Since people’s attention is shifting to organic-based treatments, holistic remedies, and botanical beauty products, modern spa treatments are increasing.
Nowadays, many people are willing to try anything that will make them look younger and feel better. Thus, it has become ideal for people in the spa business to get loans from companies like ARF Financial. This way, they can obtain modern equipment to ensure that they get and retain clients. Here are some loan categories that you may consider.
Line of Credit
If purchasing specialized spa equipment is your long-term project, you need a line of credit. This loan is similar to a credit card. However, it has a lower interest rate, a higher limit, and a different mode of payment. Most people prefer this loan because of its flexibility; you are only required to make a small payment every month.
Short-term Business Loan
Also referred to as the small-dollar loan, this loan is very helpful and affordable. For example, if your backwash unit stops working during the wedding season or your heater decides to break down, this loan is your best solution. However, it is expensive and should only be used during emergencies.
General Business-term Loan
This loan comes in fixed amounts and is good for minor expenses. They are either unsecured or secured. Secured loans are relatively cheap since they use your spa equipment as collaterals. Unsecured loans, on the other hand, do not require any collateral. Thus, they tend to be more expensive.
With all that said, how do you know which loan offer is the best for opening a spa? If you have problems with cash flow, then a line of credit or merchant cash advance is ideal. However, if you want to open another spa or upgrade your equipment, then you can get a real estate or equipment loan.