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Best Loans For Beauty Salons – Hair Salons, Nail Salons & More

Important Notice: For SBA Paycheck Protection Loans consider Fundera

Loan Amounts $5,000 to $500,000
APR Range Term Loans: 7% – 30%
Startup Loans: 7.9% – 19.9%
Repayment Terms Term Loans: Up to 10 Years
SBA Loans: Up to 25 Years
Time to Funding Varies
Click “Check Rates” to apply to Fundera

If you own or are starting a salon, you’ll know that you’ve got to run a tight ship to turn a good profit and cover all the overheads. The beauty industry is growing year on year, so now is the perfect time to invest in your business – or yourself, and see your business boom.

Whether you’re starting from the ground up, buying an existing business, or looking to expand, you will need beauty salon financing to help you make your next big leap toward success.

So, what is actually available to you? In this article, we’ll guide you through the different business loans available to you so you can make the right choice.

The Different Types of Hair Salon Business Funding Loans

SBA Loans

The Small Business Administration doesn’t itself issue loans but works with lenders to provide loans for small businesses like yours. It sets the guidelines, and the government guarantees most of the capital involved, reducing the risk for the lenders. You can get SBA loans from just a few thousand to $5.5 million, are available at very competitive rates and terms. The downside of these loans is that they are notoriously difficult to get, and the time to funding can take weeks or even months. They also aren’t suitable for businesses that are not established.

Term Loans

Term loans are essentially the personal loan of the business world. These loans are given based on your personal or business credit score, business’s history, and other factors. These loans are usually offered with a fixed interest rate (though it’s sometimes variable) over a fixed term, such as 3 – 10 years (though can be shorter or longer). These loans are often faster and easier to get, but will come with a higher rate.

Equipment Loans 

Chairs, sinks, dryers, scissors, appointment software – a lot can go into running even a small salon. Specialist equipment loans can be the way to go if you’re buying a larger piece of equipment. These loans are secured by the piece of equipment your buying, so are a popular solution in the manufacturing and construction industries.

Lines of Credit

A business line of credit is a little like a credit card for your business. You agree to an amount with the lender, and then you can borrow as much as you like up to that limit, only paying interest on the amount drawn. As you pay it back so that credit becomes available again. It is perfect for a salon who may need to react quickly to changes and needs capital quickly and can be a massive help in evening out your cash flow and can be a prime source of hair salon business funding.

How Do You Qualify For Salon Business Funding? 

There are a few different factors that will be considered depending on the amount of money you’re looking to borrow and the type of beauty salon financing you apply for. The main one is…

Your Credit Score

For most business loans, your credit score is key. Every American can check their credit report for free once every 12 months. You can do it through AnnualCreditReport.com. Your personal credit score will nearly always be considered instead of, or in tandem with, your business’s credit score. If you’re looking to get funding in a few months’ time, look at what your score is and see if you can improve it before you actually come to apply.

Your Business Plan

Your business plan should be as accurate and realistic as possible. You need to understand where you are starting from, how you are going to grow, and how you are going to achieve that growth. If you started your business without one because you didn’t need funding or input from experts, now is the time to put one together – there are experts who can help you put your business plan together to give you the best chance at gaining your funding.

You Should Also Have to Hand:

  • Information about your peak season, if you have one.
  • The details (and proof of) your cash flow.
  • Your yearly revenue, particularly any trends you can prove over your years in business.
  • Your experience, both with this business and any others you’ve run.

What Can You Use Salon Loans On? 

In most cases, what you use your loan on is up to you once you have the money. Here are a few things you may choose to use your beauty salon financing for:

  • Supplies – either to buy your own, buy-to-sell, or to create your own branded products.
  • Buy new and better equipment
  • Marketing and Advertising
  • Payroll/Commissions – it’s not a good idea to borrow to cover payroll, but if you’re looking to bring in a new talented stylist, some additional cash may be the way to go.
  • Training, especially if there’s a hot new trend you need to be on top of, or to train your stylists and therapists in a new, more profitable area. 
  • Renovations – no one will expect top-class work from a salon that’s falling apart

Who Offers Loans for Beauty Salons?

So, which providers can you look to for loans for beauty salons? Here are some of our favorite lenders for hair salon business funding and beauty salon financing:

Best For SBA Loans: SmartBiz

SmartBiz has been in the business of providing loans for small businesses since 2008 and are SBA experts. They will help you navigate through the approval procedure and can offer SBA loans from $30,000 – $350,000 from the banks in their network. You may find an SBA loan is not your best option, in which case SmartBiz has other funding options, too.

Loan Amount: $30,000 – $350,000
APR Range: 9.7% – 11.04%
Time To Fund: Typically take several weeks to fund, but can fund as quickly as within seven days.
Loan Term: Maximum loan term is 10 years.
Origination Fee: 4.00%
How To Qualify: 675+ Personal credit score
$50,000+ Annual revenue
Great Option For: Borrowers with good credit
SBA loans
Funding real estate purchases
Refinancing debt
Credit Check? Soft credit check and hard pull
Co-Applicants Accepted? No cosigners
Direct Pay-Off To Creditors? No
Click “Check Rates” to apply to SmartBiz

Best For Term Loans

There are two lenders we recommend for term loans: 

BlueVine

BlueVine can help with term loans of up to $250,000 with rates as low as 4.8% and you may get the cash in just hours. Once you have the money, you pay it back via a fixed weekly amount. You’ll need a credit score of 600+, at least six months of trading with monthly revenue of $10,000, and three months’ bank statements.

Loan Amounts $5,000 to $250,000
APR Range 15% to 78%
Repayment Terms 6 or 12 months
Time to Funding As fast as 24 hours
Click “Check Rates” to apply to Blue Vine

» MORE: BlueVine Business Loan Review

OnDeck

OnDeck’s short term loans also promise fast funding, and they will lend between $5,000 to $500,000 over 3 – 36 months with daily or weekly repayments. They suggest the most popular uses of the loan are for startup costs, getting you through a seasonal cash flow shortfall, buying inventory when a particularly good offer comes along and emergency repairs to equipment.

Loan Amounts $5,000 to $500,000
APR Range As low as 9.99%
Repayment Terms Term loans up to 3 years
Time to Funding As fast as 1 day
Click “Check Rates” to apply to OnDeck

» MORE: OnDeck Business Loans Review

Best for Equipment Loans: Credibility Capital

This company offers short- and long-term loans, but you do need a good to excellent credit score and to have been in business for at least two years. Funding time is generally about 7 days. Do note they charge an upfront origination fee of 3%, so bear that in mind when comparing with other lenders.

» MORE: Credibility Capital Business Loans Review

Best for Lines of Credit

Lines of credit can be one of the best options for beauty salons. Here are three lenders we recommend:

BlueVine

For lines of credit up to $250,000, you should consider BlueVine. As with their term loans, they offer very fast approval times – just minutes – and low rates. Each draw is repaid monthly or weekly in fixed amounts, with the available credit automatically replenished.


Line Of Credit
Loan Amounts $5,000 to $250,000
APR Range 15% to 78%
Repayment Terms 6 or 12 months
Time to Funding As fast as 24 hours
Click “Check Rates” to apply to Blue Vine

OnDeck

OnDeck can arrange for lines of credit up to $100,000 with 12-month terms and weekly payments. There are no prepayment penalties, so you can clear your account at any time for no fee.

Loan Amounts $5,000 – $100,000
APR Range 11 % – 63%
Repayment Terms Repaid Weekly
Time to Funding As fast as 1 day
Click “Check Rates” to apply to OnDeck

Kabbage

This provider can organize lines of credit up to $250,000, and approval can be in as little as 10 minutes. Applying through Kabbage Funding gives a fast turnaround time to help your business quickly and efficiently.

Loan Amounts $2,000 to $250,000
APR Range 24% to 99%
Repayment Terms 6 to 12 months
Time to Funding A few minutes to several days
Click “Check Rates” to apply to Kabbage

What Are the Best Beauty Salon Startup Loans? 

An SBA Loan 7(a)

If you have strong personal credit and are not in a hurry, then an SBA loan has to be one of the best options for a loan to start up a salon. Offering low rates and long payback periods, an SBA loan is pretty much as good as it gets.

Their 7(a) loan is their primary program for small businesses, with loans of up to $5 million and terms 5-25 years, depending on what you need the loan for. The application process is quite long and complicated, and the eligibility requirement quite stringent, but don’t let that turn you off if you’re determined.

SBA Microloans

Designed for those without credit or trading histories in mind, as many startups often are, an SBA microloan might be the perfect loan for you. These loans are actually paid for by the SBA itself and issued through non-profit providers. If you have good credit and an all-important strong business plan, you may be eligible for a loan of up to $50,000, paid back over 0-6 years.

Loans are a necessity for nearly all small businesses, and here we have tried to untangle the threads of what is available for those of you in the salon and beauty business. Choose the best option(s) for you, your business and your circumstances, and remember to take the time to make this important decision wisely by comparing rates and overall cost. When you’re ready to start comparing loans, we’re here to help.

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