Finance your salon furniture: The complete guide

What is Residual Value – and Why is It So Important?

Residual value is the amount you still owe when your financing period ends. For example, if a company states that you pay €80 per month for 36 months, but the agreement includes a residual value of €10,000, you will still owe those €10,000 after 36 months. This is why it’s crucial to know exactly what the residual value is – so you don’t get an unpleasant surprise. 

Financing, Installment Plans, and Leasing – What’s the Difference?

Many hairdressers ask: "Is financing the same as leasing?" The answer is that there are small accounting differences, but in practice, they work the same way—you get your furniture now and pay for it over time. Regardless of whether it’s called financing, an installment plan, or leasing, you should always pay attention to:

• Monthly payment (how is it calculated?)
• Interest rates and fees (are there hidden costs?)
• Residual value (how much will you still owe at the end?)

Is It Risky to Owe Money?

For some, borrowing money can feel intimidating. But the truth is that most salons take out loans – whether from a bank or a financing company. The advantage of financing your furniture is that you:

• Don’t have to wait to open your dream salon until you’ve saved up.
• Can start with the furniture you really want and let your earnings help cover the payments.

As long as you manage your monthly budget, there’s no greater "risk" in financing through a leasing/financing company than through a bank.

In Short

Financing is a safe and flexible way to get the furniture you dream of – without making a large upfront payment. The secret to a good financing experience is transparency knowing your monthly payment, agreement length and residual value. That way, you won’t get any surprises when the agreement ends.