Why Smart Salon Owners Finance
LEBELLE MONEY LESSONS
Why Smart Salon Owners Finance
One bag of rice explains all of it. We use round numbers on purpose, so you can follow the math in your head.
1. Borrow strong dollars.
Say a big bag of rice costs $100, and you finance $10,000 of salon chairs and equipment. The bank hands you dollars worth 100 bags of rice, today. You take the chairs home and they start making money right away.
2. Pay back weak dollars.
Dollars get weaker every year. That same bag of rice costs more next year, and more the year after. But your payment never changes: $341.40 a month. In month 1, that payment is worth about 3.4 bags of rice. By month 36, the same $341.40 is worth only about 3 bags. Your payment shrank in real value, month after month, and the bank is the one holding the weaker dollars. The bank will need MORE dollars to buy the same rice. That is the bank's problem, not yours.
3. Your cash stays in your business.
Paying cash sends $10,000 out the door on day one. Financing keeps your strong dollars in your salon, working for you: staff, supplies, rent, and slow weeks. You pay the bank back slowly, in dollars that get weaker every month.
4. Your chairs are locked at today's price.
In 3 years, that same $10,000 of equipment costs about $11,576. But count it in rice and the price never moved: 100 bags today, 100 bags in 3 years. Only the dollars got weaker. Buy now and you lock the small dollar number.
THE EXAMPLE, COUNTED IN RICE: $10,000, 36 months
| Money the bank hands you today | $10,000 = 100 bags of rice |
| Your payment, every month for 36 months | $341.40 |
| What that payment is worth in rice, month 1 | about 3.4 bags |
| What that payment is worth in rice, month 36 | about 3 bags |
| Total interest on paper, over 3 years | $2,290.32 |
| Part of your payback that inflation quietly ate | about $880 |
| True cost of the interest, in today's dollars | about $1,410 |
| The same equipment if you wait 3 years | about $11,576 |
You borrowed strong dollars. You paid back weak ones.
The bank carries the inflation. You keep the chairs.
Want the exact numbers for your salon? Use your own price of rice and your own chair price. The picture comes out the same. One more thing, to be straight with you: salon equipment and financing interest are tax-deductible business costs. You get the equipment deduction whether you finance or pay cash, so ask your tax person what it is worth to you.
This month, we make it even better: 0% interest for 12 months on the chairs below. We pay the interest for you.
See the November chairs and monthly payments
Call or text 325-LEBELLE (325-532-3553)
Showroom inside Nail Mall, 5338 Buford Hwy NE, Doraville, GA · lebelle.us
Simple example with round numbers on purpose: $10,000 financed over 36 months at a real financing rate, rice at $100 a bag rising 5% a year. Your own numbers will differ. Financing with approved credit.