Unforeseen emergencies can have a severe impact on your business. For example, many Northeastern spas were flooded or battered when Hurricane Sandy struck the coast during October 2012. Although not all emergencies are as detrimental as a Category 3 hurricane, all businesses suffer from unexpected situations at some point, such as broken equipment, building damage or even a sudden spike in clients that a spa is not prepared for.
The biggest problem spa owners face in these situations is having adequate cash flow to cover costs during emergencies. Many owners must look to outside funding options to help their businesses pull through tough times. Unfortunately, traditional bank loans are not often an option. Approximately seven out of 10 bank loan applications are rejected1 and, according to American Financial Solutions, the average loan of approximately $27,000 is generally considered a microloan, which is too costly for a bank to underwrite.
Below are three common emergencies spa owners face, and the recommended steps to take to move forward when tragedy strikes.