Updated on

Beauty Salon Loans: Best Options To Consider in 2023

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, purchase materials, and  pay employees.

The Best Beauty Salon Loans for 2022
Tetiana Sitiugina-Babiuk
Independent writer and content strategist

Reviewed by: Jen Hubley Luckwaldt, Content Writer and Editor


Many or all of the products featured here are from our partners who compensate us. This may affect which companies we write about and where the company appears on a page. However, any analyses, or reviews expressed in this article are those of the author’s alone, and have not been approved or endorsed by any partner.

Beauty salon owners may need to find the right financing to grow their business, to address unexpected emergencies, or to expand your customer base. There are many small business loans for beauty salons available on the market, with varying lending limits, terms and conditions, and application qualifications.

Our team of financial experts reviewed and found the best financing options available to help you take your beauty salon to the next level.

Beauty Salon Loans: Best Business Loan Options

Top Picks for Best Beauty Salon Loans

Choosing the best beauty salon loan comes down to examining several factors. In this review, we highlight the rates, fees and terms of each lender and explain what makes them a good option. We also share potential downsides of each lender, and provide a rating methodology you can use to select the best option for your needs.


Beauty Salon Loans: Full Overview of The Best Options

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.

Best Overall
Lendzi logo

Lendzi - Best for Businesses With High Revenue

Factor Rate
Starting at 1.10
Loan Amounts
Up to $4 million
Min. Annual Revenue
Key Features
  • Borrow up to $4 million in working capital
  • Min. credit score: at least 500
  • Min. time in business: 6 months
  • Equipment financing up to $2 million
  • Business line of credit up to $250,000
  • See your options without hurting your credit
  • Flexible terms: 3 to 15 months
  • Excellent customer reviews on independent review sites
  • Get funding in as little as 24 hours
Pros & Cons
  • Simple online application
  • Applying will not affect credit score
  • Bad credit accepted
  • Excellent customer ratings
  • Fast funding times
  • High annual income required
  • Startups may not qualify
  • Application process may require phone calls

Lendzi caters to small business owners with high revenue that have been denied a loan elsewhere. The company was founded in 2020 and has since funded more than $500 million to small businesses. They are a direct lender and a lending marketplace, which increases your odds of getting a beauty salon loan, even if you have poor credit.


Main Features
Lendzi features seven different types of small business loans, three of which do not require a high credit score. A working capital loan requires a score of 500 and allows you to borrow up to $400,000 for your beauty salon business. Factor rates start at 1.15 and terms range from three to 15 months. Lendzi also offers equipment financing up to $2 million. The minimum credit score accepted on this type of funding is 550, and rates start at 3.49%. Finally, Lendzi offers merchant cash advances to beauty salon businesses with poor credit. These require a credit score of 525 and range from $5,000 to $400,000. Terms range between three and 15 months, and factor rates start at 1.10. To qualify, Lendzi prefers a business history of six months and an annual revenue of $180,000 or more.

Bad credit doesn’t have to stand in the way of getting a loan. Lendzi works with business owners with high revenue and poor credit, and your beauty salon business is no exception. Reach out today to get started on your application. It takes just a few minutes to apply and will not impact your credit score.
Backd business loans

Backd - Best for Cheapest Interest Rates

Factor Rate
Starting at 1.10
Loan Amounts
Up to $2 million
Min. Annual Revenue
Key Features
  • Borrow up to $2 million
  • Min. Credit Score: 640
  • Min. Time in Business: 2 years
  • Industry best factor rate for MCA - as low as 1.10
  • APR for the Line of credit product starts at 35%
  • Flexible repayment terms up to 16 months
  • Get funding in as little as 24 hours
  • Check your rate with a soft credit pull
Pros & Cons
  • Fast funding times
  • Large loan amounts
  • Two types of loans available
  • Loans tailored to your business
  • Flexible payment options
  • No collateral required
  • Must be in business at least one year
  • Startups will not qualify
  • Rates not disclosed

Backd was founded in 2018 and tailors their loans to each individual business. No two businesses are alike, and no two loans should be, either. If you’re in need of additional funding for your beauty salon business - whether that’s to expand your business or purchase new equipment - Backd has a loan that could work for you.


Main Features
Backd offers working capital loans up to $2 million and business lines of credit up to $750,000. Beauty salons looking to fund one big project may fare best with the working capital loan. On the other hand, if you’re looking to have cash on hand at any given time at your disposal, a business line of credit may be in your best interest. The working capital loan must be paid back within 16 months, and payments can be made daily, weekly, or semi-monthly. The business line of credit is a bit more flexible - terms are unlimited and you pay for what you use, and can then choose to use the funds again. To qualify, you must be in business at least two years, have $200,000 or more in annual revenue, and 640 or higher FICO score.

Backd wants to see your business succeed. If you’ve been denied by other lenders, we recommend filling out an application at Backd and seeing what they have to offer.

National Funding - Best For Salon Equipment Loans

Factor Rate
Starting at 1.10
Loan Amounts
Up to $500K
Min. Annual Revenue
Key Features
  • Min. Time in Business: 6 months
  • Min. Credit Score 600
  • Borrow up to $500,000 in working capital
  • Equipment financing up to $150,000
  • Factor rate From 1.10
  • Fast funding
  • Early payment discounts
  • Equipment financing repayment 2-5 years
  • Working capital repayment 4 months - 2 years
Pros & Cons
  • Fair credit accepted
  • Excellent support
  • No down payment
  • High annual revenue requirement
  • No mobile app

National Funding offers equipment loans for beauty salons. You can borrow up to $150,000 to buy or use equipment, such as hood dryers, washing machines for towels, hair straighteners, hair curlers, brushes, and combs


Main Features
National Funding’s equipment loans go up to $150,000 with repayment terms between 2 and 5 years. You’ll repay your loan on a monthly basis. To qualify for an equipment loan, you’ll need a credit score of 575+, at least 6 months of business history, and $250,000 or more in annual revenue.

If you earn sufficient revenue and need to purchase or upgrade equipment for your beauty salon, National Funding can help. You may get approved without a down payment or excellent credit history.
SMB Compass

SMB Compass - Best for Fast Funding Times

Interest Rates
Starting at 7.99%
Loan Amounts
$10K - $10 million
Min. Monthly Revenue
Key Features
  • Loans up to $10 million
  • Min. credit score: can go as low as 550 for certain loans
  • Min. time in business: 1+ years in business, no startups
  • Funding times: 5 to 7 days for term loans and 24 - 48 hours for line of credit
  • Flexible terms: 2 – 10 years for term loans
  • Interest Rates: starting at 8.99% for term loans
  • Applying does not impact credit score
  • Nine loan products to choose from
Pros & Cons
  • Low, competitive rates
  • Large loan amounts
  • Loan terms up to 25 years
  • Excellent customer service
  • Poor credit not accepted
  • Not available in all states
  • Must be in business at least one year
  • High revenue requirements

Running a beauty salon can be costly, and SMB Compass understands it can be hard to get traditional bank loans. SMB Compass offers many different types of loans to help your beauty business, including business term loans, business lines of credit, SBA loans, equipment financing, invoice factoring, and more. If you’re not sure which loan would be best, reach out to a representative who will guide you through the process and help choose a loan that’s best for you. To qualify, SMB Compass prefers to see a minimum credit score of 650, $20,000 or more in monthly revenue, and at least one year of business history.


Main Features

SMB Compass offers nine different types of small business beauty loans to borrowers. Their mission is to make loans more accessible to small business borrowers by providing cost-effective and flexible lending solutions. SMB Compass business loans range from $10,000 to $10 million with terms up to 25 years. Rates start at 7.99% for qualified borrowers. The lender has currently provided more than 1,200 U.S. businesses with more than $250 million in financing. To apply, simply fill out their easy online application. It takes just a few minutes and will not impact your credit score. If approved, funding can be dispersed within 24 hours.

Whether you need to purchase new equipment for your salon or renovate your space, a loan from SMB Compass can help. Requirements tend to be a bit stricter compared to other lenders, but in return SMB Compass offers competitive rates, flexible terms, fast funding times, and excellent customer service. You can apply online with their easy application or contact a representative M-F to get started.

Bluevine - Best for Business Lines of Credit

Interest rates
Starting at 6.2%
Loan Amounts
Up to $250K
Min. Annual Revenue
Key Features
  • Funding up to $250,000
  • Min. credit score: 625
  • Min. time in business: 6 months
  • Interest rates starting at 6.2%
  • Loan Repayment 6-12 months terms
  • Quick and simple application
Pros & Cons
  • Streamlined application process
  • Rapid fund disbursement
  • Attractive interest rates
  • Personal customer support
  • Not available in all states
  • High rates for low credit applicants

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.


Main Features
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 625.

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.
biz2credit review

Biz2Credit - Best for Working Capital Loans

Interest rate
Starting at 7.99%
Loan Amounts
$25K to $500K
Min. Annual Revenue
Key Features
  • Working capital up to $2 million
  • Term loans up to $500,000
  • Term loan interest rate starts at 7.99%
  • Loan Repayment 12-36 months terms
  • Variable APR depending on the applicant
  • Funding in 72 hours
  • Soft credit pull
Pros & Cons
  • Streamlined online application process
  • Rapid fund disbursement
  • Outstanding customer support
  • Strict eligibility criteria
  • Multiple documents are required
  • Additional fees may apply

working capital loan from Biz2Credit can be used to finance daily business operations, such as purchasing beauty supplies and paying employee salaries. If you gather all of the required documentation in advance, you can get approved as quickly as 24 hours.


Main Features
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. 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.

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.
fora financial logo reviewed on


Min. Monthly Revenue
Min. Time in Business
6 months
Min. Credit Score
Key Features
  • Ideal for plenty of industries
  • Approval not solely credit based
  • Early payoff discounts
Pros & Cons
  • Quick turnaround
  • Simple online application process
  • Helpful customer support
  • Lenient qualification requirements
  • Interest rates are slightly high
  • Additional fees might be applied

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 72 hours. Another great advantage of this form of financing is that it doesn’t have strict qualification criteria, with Fora Financial underwriters looking beyond your credit score when reviewing your application.


Main Features

Fora Financial offers a fairly standard short-term business loan ranging from $5,000 to $750,000 in value, with terms anywhere between 4 and 15 months. The factor interest rates of around 1.1 to 1.9 might be slightly higher than with some other products on the market. However, the lender will consider the full picture of your business, which may mean that its products are more accessible to borrowers with a lower credit score. You must be in business for 6 months or more, and have an annual revenue of no less than $144,000 to qualify.

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.

Main Features of The Best Loans for Beauty Salons

National Funding4.1
SMB Compass4.5
Fora Financial4
  • Min. Credit Score - 550
  • Min. Time in Business - 6 months
  • Min. Annual Revenue - $180,000
  • Loan Amount - Up to $2 million
  • Interest Rate - 3.49% and up

How to Choose the Best Loans for Beauty Salons

  • Loan features. Make sure that the loan comes with the amounts you need, 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.


How Much Does It Cost To Finance a Beauty Salon?

The cost of opening a beauty salon can vary significantly depending on the type of services you provide, your geographic location, the number of employees, and whether or not you have previous clientele.

Be prepared to spend anywhere from a couple thousand dollars to half a million or more on the following items:

  • Salon licenses: $500 - $12,000
  • Salon equipment$5,000 - $25,000
  • Initial supplies and inventory: $2,000 - $15,000
  • Salon branding and design: $0 - $2,000
  • Marketing to build clientele: $500 - $5,000
  • Legal and consulting fees for starting a business: $50 - $5,000
  • Beauty salon loan: 1.25% - 10% of the loan amount
  • Salon insurance: $50 - $1,000 per month
  • Salon website: $0 - $10,000
  • Salon Point of Sale system and software: $0 - $300 per month
  • Salon location: varies greatly

When it comes to finding the salon location, you can choose to work out of your own home, rent a space in an existing salon, or lease or buy your own location. When buying a commercial property, you will need $15,000 to $70,000 in cash for the down payment for a property worth $100,000 to $700,000. This will leave you with monthly mortgage payments of $1,000 to $2,000 or more.


What Can Beauty Salons Use Business Loans For?

The purpose of the funding you need will determine the best type of business loan for your beauty salon. 

  • Start-up costs: If you are only starting out your salon business, a start-up loan can be used to lease a commercial space, hire and train staff, purchase all the necessary equipment and materials, and launch a marketing campaign.
  • Commercial real estate: This type of real estate financing can be used if you have been in operation for quite a while and are planning to expand your business to a new location.
  • Working capital: This type of loan can be used to finance daily operations of your business, such as marketing and staff wages. 
  • Business lines of credit. A business line of credit can be used for virtually anything, as long as you stay within the limit and pay off any outstanding balance on time.


How to Qualify for a Beauty Salon Loan?

The qualification requirements vary from lender to lender and from product to product. For example, with traditional banks, you would typically need to have a credit score of at least 650. With alternative lenders, on the other hand, a credit score of 500 may be enough. You would also typically need to be in business for 6 months or more and have annual revenue of anywhere between $100,000 and $250,000.


What Types of Loans Can Beauty Salon Owners Apply For?

There are numerous beauty salon loans for various business situations and different stages your business may currently be in. For example, you can choose between:

Some of these loans are granted based on personal credit score, while others pay more attention to your business history and annual revenue. Certain loans require collateral, while others don’t. The selection is virtually endless.



Without a doubt, finding the best loan option for your beauty salon can be daunting. Now that you have a better understanding of what's available on the market, make sure to carefully go over things like loan amounts, repayment terms, and fees and interest rates associated with lending products offered. Don’t forget to review the qualification criteria and the intended use of funds to confirm that the loan is a good fit for your business. Once you settle on your final choice, gather the necessary documentation and start the application process.


 *The required FICO score may be higher based on your relationship with American Express, credit history, and other factors.

About the Author

Tetiana Sitiugina-Babiuk

Written by: Tetiana Sitiugina-Babiuk

Independent writer and content strategist

Tetiana Sitiugina-Babiuk is an independent writer and SEO strategist helping a broad range of international clients to convey their stories for over five years.

More about me
Jen Hubley Luchwaldt

Reviewed by: Jen Hubley Luchwaldt

Content Writer and Editor

Jen Hubley Luckwaldt is an editor, writer, and content strategist with a focus on personal finance, careers, and DEI. A small business owner for over a decade, Jen helps publications and brands create and optimize B2B and B2C content.

More about me

Related Loan Picks

Show More