What is wellness center business financing?
Wellness center business financing involves procuring loans for your wellness business. The loans can go towards any business-related need including rent, staff, equipment, inventory and more. Some loans may have a specific intended use. You should determine exactly what you need funding for before applying. Funders and banks will want to see a plan.
How does wellness financing work?
The way wellness financing works will vary depending on the type of loan you are getting. It involves getting approved by the lender. The lender will want to know that you are a low risk and may look at your business history, your credit score, and other factors.
You may also qualify for an inventory loan which will use the inventory as collateral and won’t focus as much on your credit score and business history.
The loan will need to be paid back over time with interest. Interest amounts will vary, but generally, the lower your credit score is, and the more of a risk the lender is taking on your business, the higher the interest will be.
You will need to make payments regularly, on a daily, weekly, or monthly basis. The schedule will vary depending on the terms of the loan.
There are many different types of financing and funding that can work differently. However, they all have the same underlying concept, you borrow the money you need and you need to repay it.
What type of wellness centers need financing?
There are many types of wellness centers out there. Here are some types that may require wellness center business financing.
Health Spas: A health spa is a place a person can go to enjoy treatments like facials, massages, cold water therapy, steam therapy and more. This type of facility may need funding for staff, equipment, products, rent and renovations.
Alternative Medicine Centers: An alternative medicine center can provide herbal remedies alongside health spa treatments. They may need financing for goods sold, staff, marketing, renovations and more.
Nutrition: A nutrition center can get you on a healthy diet that helps you achieve the ultimate in wellness. They may need money to fund a physical space, staffing, equipment, and products sold if applicable.
CBD Based Businesses: CBD is all the rage in wellness and a CBD business is a great way to get in on the natural health boom. However, because the industry is relatively new, you may encounter extra expenses in licensing and bank processing equipment. It can also be difficult to find a loan because of the risky nature of the industry. However, there are lenders who specialize in CBD loans.
There really is no end to what you can do under the ‘wellness center’ umbrella. A variety of companies will qualify ranging from a gym to a rehab to a personal development facility. Most will require the typical financing needs which include renovations, staff, marketing, inventory, and equipment.
Most common reasons a wellness center seeks financing
Businesses can use wellness center business financing for a variety of reasons. These include the following:
Some wellness centers may sell products including herbal remedies, spa products, fitness equipment or more. Funding can be used to purchase the supplies and products they sell.
Investing in Technology
Any business that wants to be successful must invest in technology. In a wellness center, technology can come into play in the form of state-of-the-art spa equipment, a POS system, marketing tools and analytics and more.
Upgrades or Renovations
In addition to needing money to buy or rent a building, a wellness center may also require funding for upgrades or renovations. This will be useful for expansions, remodels, and repairs.
It’s vital to get the word out about your business so you can bring customers in. Companies will need to invest in physical marketing tools like business cards, and mailings, as well as virtual campaigns.
Pros and cons of wellness center business financing
Wellness center business financing comes with its share of pros and cons. Here are some to consider.
- Provides Funding for Your Business: Most business owners don’t have the funding to start their business. Financing provides them with the money they need to get it off the ground.
- Provides Business Support: In some instances, the institution that funded your loan may provide sound business advice.
- Requires Good Credit and Business History: Most lenders will want borrowers to have a good credit score and a successful business history before they are approved. This can be difficult for companies that are just starting out.
- Interest and fees: Loans must be paid back with interest and applicable fees. Interest rates can be quite high, especially if you are unable to show a good credit score and business history. The rates may increase even further if you are unable to make on time payments.
Types of wellness center business loans
There are several types of wellness center business loans a facility may qualify for. Here are a few to consider.
Inventory funding can be used to cover any supplies you will be selling through your company such as herbal remedies, spa products, fitness gear and more. It is a good option for new businesses as it looks at the inventory as collateral and does not consider credit scores or business history. It is typically used to purchase back stock that can be sold at a later date. Inventory loans must be paid back with interest. Keep reading to learn how to find affordable inventory funding.
A cash advance is similar to a credit card. The individual can withdraw a certain amount as needed as long as it is within the credit limits. The money is often used to cover emergency expenses like repairs and increased costs.
It is a convenient option for new businesses as it offers same day funding and flexible payment options. Credit and business history isn’t looked at closely, but high interest rates apply.
Line of Credit
A line of credit is a reserve of funds that businesses can withdraw from as needed. Interest is charged immediately on the amount that is withdrawn. It can be paid back right away or over time.
Like a cash advance, a line of credit comes in handy in an emergency. There is also a maximum limit set on the line of credit available.
How can my wellness center obtain business financing?
If you are looking for business financing for your wellness center, you must start by determining the loan that’s best for you. Next, compare lenders offering these types of loans. Once you find a lender you can work with, they will take you through the process and let you know what’s required for approval. If you need inventory funding, you should use Kickfurther. At Kickfurther you can get funded within minutes. Here’s how to get started:
- Create a free business account
- Complete the application online
- Review a potential deal with one of our account reps
- Get funded in minutes (funding times may vary)
How Kickfurther can help
Kickfurther funds up to 100% of your inventory costs on flexible payment terms that you customize and control. With Kickfurther, you can fund your entire order(s) each time you need more inventory and put your existing capital to work growing your business without adding debt or giving up equity.
No immediate repayments: You don’t pay back until your new inventory order begins selling. You set your repayment schedule based on what works best for your cash flow.
Non-dilutive: Kickfurther doesn’t take equity in exchange for funding.
Not a debt: Kickfurther is not a loan, so it does not put debt on your books. Debt financing options can sometimes further constrain your working capital and access to capital, or even lower your business’s valuation if you are looking at venture capital or a sale.
Quick access: You need capital when your supplier payments are due. Kickfurther can fund your entire order(s) each time you need more inventory.
Kickfurther puts you in control of your business while delivering the costliest asset for most CPG brands. And by funding your largest expense (inventory), you can free up existing capital to grow your business wherever you need it – product development, advertising, adding headcount, etc.
Kickfurther success stories: Featured wellness center co-ops
#1. Highline Wellness Inc.
Highline Wellness Inc. provides affordable, effective, and elevated CBD remedies that can improve your health and well being. Founded in 2019, Highline has created a wide range of health products including beauty + skincare essentials, recovery + relief offerings, and oil + gummies. Three childhood friends with a passion for wellness started Highline Wellness Inc., determined to find a solution to alleviate stress and anxiety we face in society. Through Kickfurther they have raised $277,790 with a total payout of $303,075.
#2. Sky Wellness
Sky Wellness makes, markets, and sells premium THC free, Broad Spectrum, Full Spectrum, and Isolate Hemp-derived CBD products. Their products are intended for people and animals. Sky Wellness products feature Sleep Softgels designed to boost restfulness. Sky Wellness is a holistic and wellness-driven CBD company that is committed to creating beneficial products that taste great and are effective too. Sky Wellness raised $142,600 during its second co-op through Kickfurther. The 2nd co-op was completed in 3.9 months representing a 18.38% annualized co-op profit margin. Their third co-op raised $41,775 and was completed in 2.8 months representing a 17.83% annualized co-op profit margin. They are now on their fourth co-op with $284,670 raised.
A wellness center can be a profitable business venture, but most entrepreneurs will need wellness business center financing to get it off the ground. Now that you know the options that are out there, you can decide which will work best for you. We wish you the best of luck in your endeavors.
Take a deep breath. . . affordable inventory funding is one click away!