We were alerted to this need also by business coach Caroline Nelson from Nelson Beauty Business. Caroline travels extensively through every State assisting salons, clinics and spas and was very aware of the financial difficulty that some salons were experiencing.
We investigated several financial companies who were providing financial services to consumers, but as you can imagine aesthetic procedures cannot be repossessed, so many companies considered our industry as a high risk. Furthermore, there were some companies that we decided to reject, as they did not meet with our criteria. Our concern was also to ensure that the companies we negotiated with were credible, had a long-term history and were sound in their business practices.
One company that had met our criteria was Retail Sales Development. RSD has a 50-year history of successful lending for the fashion and clothing industry. After in-depth negotiations we were successful in establishing a new product developed as a joint initiative with RSD exclusively for our members called Pay as you go Beauty. This strategic alliance is now available for all APAN members in NSW. Unfortunately, at this point this service is not available for businesses in other States. However, we are pursuing this matter and will inform you of any further developments.
The reason why RSD is insisting in working only with APAN members is because they are interested in dealing with serious and responsible businesses that can work with them to minimise any risk to them. This is because once the loan has been approved to the client the risk then transfers to their company. They therefore recognised that businesses that are linked to a credible industry body such as APAN have demonstrated a level of commitment to good professional and business practices.
HOW CAN Pay as you go Beauty BENEFIT MY BUSINESS?
For 50 years RSD has financed customer accounts in regional clothing stores and have gained the reputation as being the tool for businesses to increase sales and encourage customer loyalty.
In conjunction with the Aesthetics Practitioners Advisory Network (APAN) they now would like to offer the same service to the clients of NSW salons, spas and clinics.
Once approved by RSD your clients will enter into a 20-week contract with RSD. RSD will pay you the amount up front (less 10% commission) and from then on your client will make regular re-payments either direct to RSD through their bank account or through your salon.
From our estimation we believe that the average salon treatment pack ranges from $1,200 to $2,500. We have therefore requested that funding be made available to approved clients for up to $8,000. Unless a client can pay cash or by cheque the only other option is credit card. Traditionally, credit cards only have 4-5 weeks duration before the interest kicks in and this at high rates of 17-23 per cent.
Now there is another option that will ease that burden.
With this facility you will have the potential to make your clients' treatments and packages more affordable, while increasing your income and growing your business.
If you would like further information on Pay as you go Beauty contact APAN on 07 5593 0360 email: info@apanetwork.com.
