Finimpact

Best Beauty Salon Loans

Whether you are running an established nail salon or just dreaming of starting your own beauty company, your business will need money - to rent out the space, to purchase materials, and to pay employees.

The Best Beauty Salon Loans for 2022
Independent writer and content strategist

As a beauty salon owner, you may need to find the right financing to grow your business, to address unexpected emergencies, or to expand your customer base. Luckily, a plethora of beauty salon loans are available on the market, with varying lending limits, terms and conditions, and application qualifications.

In this article, we are going to take a closer look at the financing options available to help you take your beauty salon to the next level.

Our Top Picks for Best Beauty Salon Loans

forafinancial
  • Ideal for plenty of industries
  • Approval not solely credit based
  • Early payoff discounts
Credit Score
Min. Credit Score 550+
Loan Amount
Loan Amount $5K-$750K
Loan Repayment
Loan Repayment 4-15 months
biz2credit review
  • Multiple loan types available
  • Funding in 48h
  • Soft credit pull
credit score
Min. Credit Score 600+
loan amount
Loan Amount $25K - $6M
loan repayment
Loan Repayment 12-36 months
bluevine
  • Quick and simple application
  • Competitive interest rates
  • Available to customers with relatively low credit scores
Credit Score
Min. Credit Score 600+
Loan Amount
Loan Amount $5K-$250K
loan repayment
Loan Repayment 6-12 months

How to Choose the Best Beauty Salon Loan?

Choosing the best beauty salon loan comes down to examining several factors. Based on these, our financial experts have compiled a list of the best lenders and their offerings.

  • Loan features. Make sure that the loan comes with desirable amounts, as well as acceptable terms and repayment options.
  • Application process. Research what information is required during the application process, and how fast you can expect to receive the funds. Will the lender conduct a hard or soft credit score check?
  • Interest rates and fees. Take a look at the interest rate range offered. Are there any additional types of charges, such as origination fees?
  • Qualification process. How strict are the qualification requirements? Think about your beauty salon’s annual revenue, business history, and minimum credit score requirements.
  • Customer support. Research whether the lender provides live customer service, offers multi-channel support, and provides any supplemental tools and information.
  • Online user reviews. Go through reviews on independent review websites, such as Trustpilot.
  • Perks and bonuses. Consider any additional offers like advanced technology, payment flexibility, and advertising transparency.

Best Beauty Salon Loans for 2022 - Full Overview

Below, you will find some of the best small business loans on the market that will help you to start or grow your beauty salon business.

1. Fora Financial - Best for Short-Term Business Loans

A short-term salon business loan from Fora Financial can be used to help you out with immediate expenses, such as buying equipment and beauty inventory, launching a new marketing campaign, or hiring staff. As an online lender, Fora Financial is known for its easy application process and rapid turnaround, with short-term business loan funding being disbursed as quickly as in 24 hours. Another great advantage of this form of financing is that it doesn’t have strict qualification criteria, with Fora Financial underwriters looking well beyond your credit score when reviewing your application.

Pros
Quick turnaround
Simple online application process
Helpful customer support
Lenient qualification requirements
Cons
Interest rates are slightly high
Additional fees might be applied

Fora Financial offers a fairly standard short-term business loan ranging from $5,000 to $500,000 in value, with terms anywhere between 4 and 15 months. While the factor interest rates of around 1.1 to 1.3 might be slightly higher than with some other products on the market, this loan is quite easy to qualify for. As such, you must have a personal credit score of 500 or more, be in business for six months or more, and have an annual revenue of no less than $12,000.

Features

Loan Value

$5,000 - $500,000

Term Length

4-15 months

Repayment Period

Monthly

Origination Fee

Up to 2.5% plus borrowing fee of 10% - 30% of the loan total

Interest Rate

Factor 1.1 - 1.3

Minimum Credit Score

500

Minimum Annual Revenue

$12,000

Minimum Time in Business

6 months


The Bottom Line

Despite the pricey interest rates and origination fees, Fora Financial is an excellent choice for short-term business loans if you are relatively new to the industry and need funding.

2. Biz2Credit - Best for Working Capital Loans

A working capital loan from Biz2Credit can be used to finance daily business operations, such as purchasing beauty supplies and paying salary to your employees. If you gather all of the required documentation in advance, you can receive the funds as quickly as in 24 hours.

Pros
Streamlined online application process
Rapid fund disbursement
Outstanding customer support
Cons
Strict eligibility criteria
Multiple documents are required
Additional fees may apply

With a Biz2Credit working capital loan, you can receive up to $2 million and choose between bi-monthly, weekly, or daily repayment periods. The interest rate and term length can vary, and the specifics will be discussed with the lender during the application process.
In order to qualify for the funding, your beauty salon must be in operation for at least 6 months, with a yearly revenue of $250,000 or more. In addition, your personal credit score must be no less than 575.

Features

Loan Value

$25,000 - $2 million

Term Length

Variable

Repayment Period

Daily, weekly, or bi-monthly

Origination Fee

1% - 6%

APR Range

Variable

Minimum Credit Score

575

Minimum Annual Revenue

$250,000

Minimum Time in Business

6 months


The Bottom Line

If you are looking for a working capital loan with a quick turn around, the offering from Biz2Credit is worth exploring with its varying term lengths and flexible repayment schedules.

Try Biz2Credit

3. BlueVine - Best for Business Lines of Credit

For a beauty salon owner, having access to a BlueVine business line of credit can prove useful - whether for daily spending or unforeseen expenses. The application process for a BlueVine line of credit is easy and takes no longer than a few minutes. The funding decision is fast as well, and, should you get approved, you can expect to receive the funds in a matter of hours. When considering this form of beauty salon financing, keep in mind that BlueVine loans aren’t available in some states, such as North and South Dakota. Make sure to review the complete list before applying.

Pros
Streamlined application process
Rapid fund disbursement
Attractive interest rates
Personal customer support
Cons
Not available in all states
High rates for low credit applicants
Services only available for B2B companies

With BlueVine, you can receive a business line of credit ranging between $5,000 and $250,000, with a term of either 6 or 12 months. However, it is a good idea to pay off the loan sooner to reduce the borrowing costs, as the interest rate can get quite expensive.
Because the line of credit is unsecured, it is a little more difficult to qualify for: your business must be in operation for at least 6 months with an annual revenue of $120,000 or more. In addition, your personal credit score must be no less than 600.

Features

Loan Value

$5,000 to $250,000

Term Length

6 or 12 months

Repayment Period

Weekly or monthly

Origination Fee

1.60% - 2.50% per draw

Interest Rate

0.30% - 1.50% per week (Flex6)

1.50 - 6.50% per month (Flex12)

Minimum Credit Score

600

Minimum Annual Revenue

$120,000

Minimum Time in Business

6 months


The Bottom Line

All in all, a BlueVine business line of credit is a great option to have on hand to help you out with daily expenses, - but remember to pay off the loan early to keep the borrowing cost in check.

Try BlueVine

4. Torro - Best for Start-Up Capital Loans

If you are new to the beauty industry, a start-up capital loan from Torro can help you get the momentum going. The loan can be used for virtually any purpose, from buying the salon chairs and hair wash stations, to building a website or launching a marketing campaign.

Pros
Can use the loan for any purpose
Streamlined application process
Fast funds disbursement
Cons
Potentially higher fees
Limited customer support

The start-up capital loan works in a similar fashion to a business line of credit: you have access to funds, which you can withdraw from during a set period of time. To qualify for the start-up loan of up to $100,000, you must be in business for less than 6 months and make at least $5,000 in monthly revenue.
Start-up capital loans are considered high-risk. Therefore, the interest rates tend to run high, and the lender prefers applicants with a FICO score of at least 680.

Features

Loan Value

Up to $100,000

Term Length

12 to 48 months

Repayment Period

Varies

Origination Fee

5%

Interest Rate

Up to 36%

Minimum Credit Score

680

Minimum Annual Revenue

$60,000

Minimum Time in Business

Under 6 months


The Bottom Line

If you are just starting out your beauty salon business, Torro start-up capital loan can provide the much-needed financial support. Keep in mind, however, that the loan comes with hefty interest and origination fees.

Try Torro

5. OnDeck - Best for Business Term Loans

As a beauty salon owner, you may be eligible to apply for a business term loan from OnDeck to cover new equipment purchases, a new salon location, your tax bill, staff costs, and more. With a business term loan from OnDeck, you can enjoy a simple application process, rapid fund disbursement, and very helpful customer service. This form of financing works best for previous OnDeck customers, as well as for beauty salon owners with good credit and those ready to pay off the loan early. This way, you will be able to take advantage of considerable savings on interest rates.

Pros
Discounts for repeat customers
Simple online application process
Quick funding decisions and disbursements
Personalized approach
Low credit score is welcome
Cons
Complicated repayment structure
Fees and interest rates not readily disclosed
Slow response times

Through OnDeck, you can apply for a business term loan with a limit between $5,000 and $250,000 and a repayment period anywhere between 3 and 18 months. This type of loan comes with a very high APR of up to 46%, so make sure you are prepared to pay off the loan early to reduce the total borrowing cost.

Features

Loan Value

$5,000 to $250,000

Term Length

3 to 18 months

Repayment Period

Daily, weekly, or monthly

Origination Fee

0% - 5%

Interest Rate

11.98% - 46.06% APR

Minimum Credit Score

600

Minimum Annual Revenue

$100,000

Minimum Time in Business

1 year


The Bottom Line

OnDeck is a great option if you are looking for a term loan to finance your beauty salon business. However, you need to be prepared for high interest rates if you carry the loan to full term.

Try OnDeck

6. Kabbage - Best for Business Lines of Credit

Kabbage is another online lender offering business lines of credit, which can be useful for either large one-time purchases or to cover ongoing daily expenses. It is worth noting that Kabbage was acquired by American Express. As such, you must be an American Express customer in order to apply for a loan from Kabbage.

Pros
Simple application process
Quick approval decisions
No minimum credit score requirements
Funds can be sent directly to PayPal account
Debit card issues to access loan funds
Accessible and helpful customer support
Cons
Only available to American Express clients
Expensive interest rates
Complicated fee structure
No prepayment incentive

Kabbage lines of credit come with a limit that can vary between $1,000 and $150,000 and a repayment term of either 6, 12, or 18 months. While the annual interest rate of up to 99% can seem extremely high, remember that lines of credit are meant to be paid off quickly. If you manage to pay off the loan early, you can reduce the interest costs considerably.
While Kabbage doesn’t have a minimum credit score requirement, it is worth noting that the lender conducts a hard credit score check when reviewing your application.

Features

Loan Value

$1,000 to $150,000

Term Length

6, 12, or 18 months

Repayment Period

Monthly

Origination Fee

None

Interest Rate

24% to 99% APR range

Minimum Credit Score

None

Minimum Annual Revenue

$50,000 annual revenue or $4,200 monthly revenue over the past three months

Minimum Time in Business

12 months


The Bottom Line

If you are already associated with American Express, a Kabbage line of credit is a great financing option to consider for your beauty salon - even if you have far from an ideal credit score.

Try Kabbage

7. Lendio - Best for Commercial Mortgages

As a business financing platform, Lendio can connect you with multiple lenders offering commercial mortgages to help fund a new space for your beauty salon business. Using the platform’s online dashboard, you will be able to apply for a mortgage in approximately 15 minutes and receive the funding as soon as in 24 hours. Should you have any questions, Lendio’s in-person customer service representatives will be happy to guide you through the application process.

Pros
Easy application through online dashboard
Broad product and lender selection
Competitive commercial mortgage offers
In-person customer service
Cons
Fees are not uniform across offers
Qualifications are no uniform across lenders