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Beauty Salon Loans: Best Business Loan Options

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

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Beauty salon owners may need to find the right financing to grow their business, to address unexpected emergencies, or to expand your customer base. Luckily, there are many small business loans  for beauty salons are 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.

Our Top Picks for Best Beauty Salon Loans

kabbage
  • No prepayment penalties and no origination fees
  • Easy application process
  • Monthly fee : 2-9% for 6 month loans, 7.5-18% for 12-month loans, 15.75-27% for 18-month loans
Min. Credit Score
Min. Credit Score 640
Loan Amount
Loan Amount $2K-$250K
Loan Repayment
Loan Repayment Up to 18 months
fora financial logo reviewed on Finimpact.com
  • 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

How to Choose the Best Loans for Beauty Salons

Choosing the best beauty salon loan comes down to examining several factors. Our financial experts have compiled a list of the best lenders and their offerings based on the factors below:

  • 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.

 

Best Loans for Beauty Salons - 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. Kabbage - Best for Fair Monthly Revenues

Kabbage offers a business line of credit that can be useful for either large, one-time purchases or ongoing expenses. These types of unsecured loans can be useful for cyclical businesses like beauty salons that experience slower volume during downturns

Pros
Straightforward application process
No prepayment or origination fees
Accessible and helpful customer support
Cons
Complicated fee structure
Potentially high rates

Kabbage lines of credit come with a limit that can vary between $2,000 and $250,000 and a repayment term of either 6, 12, or 18 months. Unlike many of its competitors, Kabbage charges a monthly fee instead of an APR. Fees are due whenever there is a balance on the credit line. While these fees can add up, 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 costs considerably.

The fee structure is:

  • 2-9% for 6-month loans 
  • 7.5-18% for 12-month loans 
  • 15.75-27% for 18-month loans

Features

Loan Value$2,000 to $250,000
Term Length6, 12, or 18 months
Repayment PeriodMonthly
Origination FeeNone
Interest Rate

2-9% for 6-month loans 

7.5-18% for 12-month loans 

15.75-27% for 18-month loans

Minimum Credit Score640
Minimum Annual Revenue$3,000
Minimum Time in Business12 months

The Bottom Line

If you need help covering short-term business expenses, Kabbage’s line of credit is a solid option. Just be aware that monthly fees can add up.

Try Kabbage

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

Fora Financial

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.

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 $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.

Features

Loan Value $5,000 - $750,000
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 - 1.9
Minimum Credit Score Undisclosed
Minimum Monthly 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.

3. Biz2Credit - Best for Working Capital Loans

Biz2Credit

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.

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 LengthVariable
Repayment PeriodDaily, weekly, or bi-monthly
Origination Fee1% - 6%
APR RangeVariable
Minimum Credit Score575
Minimum Annual Revenue$250,000
Minimum Time in Business6 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

4. Bluevine - Best for Business Lines of Credit

BlueVine

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

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.

Features

Loan Value$5,000 to $250,000
Term Length6 or 12 months
Repayment PeriodWeekly or monthly
Origination FeeNone
Interest Rate0.30% - 1.50% per week (Flex6)1.50 - 6.50% per month (Flex12)
Minimum Credit Score625
Minimum Annual Revenue$120,000
Minimum Time in Business6 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

5. National Funding - Best For Salon Equipment Loans

National Funding

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

Pros
Fair credit accepted
Excellent support
No down payment
Cons
High annual revenue requirement
No mobile app

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.

The Bottom Line

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.

6. OnDeck - Best for Business Term Loans

OnDeck

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.

OnDeck’s business loan for beauty salons offers 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 up to 24 months. This type of loan comes with a very high average APR of 62.1%, 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 LengthUp to 24 months
Repayment PeriodDaily or weekly
Origination Fee0% - 5%
Interest RateStarting at 29.9% APR
Minimum Credit Score600
Minimum Annual Revenue$100,000
Minimum Time in Business1 yea

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 pay the loan over the full term.

Try OnDeck

7. Lendio - Best for Commercial Mortgages

Lendio

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

When you decide to upgrade your current beauty salon or purchase a brand new property, a commercial mortgage from Lendio can provide you with one-time funding for the real estate acquisition.

While the exact loan terms will vary from lender to lender, you can expect to receive anywhere between $250,000 and $5 million, with a monthly repayment period and a term length between 20 and 25 years. As a longer-term loan, the mortgage comes with reasonable interest rates of as low as 4.25% to 6%.

Features

Loan Value$250,000 - $5 million
Term Length20-25 years
Repayment PeriodMonthly
Origination FeeVaries
Interest Rate4.25% - 6.00%
Minimum Credit Score560
Minimum Annual Revenue$120,000
Minimum Time in BusinessNot disclosed

The Bottom Line

When upgrading your beauty salon location, it is worth exploring what Lendio has to offer in terms of commercial real estate mortgages. Because the platform works with multiple lenders, you are likely to receive multiple competing offers to help fund your real estate acquisition.

Try Lendio

Best Loans for Beauty Salons - Main Features

CompanyMin. Credit ScoreMin. Time in BusinessMin. RevenueLoan AmountInterest Rate
Fora FinancialUndisclosed6 months$144,000$5,000 - $750,000Factor 1.1 - 1.9
Biz2Credit5756 months$250,000$25,000 - $2 millionVariable
Bluevine6256 months$120,000$5,000 - $250,000As low as 4.8%
National Funding5756 months$250,000Up to $150,000Not disclosed
OnDeck60012 months$100,000$5,000 - $250,00012% - 46% APR
Kabbage64012 months$3,000 monthly$2,000 - $250,000Varies (see above)
Lendio560Not disclosedNot disclosed$250,000 - $5 million4.25% - 6.00%

 

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.

 

Conclusion

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. Best of luck!

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

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