Modesto)
Mammoth Hospital Southern Mono Healthcare District (Mammoth Lakes)

Colorado
Aspen Valley Hospital
Southwest Health System (Cortez)
Spanish Peaks Regional Health Center (Walsenberg)

Georgia
Wayne Memorial Hospital (Jesup)

Hawaii
Kauai Veterans Memorial Hospital (Waimea)
Kona Community Hospital (Kealakekua) 

Iowa
Buena Vista Regional Medical Center (Storm Lake)
Delaware County Memorial Hospital (Manchester)
Greater Regional Medical Center (Creston)
Mahaska County Hospital (Oskaloosa)
Montgomery County Memorial Hospital(Red Oak)

Idaho
Bonner General Health and Hospital (Sandpoint)

Illinois
Crawford Memorial Hospital (Robinson)
Jackson Park Hospital (Chicago)
McDonough District Hospital (Macomb, Ill.)
Roseland Community Hospital (Chicago)
Touchette Regional Hospital (Centreville)

Indiana 
Decatur County Memorial Hospital (Greensburg)

Kansas
Kansas Medical Center (Andover)
Newman Regional Health (Emporia)
Labette County Medical Center (Parsons) 

Kentucky
Harrison Memorial Hospital (Cynthiana)

Louisiana
Abbeville General Hospital 

Maine
Mount Desert Island Hospital (Bar Harbor)

Michigan
Dickinson County Healthcare System (Iron Mountain)
Kalkaska Memorial Health
North Ottawa Community Hospital (Grand Haven)
Scheurer Hospital (Pigeon)
Three Rivers Health 

Minnesota
Aitkin Community Hospital 
Community Memorial Hospital (Cloquet)
LifeCare Medical Center (Roseau)
Tri County Hospital (Carlton)
Welia Health (Mora)

Missouri
Cass Regional Medical Center (Harrisonville)
John Fitzgibbon Memorial Hospital (Marshall)
Perry County Memorial Hospital (Perryville) 
St. Alexius Hospital (St. Louis)

Montana
Community Hospital of Anaconda
Sidney Health Center

Nebraska
Kearney Regional Medical Center 
Nebraska Orthopedic Hospital (Omaha) 

New Hampshire
Androscoggin Valley Hospital (Berlin)
Huggins Hospital (Wolfeboro)
Speare Memorial Hospital (Plymouth)

New Mexico
Artesia General Hospital
Gila Regional Medical Center (Silver City)
Nor-Lea Hospital District (Lovington)

New York
Carthage Area Hospital 
Chenango Memorial Hospital (Norwich)
Eastern Niagara Hospital  (Lockport)
Erie County Medical Center (Buffalo)

Ohio
The Bellevue Hospital 
Van Wert Health 

Oklahoma
McBride Orthopedic Hospital (Oklahoma City) 

Oregon
Lake District Hospital (Lakeview)
North Bend Medical Center (Bandon)
Santiam Hospital (Stayton) 

Pennsylvania
North Philadelphia Health System
The Fulton County Medical Center (Mcconnellsburg)

Texas
Sana Healthcare-Carrollton Regional Medical Center

Vermont
Copley Hospital (Morristown)

Washington
Grays Harbor Community Hospital (Aberdeen) 
Prosser Memorial Health 

Wisconsin
Black River Memorial Hospital (Black River Falls) 
Crossing Rivers Health (Prairie Du Chein)
Reedsburg Area Medical Center 
The Richland Hospital (Richland Center)
Tomah Memorial Hospital 

West Virginia 
Pleasant Valley Hospital (Pleasant Point)
Powell Valley Healthcare 

More articles on healthcare finance: 
Elective surgery pause in Texas is bad credit news for hospital operators
HealthPartners to lay off 200, close clinics
6 latest hospital credit rating downgrades

 


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Want a home, but have bad credit? No problem, The J Group R.E. can help! – Yahoo News

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Want a home, but have bad credit? No problem, The J Group R.E. can help!  Yahoo News

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