COSMETICS & BEAUTY
INVENTORY FINANCE

Brands can access funding for their cosmetics and beauty products from marketplace participants. The marketplace allows brands to access private funding at costs that can improve with each use. Your funding for your purchase order goes directly to your manufacturer for production of goods and you make no payments until you receive and begin selling new inventory.

• Kickfurther works with cosmetic and beauty brands once they’ve reached at least $150,000 or more in trailing 12 months revenue. You do not need to be in business for 12 months, or have revenue in 12 consecutive months, but we review a snapshot of revenue across a period up to 12 months.
• As we process your application, we review your account statements to calculate your trailing 12 months of revenue. Kickfurther will consider your revenue to be your net sales, which we define as your business’s gross sales minus its returns, fees, allowances, and discounts.

• Launching a Co-Op for your cosmetics and beauty brand involves 3 key steps:
  • Create a basic profile including information about your business and product line. Once you’ve done this you can go live with an “upcoming Co-Op” profile that users can choose to follow to hear when your Co-Op launches.
  • Determine your Co-Op structure using the Kickfurther calculator to determine costs, earnings, and timeline.
  • Verify your Credibility Metrics with the Kickfurther team and finalize your Co-Op profile.

Once approved and the deal goes live, most deals fund within a day (often within minutes to hours), so you’ll never miss another growth opportunity

Among other types of businesses, cosmetic and beauty loans can be used to finance salons, massage establishments, and day spas. Created with growing businesses in mind, cosmetic and beauty financing is catered to the special needs of running a personal care service operation.

Several different types of beauty financing can allow you to purchase new equipment, tackle renovations, hire new employees, finance inventory, and so much more. From traditional bank loans to inventory financing, there are a variety of loan types and lenders that can assist with cosmetic and beauty financing.

Makeup business financing will work differently depending on the type of loan you are getting, but generally, a few basic principles will apply.
First, you will need to qualify for the loan. Approval may be based on your business history and credit score, but in other cases, you may be able to use inventory as collateral.

Once the loan is approved, it will need to be paid back with interest on a daily, weekly, or monthly basis. Some may have more flexible payback terms than others.

Whether you are applying for a loan or funding, you will typically need to submit information and financials about your business. Each bank and platform will have it’s own protocol. It can be helpful to familiarize yourself with them before applying so that you can be more prepared.

As in other industries, financing can create more opportunities for businesses. Coming up with a lump sum of cash or depleting savings is not always ideal. When paying cash isn’t an option, your dreams should not come to a halt. Financing can provide the funds you need to bring your vision to life. As a business owner, you’ll need to make sure finances are managed properly though, otherwise loans can get you in trouble. With the recent Pandemic, there was a huge need for financing to help cosmetic and beauty businesses keep their doors open. While sadly, some did not survive, the ones that did are even stronger for it. Whether it’s an emergency such as the Pandemic or simply the aspiration to grow your business, financing can be utilized. Here are some common uses of financing for the cosmetic and beauty industry:

• Equipment
• Booth rental or office renovations
• Marketing efforts
• Education or certifications
• Technology systems
• Inventory
• Supplies
• Acquiring a business

There are many types of cosmetics businesses that may need financing. These include the following:

Makeup Manufacturers: These are companies that manufacture cosmetic products. The products are usually sold to other businesses, but they may also be sold directly to customers.

Makeup Retail Stores: Make up retail stores sell cosmetics products directly to customers. They may specialize in one brand or product, or they may sell various brands and products. They may do their business online, or they may have brick and mortar locations.

Cosmetic Procedures: There are also companies that offer cosmetic procedures including peels, Botox, plastic surgery and more.

Skincare Companies: With the demand for all natural products on the rise, skin care companies are always trying to innovate new formulas and produce successful products. They often need to stock plenty of inventory so they may need funding.

Hair Care Companies: We all want silky smooth and long hair. Our medicine cabinets are almost always overflowing with hair care products we tried. Since everyone’s hair is different there is a demand for a variety of hair care products. Everything from shampoos and conditioners to hair straightening products can get funding.

Below we will feature some cosmetic businesses that received the funding they needed through Kickfurther.

Whether you are a supplier for cosmetic and beauty stores or you own a beauty or cosmetic store, you may need to consider financing. Of course borrowing money means taking on debt. But, if you are able to leverage the debt and use it to increase profits, it can be deemed good debt. Here are some of the pros and cons of beauty and cosmetic financing.

Pros:

• Grow your business
• Improve cash flow
• Eliminate late payments
• Stock more inventory
• Invest in systems that can benefit your business
• Upgrade equipment
• Improve customer satisfaction

Cons:

• Committing to a monthly payment or repayment term
• Taking on debt
• Interest and other fees
• Time investment to apply and manage financing

The amount it costs to start a cosmetic business varies depending on the type of makeup business you are starting and how big you want it to be. Here are some expenses to consider:

• Product Development: Approximately $5000 for single product
• Business Expenses: At least $2000
• Marketing and Sales: $500 and up

While it can initially be difficult to obtain a beauty startup loan, there are many types of alternative funding for cosmetic and beauty establishments. The SBA offers loans meant for this purpose, and you can also think outside of the box. Many have had success using things like grants and crowdfunding initiatives. As an online business or new business, you may have a harder time securing affordable funding. That us until you discover, Kickfurther. Kickfurther is the world’s first online inventory funding platform that enables companies to access funds that they are unable to acquire through traditional sources. At the end of each of your sales periods, you’ll submit sales reports to Kickfurther. You will only be required to pay for what you’ve sold during the period you are reporting on. Kickfurther can help you secure inventory funding for up to 30% cheaper than other options.

When you hear the term beauty industry, there are three main categories of services that are covered: hair, skin and nails. However, within these categories there are many different types of treatments and services that businesses can provide.

The beauty industry covers a wide variety of services, including:

• Waxing and threading
• Permanent & semi-permanent makeup
• Manicures and pedicures
• Skin care and injectables
• Spa and salon services
• Hair cutting and styling
• Tanning
• Massages

Many businesses in the beauty industry choose to diversify their services in order to earn profits from multiple income streams. For example, a nail salon may choose to offer merchandise for sale or a massage parlor may decide to add a few tanning beds.

This is not only a smart business idea but offers greater convenience for your clients.

Credit score requirements can vary depending on the lender. In most cases you will need a good credit score to qualify for cosmetic business financing. Most lenders will take several factors into consideration to determine if you qualify for financing.

For starters, you’ll probably need to submit an application to the lender or company of your choice. Prior to submitting the application you will need to decide what type of financing you want to apply for and who to apply with. Once you know who you wish to apply with, you should find out what they require. In most cases, you will need to provide financial statements, a business plan, and authorize a credit check. For inventory financing, you will probably need to provide sales reports.

#1. Jersey Shore Cosmetics, LLC

Jersey Shore Cosmetics specializes in cosmetic and skincare products that are safe and free of petrochemicals, parabens, and toxins. Their products are made of essential oils, natural fragrances, plants and botanicals, and no artificial colors. They never test on animals and always use recyclable packaging. Their product line features Jersey Kids All Natural Sunscreen, a top-rated sunscreen for kids that is baby safe. It also features All Natural Alcohol-free Bug Spray. During a recent co-op with Kickfurther for Jersey Shore Spa Moisture Rich Hydrating Balms they raised $51,813.47 in 8.2 months representing a 19.21% annualized co-op profit margin.

#2. 365 Sun LLC

365 Sun specializes in hair straightening and hair repair treatments. Currently, their products are offered in the USA and used on a personal and professional level. While COVID may have presented a little speedbump for this company, Kickfurther helped them get back on their feet.They have raised $44,594 in 5.8 months.

#3. LuMesh Cosmetics Inc.

LuMesh Cosmetics is focused on providing an assortment of multifunctional products and techniques that can help women worldwide look flawless in 5 minutes or less. Their product line features Ultra Volumizing and Lengthening Mascara, a primer and mascara all in 1. This product is vegan, paraben free, sulfate free, animal cruelty free, and phtalates free. It can deliver amazing results that are long-lasting, even after the product is off your skin. Kickfurther has helped LuMesh Cosmetics raise $10,546.63 in 7 months representing a 32.22 annualized co-op profit margin.

#4. Beauty For Real

Beauty For Real produces clean, cruelty-free formula hi-def mascara that is packaged to go along on all of lifes adventures, planned or unplanned. With a target for customer attitude, not age, Beauty For Real appeals to novice and beauty experts. Beauty For Real’s hi-def mascara can be purchased directly through their site or Amazon. As a result of its recent feature in Ipsy’s Glam Bag, the product sold out immediately and reached 10x sales from previous months. In their most recent co-op with Kickfurther, Beauty For Real raised $32,425.

#5. Alleyoop

Alleyoop is an award-winning beauty brand best known for its easy to use and compact makeup products. Can you imagine carrying 3 shades of blush in one small compact? Alleyoop can. Alleyoop is differentiates by using 51.9% less raw materials to manufacture products compared to traditional products in the markets.  The company started as a power couple and has grown to a team of 20 and counting. In their most recent co-op with Kickfurther, Alleyoop raised $199,999.80.