Your clients count on you for customized beauty services, and your salon deserves the same kind of personalized care when it comes to funding. Whether you’re adding chairs to keep up with demand, opening a second location, expanding into wellness, or turning up the volume on marketing, the right financing gives you the power to grow with confidence.
Where do you find business financing that fits the needs of your salon? The answer depends on how fast you need funds, how much you want to borrow, and how flexible your repayment terms need to be. Fortunately, the best beauty salon business loans tailor to service-based businesses like yours.
Let’s evaluate your funding options for salon growth and highlight the best places to get each financing product.
Small Business Administration (SBA) Loans
The SBA offers 7(a) and microloan programs with some of the lowest interest rates on the market and repayment terms of up to 10 years. If you’re planning on opening another salon or purchasing a commercial property, an SBA loan provides capital at a very manageable cost.
However, SBA loans have strict documentation requirements. You’ll need solid financials and a detailed business plan to qualify. These loans also have long processing times, so you may need to wait months to secure financing. Consider an SBA loan if you meet the requirements and are not in a rush.
Many different lenders partner with the SBA to help small business owners successfully apply for loans. Look to online providers and fintech companies that work with beauty salons in your region to secure funding from the Small Business Administration.
Online Business Term Loans
A business term loan, where you secure a lump sum and make monthly payments until the end of the repayment term, offers predictable financing. Lenders set the interest rate and payment schedule up front. You can apply for long, medium, or short-term options, depending on the timeline for your expansion.
Consider an online business term loan if you’re still building your financial track record or are on a tight schedule for your expansion. Fintech lenders evaluate your application based on revenue and cash flow rather than your personal credit score. And they move quickly. You can apply and secure funds fast with the best same-day business loan providers like Cardiff, Bluevine, Fundbox, and OnDeck.
Asset-Based Lending (ABL)
Asset-based lending can save money while funding new services at your spa or hiring more beauticians. By using your assets as collateral, you can secure lower borrowing rates and higher loan or credit amounts. It’s a great way to leverage your inventory, equipment, and real estate for growth.
Lenders who offer business term loans or lines of credit usually consider your assets during the application process. If you want to use accounts receivable or unusual collateral, consider companies like Celtic Capital Corporation or Fifth Third Bank, which specialize in ABL products. If you are using more traditional assets, consider other online lending options as well. They may fund faster or provide more favorable terms.
Equipment Financing
Want to invest in new styling chairs, wash stations, massage tables, or laser hair removal machines? Rather than paying up front, you can spread the cost over the useful life of the equipment through a loan or lease. And because the financed items secure your financing, lenders typically offer lower rates.
Use your funding needs to guide your equipment financing search. Do you need to upgrade your point-of-sale (POS) system quickly? Online providers can often finance equipment for small businesses the same day you apply. Or maybe you’re looking at specialty tools for new services. A lender used to working with beauty salons will understand the value of the equipment and offer more reasonable terms.
Business Lines of Credit
A business line of credit is an excellent option when you have recurring expenses to expand your beauty parlor. You can draw from your approved credit limit when you need funds, repay only what you borrowed, and access the credit for the next cost.
Many lenders offer business lines of credit, though they usually require strong business and credit history. Smaller or less established salons are more likely to be approved if they work with lenders specializing in business lines of credit for small businesses.
Working Capital Loans
Sometimes growing your beauty salon is a smaller step forward, like boosting your inventory before the holiday season or funding a new social media campaign. Working capital loans provide flexible funding when you need cash for your daily operations and short-term goals.
Online working capital loan providers, like Credibly, Cardiff, Lendio, and Fora Financial, typically base approvals on monthly revenue and time in business. This approach allows small service businesses, like salons, to secure financing. You’re in a strong position to qualify if you’ve got consistent client flow and solid sales history.
Lenders often offer term loans, business lines of credit, or merchant cash advances as working capital options. Each product quickly funds your business and has short repayment periods, but it has slightly different financing terms. Talk with your lender about which option will best suit your spa’s growth.
Choosing the Right Loan for Your Salon’s Next Step
No one-size-fits-all funding solution exists, especially in a high-touch, client-focused business like beauty. Take time to match your loan type to your goals and the timeline you’re working with. Are you:
- Leasing or renovating?
- Buying new salon equipment or furniture?
- Hiring and training more stylists?
- Adding inventory for new services?
- Investing in a local marketing campaign?
If your growth is product-driven, you may want a line of credit. If it’s equipment-heavy, financing tied to your new tools could be a better fit. And if you’re planning a full buildout or second location, an SBA or long-term term loan may offer the most bang for your buck.
Knowing what you need funding for and how quickly you’ll see ROI will help you choose the loan and lender that fits your salon’s stage of growth.
Put the Right Capital Behind Your Creativity
You’ve built your beauty salon into something special, and expansion is a sign you’re doing things right. The best part? You don’t have to do it alone. With a clear growth plan, the right funding, and a reliable lender, you can upgrade your space, hire more stylists, launch new services, and build a beautiful future.