You’ve already invested time, blood, sweat and tears opening your business and making it profitable. Now, your growth and expansion depend on something else: capital. Small business funding options, like Vagaro Capital, provide a flexible, user-friendly and expedient funding solution you may not have thought of. They are a great alternative to small business loans and bank loans, with their lengthy approval processes, high interest rates and rigid payment terms.
By partnering with embedded finance platform, Liberis, Vagaro Capital can make $1,000–$300,000 of funding available in at least two business days* That kind of money makes remodeling and expansion a reality, puts brand-new equipment within reach, enables you to advance your education & training, and so much more. These are funds you put toward your growth and success that you pay back as you grow and succeed.
Let’s examine the benefits of this relatively new funding option in detail, how it works, and how it differs from other funding options.
(In June 2023, the percent of approved customers funded in 48 business hours was 75%.)
1. Quick Application & Fast Financing
Qualifying for different business loans is a process contingent on such factors as credit scores and annual revenue, and it can take quite a while to get approved.
In fact, the combined application and approval process for certain business loan types—the SBA (Small Business Association) loan, for example—can take anywhere from 30–90 days1. That can feel like an eternity to goal-driven self-starters who want to jump on the next phase of their business’ growth—or simply have issues they need to fix now.
Vagaro Capital’s application takes minutes to complete, and the approval process does not require a hard credit pull. Once approved, businesses can have access to their funds in two business days, a period that is in line with the most competitive bank loans out there, post-approval2.
2. Simple Approval
Flexible small business funding utilizing Vagaro Capital, Vagaro businesses don’t have to jump through a series of approval hoops. The perquisites for Vagaro Capital are simple:
- Have a Vagaro Merchant Account
- Show a minimum of 4 months of payment/Card Processing
- A minimum of $1K in Credit Card Sales
- 10+ Card Transactions per month
- Get Preapproved for a cash advance
Any Vagaro customer with a Merchant account can apply for funding, including team members. How much funding you are eligible for depends on gross credit card volume. Think of it this way: the more you hustle and do what you do best, the more you’ll qualify for.
Check out this helpful support article for an in-depth rundown of Vagaro Capital’s application process, funding offers and payment/s process.
3. Flexible Payment
Businesses determine how to pay for their funding during the application process. This is based on an agreed upon credit card percentage of each transaction—which is dependent upon the amount of funding they’ve been approved for.
You choose a fixed fee that is comfortable and pay as you make money. Payments are automated as a small percentage of each transaction.
Vagaro Capital gives you the flexibility to choose from the following payment speeds:
- Quick: Pay faster with a higher percentage of your sales taken out & lower fixed fee.
- Medium: Pay at a medium speed with a mid-tier percentage of your sales taken out & mid-tier fixed fee.
- Slow: Take your time paying with a lower percentage of your sales taken out & higher fixed fee.
A fixed fee, based on your advance amount and payment speed, is used in place of interest that can compound over time. Let’s simplify this even further: If you select 10% as your payment speed, and a client paid $100 dollars for a service, then $10 goes toward paying your funding and $90 goes to your business. Simple.
That means that there’s no need to sweat a slow week or month here and there. You pay less at the slower times, and more at the busier times.
Flexibility like this sets small business funding apart from bank loans and small business loans, which involve fixed or variable interest rates, fixed amounts and rigid timelines. Based on your needs, goals, and financial circumstances, Vagaro Capital may be a better funding solution for your business.
4. Fast & Easy Renewal
The first round of capital doesn’t have to be the last. In many cases, be it remodeling, construction renewal or expansion of any kind, circumstances require access to more financial resources than originally expected. That’s why eligible Vagaro businesses can be approved for an additional cash advance if needed.
Renewal follows the same basic process as before. After additional funding has been approved, a business’s Capital Report automatically updates in their Vagaro account within 2 business days. The amount of funding a business is approved for is added to the remaining balance from before, reflecting the new 'Total To Pay' amount. The percentage of sales required to make payments also updates based on the new amount of funding, while the 'Paid So Far' field resets back to $0.
EXP: If an original Capital Report shows a remaining balance of $28,000, and a business is approved for an additional $50,000, the new 'Remaining Balance' will show $78,000. Simple."
5. Automated & All in One Place
As alluded to above, payments are withdrawn from your bank account until your funding is paid back in full. In other words, you don’t have to think about it.
The general overview of your Vagaro Capital funding is viewable within Vagaro’s Reports feature. This is the same place you’d find sales, revenue and attendance reports, among others. It’s where you view the overall health and productivity of your business. It's exactly where it belongs, and accessible right from the palm of your hand through the Vagaro Pro App. Forget memorizing multiple passwords to multiple loan accounts on different websites.
6. Customized Capital for Your Needs
With Vagaro Capital, you can be approved for anywhere from $1,000–$300,000 based on your credit card sales. That is a broad range of funding at your fingertips that can cover a variety of things.
Let's look at a few, and why you should consider them:
Remodeling & Upgrades
Revitalizing your business is going to take more than a few coats of paint (though, an accent wall may look nice). Are your stations rundown? Your floors outdated and showing their age? Is your space just too small?
If you notice these things, so do your customers. The longer you wait to make change, the more it will cost you in construction and improvements to catch up to your competition later.
Maybe you just want to breathe new life into your business with new light fixtures and modern furniture for your reception area. Perhaps add more square footage? It is difficult to compute the exact cost, but the average renovation/remodeling cost for small businesses can be roughly $50–$300 & up, per square foot, depending on a variety of factors:
- Building materials & labor
- Building location
- Building use
- Building codes
Even small remodeling or renovation projects can carry a hefty price tag and will take some serious budgeting—and funding. But it’s worth it to improve the client experience, stay competitive, and offer more revenue-increasing services.
Salon Equipment Funding
The cost of professional equipment can vary significantly depending on the specific type of equipment, brand, quality and features.
In terms of salon equipment, manicure chairs may cost $300–$400. Salon chairs can cost $700–$800 or more, while a single backwash unit can also cost up to $800. A single hair processor may cost several thousand dollars. But think about what just a few more clients at a time can do for your salon’s revenue, especially in the U.S., where women have quite the monthly salon budget3.
Fitness Equipment Funding
Even small gyms and boutique fitness centers spend—or, more likely, borrow—many thousands of dollars for equipment when opening their doors. A single Pilates Reformer can cost up to $15,000. Treadmills? They can be $3,000–$5,000. Weights are priced out by the pound or kilogram. They may cost about $1/lb. on the low end, but premium brands can cost upwards of $7.
Your insurance policy should cover the cost of repairing or replacing damaged gym equipment. But what if you simply need more industry-standard weights and machines for your members? More equipment means more exercise stations, or more class space for clients. This is an easy equation that ends in more revenue for you.
Maybe you don’t want to take out more loans for fitness equipment. You may still be paying off the old ones, which can take 10 years or more, based on your loan terms. Moreover, interest rates are likely a bit different today than when you took out equipment loans a few years ago...
Flexible small business funding, like Vagaro Capital, may be a better option in this case.
Spa Equipment Funding
Spas & med spas rely on a range of expensive equipment and technology to offer a variety of popular—often pricey—services.
For example, top-of-the-line electrolysis and HydraFacial machines can be $5,000 or more. However, electrolysis can cost over $1,000, depending on the area being serviced. HydraFacials are quite common, and usually begin at around $300—without added service upgrades. That’s impressive ROI (return on investment) potential.
Education & Training
Turn your attention to yourself for a moment. Investing in your own education and training doesn’t just add letters and fancy titles to your name. It adds layers of expertise to your repertoire, which adds layers to your service menu and opens you up to a wider range of clients.
Of course, you know already that this kind of education and training isn’t free. As with anything else, you must spend money to make money. But flexible small business funding will most certainly cover it.
Fitness Professionals: Personal trainers & gym owners can never have enough fitness certifications. The cost of added certification varies by level, but a Master Trainer certification can cost upwards of $2,0004, with specializations (strength training, training for different ability levels, etc.) costing between $400 & $500 each. Some organizations even charge several hundred dollars just to sit for their exam. Frustrating, but reality.
Adding to your education increases your clientele and adds new revenue streams for specialty seminars, workshops & bootcamps. And we don’t just mean at your gym or fitness studio; your newfound expertise may be in high demand elsewhere.
Beauty Professionals: A Master Hair Colorist certification ranges from several hundred dollars to $2,0005. Hair Extension certification can also cost several hundred dollars to over $1,000, depending on the certification body6. The admission cost for both is worth it, however. Adding hair coloring and hair extensions will significantly boost your income, as they are high-ticket services.
Halo hair extensions start at around $200. Bonded hair extensions (Keratin bond extensions), meanwhile, can cost a client up to $2,000 (think about the tip on that service, alone). Depending on the application, product used and reputation of the colorist, coloring can cost over $200. Imagine the added income a stylist can generate by adding coloring to their skillset.
Wellness Professionals: Spas & med spas employ a variety of people (physicians, registered nurses, etc.). Many of their most popular services are performed by Master Aestheticians (also called Medical Aestheticians). In the United States, the average tuition cost for a Master Esthetician/Aesthetician career program is over $13,0006. While steep, earning this licensure can significantly increase your scope of practice, opening the door to higher paying positions7 for the rest of your career.
There are several practical avenues toward funding your business’s expansion—and small business funding like Vagaro Capital is a great one you may not have thought of. It’s flexible, fast and tailor-made for any direction you want to take your business in. It lets you seize your opportunity and build toward success now.
Vagaro Capital opens doors to many possibilities—but it’s just one way. Imagine what more you could do with card processing, accounting integrations, robust reporting and Vagaro Pay Later, which helps you sell more high-ticket services, packages & memberships. Sign up for your FREE 30-Day Vagaro trial and start driving your business’s growth today.
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