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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. 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.
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.
American Express Business Blueprint™ - Best for Fair Monthly Revenues
Monthly fee: 3-9% for 6 month loans, 6-18% for 12-month loans, 9-27% for 18-month loans
Loan amounts ranging from $2,000 to $250,000
No prepayment penalties and no origination fees
Convenient application process
Pros & Cons
Straightforward application process
No prepayment or origination fees
Accessible and helpful customer support
Complicated fee structure
Potentially high rates
American Express Business Blueprint™ program hosts the American Express® Business Line of Credit product. The lender 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.
Main Features American Express Business Line 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, American Express 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: 3-9% for 6-month loans, 6-18% for 12-month loans, 9-27% for 18-month loans.
If you need help covering short-term business expenses, American Express Business Line of Credit is a solid option. Just be aware that monthly fees can add up.
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 one year and have $100,000 or more in annual revenue
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.
Excellent customer reviews on independent review sites
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.
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.
GoKapital is our top pick for multiple loan options. Founded in 2013, the company offers small business term loans, merchant cash advances, business lines of credit, equipment financing, SBA loans, and startup loans. They also accept all industries and are available in all 50 states, so if you’ve been denied a loan elsewhere because you’re in the beauty industry, look no further than GoKapital.
Main Features GoKapital small business loans for beauty salons range from $5,000 up to $5 million. Terms vary, but most are between one and five years with payments made weekly or monthly. SBA loans come with the lowest rates, starting at just 4%. When you apply, you should receive a lending decision within 24 hours and, if approved, funds within just a few business days. To qualify, GoKapital prefers a minimum credit score of 500, one year of business history, and $240,000 or more in annual revenue. If you don’t meet the revenue requirement, GoKapital’s startup loans require just $50,000 in annual revenue.
GoKapital is best for beauty salon business owners who know they need funding but may not know what type of loan will suit them best. Customer service is excellent at GoKapital, so you can always give them a call or reach out via chat or email to ask any questions.
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.
A 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.
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.
Main Features of The Best Loans for Beauty Salons
Min. Credit Score
Min. Time in Business
$5,000 - $5 million
4% and up
$25,000 - $2 million
$5,000 - $250,000
As low as 4.8%
Up to $2 million
3.49% and up
Up to $150,000
American Express Business Line of Credit
Average monthly revenue: at least $3,000
$2,000 - $250,000
Varies (see above)
$5,000 to $200,000
Max 35.99% APR
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:
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.
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.