What are the typical terms and repayment schedules for these loans?

Here are some of the typical terms and repayment schedules for small business loans that a beauty salon can avail:

• Loan Amount: Loan sizes will vary based on the borrower's eligibility and financing needs.
• Interest Rates: Interest rates are generally determined based on prevailing market rates, the lender's policies, and the applicant's credit profile.
• Tenure: Repayment durations often range from 1 year to 5 years or more for longer-term investments. Short-term working capital loans may have shorter tenures.
• Repayment: Monthly instalment payments are commonly offered. Some loan providers may provide flexible options aligned with seasonal revenue patterns.
• Collateral: Financial institutions may secure loans against business assets where applicable.
• Fees: Processing fees, legal charges, and valuation fees may apply as per the lender's policies.
• Prepayment: Early repayment may be allowed by some loan providers, but prepayment penalties may sometimes apply.
• Moratorium: A few months of principal repayment holiday could be offered for longer-tenure loans. Interest is still payable during moratorium periods.

Before committing to any borrowing program, it is highly advisable to thoroughly review all proposed costs, loan terms, repayment schedules, and cash flows. Seeking guidance from financial experts can help make an informed financing decision suited to the salon business.