Health Spa Loans - Alternative Business Funding

In recent times, the health and wellness industries have exploded. Around the world, it was thought that the anti-aging market was worth over $50 million back in 2018. Since then, it has continued its upward trend. While health spas were once reserved for those with the money and time, they have now opened up to all. Who doesn’t love a health spa weekend?

For business owners, this is great news. However, health spa funding is still an issue. Especially for those who can’t access a bank loan, alternative business funding lenders have taken on a new level of importance. If you’re currently looking for funding, you’re in the right place.

Health Industry Trends

Before we talk about funding, we first want to address some of the key trends in the niche at the moment. In other words, where are health spas spending their money?

Mobile Experience - In truth, technology has changed every single niche in the business world. With health and wellness centers, those who can invest in mobile apps and boast a presence across various channels are more likely to succeed. With this new strategy, spas are finding new ways to boost consumer interest (and, of course, profitability).

Younger Treatments - We said that spas were once reserved for those with money, but the general audience for spas was also an older one. Now, younger individuals are able to appreciate the importance of their health and wellbeing. For Millennials, they’re now starting families, and this is a generation that wants to be happy in life rather than just going through the motions. If market research is to be believed, this could see a rise in child treatments as well as young adults.

Over the last year alone, we’ve seen more spas offering yoga for children, meditation for children, and other classes for the little ones. While the parent gets a massage, the child enjoys yoga and the whole family goes home more relaxed.

Workplace Wellness - If you’ve ever done research on the Apple and Google offices, you’ll know the incredible measures they take for employee wellness. Although workplace wellness was a trend in the 1970s, it has finally taken hold on a wide scale in 2020. With spa trips and reward getaways, businesses are able to encourage a healthy and open workplace.

Wellness Center Business Funding

How do you take advantage of these trends? Well, the first step is securing the funding. Traditionally, banks have offered good terms and low rates to health spas, so this is great news. Since banks don’t take on much risk, the people who do qualify can enjoy positive terms. Unfortunately, not everybody will qualify for funding through this route. Therefore, South Florida Funding Group is here to help. We can assist with the following sources of finance.

SBA Loans - If you’ve established a reputation and enjoy good revenue, this is a brilliant option. There’s a common misconception that the loan comes from the Small Business Administration, but this isn’t the case. Instead, it comes from a traditional lender and the Small Business Administration secures a percentage of the loan. With this, you’re less of a risk to the lender just in case something goes wrong.

Depending on your needs, SBA loans come as lines of credit and as term loans. When looking for health spa funding, this should be high on the list of options.

Cash Advance - In our experience, this is one of the quickest routes to finance for those who are desperate and can repay within just a few months. As opposed to a loan, this one is an advance on all future sales. After the lender supplies the money, you will repay through a percentage of your card sales over the next period. Of course, there will be interest added on top.

Equipment Leasing and Financing - Next, alternative business funding lenders come in all different shapes and sizes. With this option, it helps to get the equipment you need as a spa. While leasing sees you borrow the equipment for a monthly fee, financing will allow you to purchase and own the equipment while repaying the fee over a set period of time. At the end of a lease term, you won’t own the equipment. At the end of the financing term, you will own the equipment.

Unsecured Line of Credit - The benefit of choosing this option is that your access to financing sticks around; rather than one loan amount, you can keep dipping into the funds whenever required. Draw on the credit when needed and then pay it back when you can. As long as you’re careful and don’t keep borrowing without being able to repay the amounts, this can be a reliable solution.

Secured and Unsecured Business Loans - Finally, these are business loans that come from online lenders rather than banks. With an unsecured business loan, the loan is earned using your own credit. Though there’s no physical collateral, some lenders will ask for a personal guarantee (which means you take responsibility should the business fail to pay). On the other hand, a secured loan is normally secured against the asset the money is used to buy.

Business Credit Card - For many owners, they forget that health spa funding is available immediately in their pockets. Even if you don’t have a business credit card already, many providers allow businesses to set one up with 0% APR as an introductory offer. Again, you need to be careful with this and only use what you can afford to repay within the 0% APR period. If you need short-term help and are confident in repaying quickly, try a business credit card.

Contact South Florida Funding Group

You’ve learned about all the different alternative business funding lenders, and we can help you at South Florida Funding Group. If you have concerns or questions, feel free to get in touch with one of our experts. We’d love to hear from you!