Like countless other industries, cosmetics has become significantly more competitive over the past decade or so. In addition to major department stores and chains, smaller cosmetic companies must compete with eCommerce giants and independent beauty entrepreneurs who seem to be popping up every day.
Demand has changed dramatically as well, largely thanks to the increasing availability of specialty or niche products. Customers who have skin allergies or only wish to use natural ingredients can now find exactly what they need. Then there’s the undeniable success of social media influencers, who release photos promoting certain products or video tutorials that show how to apply them. As you can see, staying up-to-date in the cosmetics industry is no easy feat. In an age when customers can seamlessly find all types of products online for competitive prices, cosmetics stores must continuously prove the value of an in-person experience.
And with so many new products gaining popularity, cosmetics stores must expand their inventory supply throughout the year. Managing inventory is extremely difficult; however, when you are trying to provide a balanced mix of industry staples and the subjects of the latest mass marketing campaigns. Niche products also tend to be more expensive and carry lower profit margins.
United Capital Source has facilitated Small Business Loans for Cosmetics Wholesalers and Retail Stores selling cosmetics for several years. As smaller boutique cosmetic stores compete with the major department stores such as SAKS and Macy’s and specialist stores including Sephora, and online giants like Amazon — having access to quick small business financing allows businesses to stock their shelves with new products that consumers see advertised. Contact us today for your FREE business funding consultation!
Nowadays, being an expert at cosmetics is basically meaningless if you aren’t a marketing expert. Small cosmetics stores must market themselves and their products, but ongoing campaigns can be costly and typically do not impact revenue for several months. United Capital Source’s lender network offers numerous small business loans tailored for long-term investments of this nature.
Maybe you want to hire a full-time, in-house team. Maybe it’d be more cost-effective to outsource a private digital marketing company. You might need more time and money to handle the advertising yourself, rather than concentrating solely on sales so you can pay regular business expenses. A highly-sensible business funding program for cosmetics is a Merchant Cash Advance because they typically perform a large debit and credit card transaction volume.
With a merchant cash advance, you only make significant payments when sales volume is on the rise. Making smaller payments up until this point does not increase the amount you owe. This makes a merchant cash advance particularly advantageous for marketing campaigns because you wouldn’t have to foot the majority of the repayment until the campaign is actually increasing revenue.
Merchant cash advances (a.k.a. “credit card factoring”) are also widely used to expand inventory and keep shelves stocked with popular products. Tight cash flow is not a mandatory requirement for approval, which can be granted at almost any time.
Retail-based UCS clients have also used business lines of credit to purchase extra inventory when products are selling at an unexpectedly high rate. Business lines of credit are most affordable for short-term investments, creating their own revenue stream shortly after funds are spent.
Since women own many cosmetics stores, we facilitate small business loans for women. For reasons beyond their control, female business owners tend to have limited working capital and less than stellar credit. These may be deal-breakers for banks but working through UCS. They do not have to stop women from accessing the same borrowing amounts and repayment terms as men. Apply now to see how much you qualify for!
|LOAN TYPES||MAX AMOUNTS||RATES||SPEED|
|Merchant Cash Advances||$5k – $1m||Starting at 1-6% p/mo||1-2 business days|
|SBA Loan||$50k-$5.5m||Starting at Prime + 2.75%||8-12 weeks|
|Business Term Loan||$10k to $5m||Starting at 1-4% p/mo||1-3 business days|
|Business Line of Credit||$1k to $1m||Starting at 1% p/mo||1-3 business days|
|Receivables/Invoice Financing||$10k-$10m||Starting at 1% p/mo||1-2 weeks|
|Equipment Financing||Up to $5m per piece||Starting at 3.5% (SBA)||3-10+ business days|
|Revenue Based Business Loans||$5K – $1m||Starting at 1-6% p/mo||1-2 business days|