Tanning Bed Financing

August 16th, 2010

Tanning Bed Financing

As with any business getting financing to start a tanning salon is often a critical component for most new salon owners. While a few people are able to pay cash to open their business, majority of people look to financing companies to pay for all or some of the costs. The different costs that new salon owners incur include the legal fees associated with the establishment of the business, demographic studies, graphic work, interior build-out, and advertising costs. Usually the largest expense is the commercial tanning equipment. A salon that needs to finance tanning beds can look to several sources for the capital. One way is to go with a standard bank loan backed by collateral of some sort. Another very popular and usually easier route is too look at tanning bed manufactures as a financing option. Usually with a 20% down payment it is possible to get new equipment with a monthly payment plan just like a car payment. Majority of the plans are a fixed amount per month for a specific number of months. If buying multiple pieces of equipment you can usually get a discounted price on the tanning booths. Some manufactures will also sweeten the deal by including a certain amount of lotion or product for free. Although this seems like a great deal, it is important to note that the expense of these extra add-on’s is simply included in the price so you are simply getting what you are paying for.

Sun Capsule finances tanning booths in a different way. Instead of having a fixed payment each month they have initiated a program called FLEX financing that is basically a pay-per-use system where the salon owner must only pay when the equipment is used. The genius behind this plan is that the salon owner has the ability to profit from day one. Since Sun Capsule charges the salon owner only $4 per session anything charged above goes to the salon owner. This alleviates the cash flow problem that traditional tanning bed financing causes in the off-season when revenue is low. This revolutionary payment plan has helped thousands of salons who are afraid of taking on more debt. With jump-start plans that allow owners to begin paying on the booths several months after delivery it is a win-win situation for everyone.

Tanning Equipment Financing Tanning Bed Financing

Sun Capsule offers Tanning Equipment Financing

Before making a capital investment in your business there are a few factors to consider:

What is your current cash flow situation?
Can you afford to take on new debt?
Will you be able to service the new debt in the slow season?
Are you replacing another piece of equipment or looking to fill a void in your salon’s offerings?
Do you have a relationship with any manufactures that may lead to a more favorable offer?
What type of collateral can you put against your new debt?
How big of a down payment can you afford? Usually the more you put down the lower your interest rate and monthly payments will be.
What is the best time of year for you to take on the required construction nuisances that new equipment can cost?
What are the total costs of the new tanning bed financing including your electrician costs, installation, freight, and interior construction modifications?

Once you have a good answer for all of these questions and are ready to make an investment in your business make sure to shop around to get the best deal you possibly can.

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