Salons & Beauty
Salon Business Loans
Salons, spas and barbershops fund chairs and equipment, renovations, and the cost of adding stylists. Steady card revenue supports revenue-based approval, typically without a strong credit score.
For salons & beauty
What it pays for
- Chairs, stations and treatment equipment
- Renovations and relocations
- Adding stylists or treatment rooms
- Product inventory
- Slow-month cash flow
- Won't affect your credit
- Free, no obligation
- Up to $500K
Why the bank said no
It is usually the same reason a lender says yes.
Salons are small, leased and asset-light, so banks decline on size and collateral. Steady card revenue from repeat clients is exactly what a revenue-based lender underwrites against.
Why do banks turn down salons for loans? →Funding options
Funding options for salons & beauty.
The right product depends on what the money is for. One application here goes to the lenders in our network that fund salons & beauty businesses in your state; they decide, typically within 24 hours, and funds can land in as little as 72 hours.
| What you need it for | What usually fits | Why |
|---|---|---|
| Chairs, stations and treatment equipment | Equipment financing | The equipment secures it, at a lower price than an advance. |
| Renovations and relocations | Longer-term financing (a bank or SBA loan) | A build-out pays back over years; weigh how long before choosing. |
| Adding stylists or treatment rooms | Merchant cash advance | Underwritten on card revenue from repeat clients, and funds in days. |
| Product inventory | Merchant cash advance | Repaid from the product sales it stocks. |
| Slow-month cash flow | Merchant cash advance with a true holdback | A share of card sales, so a slow month means a smaller payment. |
How does each kind of funding work for salons & beauty?
Checked by Alex Makowski.
Two things decide how each product behaves in a trade: how the money comes in, and whether the need comes back. An advance repaid as a share of card sales falls in a slow week; one repaid by a fixed daily or weekly debit against deposits does not. Equipment secures its own financing, so it costs less than unsecured money. A line costs interest only on what is drawn, for the days it is drawn, and is the hardest of the four to open, usually needing a year or two of trading and clean statements. A working capital loan has fixed repayment, so size it to your slowest month.
Merchant Cash Advance for salons & beauty
Salons take nearly every payment by card, which makes an advance with a true holdback a natural fit for slow months and retail product. A salon that earns mainly from booth or chair rent has a different deposit pattern, often weekly rent paid by transfer, and a holdback on card sales may not reflect it. Make sure the offer is built on the revenue you actually have.
Working Capital Loans for salons & beauty
Covers a one-off such as hiring and training an assistant, an education course for a new color technique, or launching lash or brow services, when you would rather have a predictable payment than a share of card sales. Judge it against the quiet weeks after the holidays, not the run-up to them.
Equipment Financing for salons & beauty
Styling chairs, stations, shampoo units, and treatment equipment such as lasers or facial machines all finance as equipment. Med spa and laser equipment is expensive and dates quickly, so a lease with an upgrade path can beat a loan to own.
Business Line of Credit for salons & beauty
An established salon can open a line for slow weeks and back-bar or retail product orders, drawing before a distributor's minimum order and paying it down as clients buy. A newer salon, or one built on chair rent, usually starts with equipment financing or an advance and builds toward a line.
What your deposits support
Before you apply
What to have ready before you apply.
- Six months of business bank statements, plus card processing statements if you have them.
- How stylists are engaged — employed, commission or booth rent — since it determines what counts as salon revenue.
- Whether product sales settle into the same account.
FAQ
Salons & Beauty: questions owners ask.
- Can a salon get funding with bad credit?
- Commonly yes. Card revenue and deposit consistency carry far more weight than credit score with revenue-based lenders.
- How is salon equipment financed?
- Through equipment financing secured by the equipment, which usually means easier approval than unsecured funding.
- How much can a salon typically raise?
- Most offers land between 50% and 150% of a month's revenue, so a salon doing $30,000 a month generally sees $15,000 to $45,000.
Salons & Beauty funding by state
Guides
Guides on this
Why do banks turn down salons for loans?
Salons are small, leased and asset-light, so banks decline on size and on the absence of collateral. Steady card revenue from repeat clients is what a revenue-based funder underwrites instead — a predictable weekly pattern that supports funding in days rather than weeks.
You want to open a second salon. How much can you borrow against the first, and what kind of loan is right?
The first salon's bank statements are what you borrow against: revenue-based funders lend roughly half to one and a half times its monthly deposits, and a line of credit or term loan sized to that covers the lease deposit, buildout and the months before the new location fills its book. Chairs, stations, dryers and backbar equipment finance separately as equipment, cheaper and over years. Owners who did it report six to eight months to break even at the second site.
You own a nail salon and most customers pay cash. Why do you keep getting denied, and what works?
Because every funder underwrites bank deposits, and cash that never reached the bank does not exist to them. A salon doing $30,000 a month with $12,000 deposited is underwritten as a $12,000 salon. The fix is not a different lender; it is three to six months of depositing everything and running card payments through a terminal, after which the same salon qualifies for roughly two to three times the amount.
One application, every lender we work with
Find out what you qualify for before you need it.
Eleven questions, about two minutes. You see offers side by side and take one, or none.
- Won't affect your credit
- Free, no obligation
- Decisions usually inside 24 hours
- Up to $500K