Skin care brands often pursue financing as a means of growth. With the beauty industry booming, we’re here to support your dream while improving the lives of your customers. Here’s what you should know about financing for skin care brands.
What are the common financing options available for skin care brands?
Skin care businesses can come in many forms. From online storefronts run out of one’s home to nationwide retail corporations. Here at Kickfurther we focus on small businesses so we will tailor our best advice to what we know and do best. Small businesses can encounter a unique set of challenges when it comes to financing, and for that matter, operations in general. As a small business owner you know how important creative solutions are. When it comes to inventory we have an innovative solution to make funding affordable. but you may need financing for other activities too.
Do you do more than skin care? Learn more about the umbrella of beauty business inventory financing. Plus, you can access the types of financing listed above as they are not exclusive to skin care businesses.
Benefits of financing for skin care brands
Skin care businesses boast relatively low cost of goods sold, creating opportunity to have a high ROI per unit. However, as with most CPG brands (consumer packaged goods) there’s a lag between sales and accounts receivable. The downstream impact of this is a cash flow battle. How do you keep up with operations and stocking inventory without dipping too low (or negative) on cash? How do you invest more in growth while keeping up with the current state? One way to accomplish this and more is to utilize financing. In a nutshell here are some high level benefits of financing for skin care brands.
- Invest more in marketing, packaging, and other activities that will grow your brand
- Increase staff so you can provide better customer service
- Stock more inventory to keep up with growing sales
- Perform more research and development to better meet the needs of consumers
- Expand your business
The common theme of all of these benefits is the opportunity to grow. You’re an expert at glowing skin, share that passion with the world and reflect the same glow on your business.
How do I determine the amount of financing needed for my skincare brand?
Determining how much financing needed can be a complicated metric, as nothing will likely ever seem like enough. The idea of more cash can inspire a whole revolution of ways to grow your business that you’ve only dreamed of becoming possible. With that being said, we recommend strategizing exactly how the funds will be used. From there it can be easier to define the appropriate amount. You should also consider how the funds are to be repaid as this can support what you can afford to borrow. When you think about how much money to borrow you want to think long-term and in growth mode, but you always want to ensure you don’t take on more than you can handle.
Can I obtain financing if my skin care brand is a startup or in the early stages?
Small businesses, particularly in the startup or infant stages, can struggle to obtain financing. Most lenders and even alternative sources will want skin care businesses to meet a set of minimum requirements. If you have established sales, which you may as a startup or new business, you can have a better chance at qualifying. At Kickfurther we work with skin care companies that have a minimum of $400,000 or more in trailing 12 months revenue. This does not mean you need to be in business for 12 months though, but rather we will review a 12 month snapshot – whatever that consists of. We consider net sales which we define as gross sales minus returns. fees, allowances and discounts.
Are there specific financing options available for eco-friendly or sustainable skincare brands?
A round of applause for skin care brands prioritizing the environment and health of humans. While some sources may be more enticed to lend to a brand with relatable values, you can access the same financing options as other skin care brands. Alternatively there may be grants available that focus on skin care brands that are eco-friendly and or sustainable.
How can I increase my chances of securing financing for my skincare brand?
To increase your chance of securing financing, work with the right partner. Before applying, invest the time into understanding the requirements you’ll need to meet to qualify. Preparing for financing is equally as important as choosing the right financing option.
What are the potential challenges or obstacles when trying to secure financing for a skincare brand?
There are two main potential challenges:
- Meeting the requirements
- The cost
At Kickfurther we aim to help you around both of these challenges for inventory financing. With our creative funding solution, you can say so long to the complicated traditional business loan application process and tap into that creative side of yours. Create an online profile that allows our community of backers to buy into your mission with you. In financing, there is a way for both parties to win. At Kickfurther, our funding solutions are up to 30% cheaper than comparable options.
Are there any alternative financing options specifically tailored for skin care brands?
Alternative financing options seem to be a lifeline for small businesses, including skin care brands. From crowdfunding to Kickstarter, you’ve probably heard of plenty alternatives. As a business owner though, you’re busy – we get it. There’s a lot to be aware of with alternative means of financing. If traditional methods of financing aren’t playing on your team, consider our alternative for inventory funding. It’s straightforward and designed by small business owners for small business owners. No double edged sword here.
Our value proposition is simple. . .
- No immediate repayments. You control repayment. Don’t pay until your product sells.
- Non-dilutive. Maintain equity in your business, we know how hard you worked for it. We are here to work with you, not against you.
- Not a debt. Because you have enough financial strain, this is not a loan.
- Upfront capital. Pay suppliers faster with upfront capital, there when you need it!
How Kickfurther can help
Kickfurther funds up to 100% of your inventory costs on flexible payment terms that you customize and control. With Kickfurther, you can fund your entire order(s) each time you need more inventory and put your existing capital to work growing your business without adding debt or giving up equity.
Why Kickfurther?
- No immediate repayments: You don’t pay back until your new inventory order begins selling. You set your repayment schedule based on what works best for your cash flow.
- Non-dilutive: Kickfurther doesn’t take equity in exchange for funding.
- Not a debt: Kickfurther is not a loan, so it does not put debt on your books. Debt financing options can sometimes further constrain your working capital and access to capital, or even lower your business’s valuation if you are looking at venture capital or a sale.
- Quick access: You need capital when your supplier payments are due. Kickfurther can fund your entire order(s) each time you need more inventory.
Kickfurther puts you in control of your business while delivering the costliest asset for most CPG brands. And by funding your largest expense (inventory), you can free up existing capital to grow your business wherever you need it – product development, advertising, adding headcount, etc.
