how to get an inventory loan for your medical spa
If you run a medical spa, you know how important inventory is to the success of your business. You need medical inventory to be able to provide your spa services. You also require inventory that you can sell to your customers. After all, some people might be too busy to get the medical spa treatment; therefore, they just buy your products and apply them themselves. Due to the importance of inventory for your medical spa business, you always need cash to restock. But what happens when the sales are not performing, you can’t close down your business and disappoint your clientele. In such a case, you need an inventory loan. If it’s your first time considering this option, you can use the following tips:
How to Get an Inventory Loan
1. Determine the Exact Use of the Loan
Before you apply for an inventory loan, you need to decide what type of inventory the money shall purchase. For example, you might be planning to reward your most loyal and long-term customers with gifts, and you’re short of cash. For such a scenario, you can take an inventory loan to purchase the gifts that you intend to surprise these customers with. Perhaps you are planning a promotion where you give customers medical spa treatment at a discounted price, but you don’t have money to increase the inventory. In this case, an inventory loan shall be helpful in purchasing the much needed extra supplies.
2. Know your Options
If you want an inventory loan, don’t apply for a regular loan because you won’t get it. This is because financial institutions can have a hard time selling your medical spa inventory. Since they don’t know where to start looking for customers, the don’t approve your loan. The best way to approach this situation is to take up a line of credit with the lender. That way, you can access cash whenever you need it. Alternatively, you can go for a merchant cash advance that takes a shorter time to process than most loans. All the merchant needs from you is a record of your card sales before they give you the cash advance for inventory purchase.
3. Manage your Inventory Well
Before you go out to seek an inventory loan, make sure that your store is in order. You need an efficient system that allows you to monitor inventory and get rid of weak points. After all, having too much inventory can have crippling effects on your business. For starters, it takes up space that could have been used to serve a client. Second, it eats into your cash flow because you used the money to purchase too much stuff. Having too little inventory can also be damaging because it may leave customers wanting more from you. However, once you have a proper inventory management system, you can use your money well and meet your business needs more efficiently. In addition, a lender is more likely to approve your inventory loan if you can show them that you have a proper inventory management system to get rid of inefficiencies.
4. Think Beyond Inventory
Even as you prepare to apply for an inventory loan, you should be thinking about other loan options. For example, you can use a working capital loan to do some renovations to your space or expand to new territories. Your availability to repay your inventory loan on time is what is going to determine your spa’s eligibility for another type of loan. Therefore, make sure that you take proper steps to clear the inventory loan on time.
If you want to get an inventory loan for your medical spa, you should consider the above factors to guide you with your application and improve your chances of an approval. You should also remember that there are other loan options that can do wonders for your spa; therefore, consider them even as you apply for the inventory loan.