Beauty Salon Loans: Best Options To Consider in 2024

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.

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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.

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.

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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.

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. 

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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.

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.

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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.

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.

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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.

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.

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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.

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.

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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.