Your comprehensive guide for starting a hair salon business

Leasing Your Hair Salon's Furniture & Equipment

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For hair salon owners with limited start-up capital, leasing your hair salon’s furniture and equipment might be the best option available to your hair salon to get what it needs fast. Leasing furniture and equipment offers hair salon owners the option of maintaining much needed capital while also providing flexibility.

Although leasing furniture and equipment may seem like a great option to most hair salon owners, it isn't always the most lucrative option. To decide if leasing furniture and equipment is the most cost-effective decision for your hair salon, you should review your hair salon’s finances as well as the following advantages and disadvantages:

Advantages

Leasing your hair salon’s furniture and equipment can have multiple benefits for your hair salon, and most leasing benefits pertain to the flexibility leasing affords you. When you lease your hair salon’s furniture and equipment, you:

  • Are not required to make a large down payment or deposit.
  • Can obtain furniture and equipment without dramatically affecting your hair salon's cash flow.
    • Because you can almost always lease your hair salon’s furniture and equipment with no down payment, and without having to front the entire cost of the equipment out right, you are able to get the piece of furniture or equipment your hair salon needs without disrupting your cash flow.
  • Are able to obtain upgrades more easily.
    • For pieces of hair salon equipment that constantly need updating – such as POS systems – leasing may be a more cost-effective decision. Leasing allows you to upgrade your hair salon’s equipment as soon as your lease is up which allows your hair salon to have top of the line equipment in your hair salon at all times.

Disadvantages

Leasing furniture and equipment for your hair salon can sound like the money saving alternative to buying furniture or equipment, but that's not true. Leasing furniture or equipment may save a hair salon owner initial out-of-pocket expenses, but it has several costly disadvantages in the long run:

  • Overall costs
    • Leasing an item will always cost you more money in the long run. Because you will never actually achieve ownership of a leased piece of furniture or equipment, your hair salon will wind up paying more for a piece of furniture or equipment than if you were to purchase it.
  • Lack of ownership
    • Without being able to own your hair salon’s furniture or equipment it will never become an asset to your hair salon.
  • Contracts
    • Because of the terms of a lease, you will always have to pay for a piece of equipment even if your hair salon stops using it. Some leasing companies do allow you to break your lease, but it can be costly for your hair salon.

Ideally you should consider purchasing certain pieces of furniture and equipment for your hair salon while choosing to lease others that require frequent upgrades to remain current. If you choose to lease furniture and equipment for your hair salon, remember to review any contracts first to make sure that your rates can’t be raised and that you are able to get out of the lease for minimal charges if needed.

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