What will be reviewed?
The current payment and how it fits deposits, the share already repaid, balance trends and whether deposits have grown.
Beauty businesses can be seasonal, so funders look across several months, including slow ones like January.
Which path fits?
Renewal once a good share is repaid; second position when deposits carry two payments; payment relief, a type of reverse consolidation, when payments are too heavy.
Payment relief lowers the combined payment by extending the term and frees cash flow; it does not add new funds.
Bring the details with you: the current payoff, the daily or weekly payment, and the date the advance started. If the first advance paid for something that already produces revenue, such as a new treatment room or device, say so, because it explains why deposits rose. If the new request is for something different, like a relocation or a provider hire, a one-line description helps a funder see the plan.
Avoid taking several small advances from different sources. Each new payment reduces daily cash, and in a business with slow months like January, stacked payments can create a shortfall even when the year as a whole is profitable. One payment that fits the slow months is the safer structure.
How do I test affordability?
Use your slowest month’s deposits, subtract rent, payroll and product, and compare the remainder with combined payments.
If the margin is thin, focus on restructuring rather than adding a second payment.
| Option | Effect | Best when |
|---|---|---|
| Renewal | One payment, new funds | Much repaid |
| Second position | Two payments | Strong deposits |
| Payment relief | Lower payments | Payments too heavy |
Worked example: a spa renewing for a remodel
A day spa averaging $96,000 in monthly deposits has repaid most of an advance and wants $24,000 to refresh treatment rooms. Using an illustrative factor rate of 1.24, $24,000 would mean $29,760 repaid over roughly 6 months: 26 weekly payments of about $1,145.
That works out to about $4,960 a month, or 5.2% of the $96,000 this business deposits monthly, and the total cost of the money is $5,760. Testing one renewed payment against the slowest month shows whether the spa keeps a cushion.
For comparison, repaying the same $29,760 over 4 months would lift the monthly outlay to about $7,440, or 7.8% of deposits, so ask for both terms in writing; the shorter one frequently prices lower even though each payment is larger.
| Average monthly deposits | $96,000 |
|---|---|
| Amount funded | $24,000 |
| Factor rate (illustrative) | 1.24 |
| Total repaid | $29,760 |
| Cost of the funding | $5,760 |
| Term | about 6 months |
| Weekly payment (26 payments) | $1,145 |
| Payments as a share of deposits | 5.2% |
Who this fits
Usually a fit
- Salons and spas well into an advance
- Businesses with growing deposits
- Owners preferring one payment
When to pause
- Accounts with frequent negative days
- Agreements restricting new funding
- Very recent advances
What you’ll typically need
- Recent business bank statements
- Current advance agreement
- Business details
Frequently asked questions
Must I disclose current advances?
Yes; disclosure speeds review.
What is payment relief?
A restructure that lowers combined payments.
Is renewal always cheaper?
Compare total cost and payment.
What credit score do I need to fund a renewal or second position?
For a renewal or second position, owners with scores from 500 can be considered because recent deposits carry the most weight, and stronger credit usually earns a lower cost and a larger offer.
Advance open, new plan?
Apply and compare.
Updated October 6, 2026