Loans for Beauty Salons | Get Financing and Funding

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Whether you already own a beauty salon or you’re considering opening one, you are going to need funding. Working capital will ensure that you can keep your business operating. Conversely, cash flow will allow you to get your dream off the ground and running. Everyone is familiar with the adage, “It takes money to make money.” But what are you supposed to do when you don’t have any to support your vision? That’s where we come in. Here at Seek Capital , we have helped secure hundreds of millions of dollars for people just like you. If you currently own a beauty salon and need to raise money to grow your business, a small business loan will be one of your best resources. The same is true if you’re ready to start your own beauty salon. A small business loan will allow you to pay your business expenses, take care of an emergency, or start a new marketing campaign to increase your client base. We invite you to contact us if you need a small business loan, as we can help to ensure that you get the best rates and terms. We’ve included some outside options for your consideration, as well. Just be aware that you are likely to pay more in the long run if you decide to go with an alternative business loan.

Equipment Purchasing

Beauty salons can benefit from many loan options, as they are needed to secure your business venture and keep your doors open. These loan options include:

  • Business acquisition loans
  • Commercial mortgages
  • Business credit cards
  • Business term loans
  • Short-term loans
  • Equipment loans
  • Lines of credit
  • SBA loans

Each financing option offers dynamic solutions for beauty salons. Below are some common scenarios where some of these loan options can work in your favor. Again, we encourage you to reach out to us so we can assist you in securing the right loan for your needs. That said, we feel it is important to share other options for the sake of your consideration. Beauty salons often struggle with their equipment, as it doesn’t take long for it to become outdated and in need of an upgrade. Of course, this comes at a cost – one that isn’t cheap. As such, you need to be sure that you’re ready to fork over a sizable sum of money. It isn’t uncommon for small businesses to lack the necessary funding to make these upgrades. That’s where financing your equipment can really come in handy. You won’t have to pay for your equipment outright, thereby saving you a considerable amount of money in the here and now.

Equipment Financing

Financing your beauty salon’s equipment is a simple enough concept. You get the money you need from a lender to help you purchase the equipment. In doing so, you can get the equipment that you need and put it to use right away. Since the lender is the one providing the funding, you don’t have to pay the full amount on the cost of the equipment. As such, you can pay back the loan by making affordable scheduled payments. Please keep in mind that equipment financing may only be used to purchase equipment for your business, such as stylist chairs, hairdryers, or a POS (Point-of-Sale) system. Your credit score will determine the rates, terms, applicable down payments, and loan amounts. The majority of lenders are looking for credit scores of 600 and up. However, some accept lower credit scores. If you are deemed a high-risk borrower, you may have to put more money down on your equipment or pay higher interest rates. Now that you know what you can expect from lenders, let’s look at one of the better alternative lending options for equipment financing. Lendio This is a loan matching service that works with a network of lenders. Lendio works to connect you with over 75 potential business lenders. One of the nice things about Lendio is that they give you several offers at a time, making it easy to narrow down the best lender for your needs. Since you can see which ones offer the best rates and terms, you’ll have a much easier time choosing. Aside from equipment financing for business owners, Lendio also offers term loans, lines of credit, SBA loans, and business credit cards. To qualify for Lendio’s equipment financing, you will need to have been in business for at least one year (12 months). Furthermore, your business has to make a minimum of $10,000 a month in revenue, and you need a credit score of at least 650. As far as what you can borrow, Lendio’s equipment loans go as high as $5 million, with interest rates starting at 7.5% for many qualified borrowers. Repayment terms are between one and five years. Your fees depend on the lender you are connected with, while collateral is typically whatever equipment is being financed.

Business Expansion

If you find that your business and client base is growing to the point that you need more space, it might be time to start thinking about business expansion. Whether you want to add on to your existing salon or purchase commercial real estate for a new location, business expansion means that you will need funding to cover these additional expenses. As with equipment financing, most business owners don’t have the out-of-pocket funding to cover expansion expenses. But even if you do, it isn’t always wise to tie up such a large amount of money. Fortunately, you don’t have to take on this burden alone. With an SBA (Small Business Administration) loan, you can effectively break down your large business expenses into manageable, small monthly payments.

SBA 7(a) Loans

While the Small Business Administration has several loan programs, it’s the 7(a) loan option that is the most popular. It comes with flexible repayment terms, high loan limits, and low-interest rates, making it a top choice for qualifying business owners. What’s more, you can use an SBA 7(a) loan for nearly any business purpose, and that includes business expansion. As such, you’ll be able to buy commercial real estate, update your existing salon, or fund other business expenses. You can get SBA 7(a) loans in amounts of up to $5 million. The repayment terms range between 10 and 25 years, with the latter typically reserved for commercial real estate purchases. The interest rates are set at the prime rate, and there’s a maximum of 4.75% that is based on your loan amount and its repayment terms. You usually have to be highly-qualified to secure an SBA 7(a) loan. As such, you need to have a credit score in the high 600s, and your credit report mustn’t have any collections, liens, recent bankruptcies, or foreclosures. Furthermore, you won’t be eligible if you have previously defaulted on a government loan. Lastly, your business must be based in the United States, be in an approved industry, and have been in operation for a minimum of two years. SmartBiz One of the biggest downsides to SBA loans is that they can take several months for borrowers to receive the funding they need. If you don’t have time to wait and need money now, SmartBiz may be your best bet. They offer SBA commercial real estate loans and use a simplified process that takes out much of the hassle of getting a loan. Loan amounts range from $500,000 to $5 million, with interest rates between 6.75% and 8%. Repayment terms are available for up to 25 years. If you require a working capital loan, you can borrow up to $350,000 over 10 years, with interest rates between 8% and 9%. Your current credit standing will make a big difference in the interest rates you ultimately end up paying. While SmartBiz is a viable loan option that speeds up what is typically a long and arduous process, you need to be aware that they charge you several fees for getting an SBA loan. These include referral fees, guarantee fees, packaging fees, and closing costs. Although you can typically get funding in about seven days, collateral may be required.


As you can see, you have plenty of options for securing a loan to fund your beauty salon. Just make sure that you thoroughly research each lender to ensure that you’re getting the best rates and terms. If you’re unsure of how to go about this, please contact us so we can help. In the meantime, we encourage you to check out our extensive articles section. There, you will find a wealth of helpful resources that discuss small businesses and other topics. You can learn how to improve your credit score, tips for starting your own business , how to grow your company, and much more. Sources

Did You Know?
We've funded over $400 million for small business owners since 2015