Financing Hairdresser Furniture: Everything You Need to Know

What is an initiation fee?

An initiation fee is paid to set you up with the leasing/finance company. Some companies say they do not charge a fee, but they often simply have a higher residual value.

What is a monthly payment?

Your monthly payment is the amount you pay each month throughout the term of the agreement to finance your furniture.

What is a residual value, and why is it so important?

The residual value is the amount you still owe when your financing period ends. For example, if a company says you pay DKK 680 per month for 36 months, but the agreement states a residual value of DKK 10,000, you will still have to pay DKK 10,000 after the 36 months. That is why it is important to know exactly what the residual value is, so you do not get an unpleasant surprise. With us, the residual value is always just DKK 100. This gives you transparency, so you know you will not suddenly end up with a large final bill.

Financing, split payments and leasing: what is the difference?

Many hairdressers ask: “Is financing the same as leasing?” The answer is that there are some minor accounting and technical differences, but in everyday life you will experience them in much the same way. You get your furniture now and pay for it over time. Whether it is called financing, split payments or leasing, you should look at:

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

Is it dangerous to owe money?

For some people, owing money can feel scary. But the truth is that most salons borrow money from somewhere, either through the bank or via a finance company. The advantage of financing your furniture is that you:

1. Do not have to wait to open your dream salon until you have saved enough money.
2. Can start with the furniture you want and let your income help pay off the loan.

As long as you keep track of your monthly budget, owing money to a leasing/finance company is no more “dangerous” than owing money to the bank.

How we help you: Transparency from start to finish

We do everything we can to make financing simple and clear for you:

1. Set-up: DKK 400. This is the only initiation fee we charge.
2. Financing options from 12 to 48 months. We typically recommend 12–36 months, so you do not spend too long paying off your furniture.
3. Always a residual value of DKK 100. You do not have to worry about an overwhelming final payment.
4. Credit approval for everyone’s benefit. Our leasing partner checks that you (and your salon) can afford the monthly payment. This ensures that no one enters into an agreement that is difficult to manage.
5. No financing under DKK 6,000. We do not show financing prices under DKK 6,000, as it often does not pay off for you. We could ignore this, but we do not :)
6. Financing price per product. If the product costs more than DKK 6,000, you can see what each individual product costs per month directly on the product page.
7. Total financing price in the cart. If your cart is over DKK 6,000 excluding VAT, the total monthly amount is shown in the cart—no surprises.
8. You cannot activate/start financing directly in the webshop; you request it instead. We handle each case manually to ensure you get the best deal and a clear agreement without surprises.

Frequently asked questions

Can I end an agreement early?

Yes, absolutely. If you have, for example, 10 months remaining at DKK 680 per month, you pay DKK 6,800 plus the DKK 100 residual value to end the agreement. It is simple and without additional hidden fees.

Is there a minimum price for financing?

You can finance from DKK 6,000 excluding VAT, but it typically only really makes sense from DKK 10,000 and up, so the payment does not become too low in relation to the fees.

How long am I actually committed for?

You are committed for the term of the agreement, which is most often 36 months. However, you can choose anything between 12 and 48 months, depending on what best suits your finances.

What does “credit approval” mean?

It means that our leasing partner assesses whether you are creditworthy. They want to make sure that you can afford the agreed monthly payment. It benefits both you and us that the agreement is realistic. It would not be good for you to have an agreement you could not afford.

Are my furniture items insured?

If your own insurance does not cover financed furniture, the leasing company offers insurance. If your insurance already provides coverage, you can often opt out of additional insurance and save some money. It mainly covers fire and theft, so check your own insurance before signing.

Do the furniture items come with a warranty?

Yes! Just Add People always provides at least a 1-year warranty on technical and mechanical parts. If something breaks during the warranty period, we are ready to help.

Is there anything I cannot finance?

Yes, we do not finance consumables such as scissors, combs, cotton wool and shampoo, as these are considered ongoing operating costs.

In short

Financing is a safe and flexible way for you to get the furniture you dream of without having to pay a large amount all at once. The key to a good experience is transparency: Know your monthly payment, your term and your residual value. That way, you avoid an unpleasant surprise when the agreement ends.

Do you have questions, or would you like to hear about your specific options?
Feel free to contact us, and we will find a solution that suits you and your salon. Financing should be easy and worry-free, so you can focus on cutting, colouring and pampering your customers.

Photo: Andeby.dk