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See how these seven lenders can help you get the capital you need to start or upgrade your beauty or nail salon.
Erica has been writing about small business finance and technology since 2008. She joined Merchant Maverick in 2018 and specializes in researching and reviewing business software, financial products, and other topics to help small businesses manage and grow their operations. Her expertise has been cited in MSN, Reader's Digest, Vox, U.S. News & World Report, and Real Simple. She is a Certified ProAdvisor for QuickBooks Online and QuickBooks Payroll, a graduate of Limestone University, and currently resides in Greenville, South Carolina.
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Erica SeppalaErica has been writing about small business finance and technology since 2008. She joined Merchant Maverick in 2018 and specializes in researching and reviewing business software, financial products, and other topics to help small businesses manage and grow their operations. Her expertise has been cited in MSN, Reader's Digest, Vox, U.S. News & World Report, and Real Simple. She is a Certified ProAdvisor for QuickBooks Online and QuickBooks Payroll, a graduate of Limestone University, and currently resides in Greenville, South Carolina.
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Chelsea Krause is a writer who specializes in accounting, payroll, and small business loans. She has been helping small business owners manage their finances since 2016. She is a QuickBooks Certified User and former eCommerce store owner. Her accounting expertise has been quoted in Forbes and her work appears in Startup Nation, Small Business Bonfire, and Women on Business. Chelsea graduated summa cum laude with a BA in English & Creative Writing from George Fox University and studied abroad at the University of Oxford as well.
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Chelsea KrauseChelsea Krause is a writer who specializes in accounting, payroll, and small business loans. She has been helping small business owners manage their finances since 2016. She is a QuickBooks Certified User and former eCommerce store owner. Her accounting expertise has been quoted in Forbes and her work appears in Startup Nation, Small Business Bonfire, and Women on Business. Chelsea graduated summa cum laude with a BA in English & Creative Writing from George Fox University and studied abroad at the University of Oxford as well.
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Our content reflects the editorial opinions of our experts. While our site makes money through referral partnerships, we only partner with companies that meet our standards for quality, as outlined in our independent rating and scoring system.
If you’re the owner of a beauty or nail salon and you need money to grow your business (or you’re ready to get your business off the ground), consider a small business loan as one of your best resources. With a beauty salon loan, you can pay your business expenses, tackle an emergency, or expand your customer base with a new marketing campaign.
No matter what your needs, a small business loan has you covered. In this post, we’ll look at our top picks for salon loans, the types of loans to consider (and how to use them), and the steps to take before submitting a business loan application for your salon.
Funding process may be faster with a direct lender
Why We Chose Lendio For Purchasing Salon Equipment
If you need to purchase equipment for your salon, look no further than Lendio, a marketplace lender with 75+ lending partners. Lendio offers equipment financing through its lending partners, allowing you to purchase everything from pedicure stations to styling chairs. With one application, you can receive multiple offers, so you can choose the one that works best for your business.
Lendio also offers additional types of financing for your salon. This includes Small Business Association loans, business lines of credit, credit cards, and short-term loans. Borrower requirements vary by financial product, but Lendio helps connect you with lenders even if you have less-than-perfect credit, a short time in business, or lower annual revenues.
Lendio Rates & Fees
For equipment financing, partner lender rates start at 7.5% with repayment terms up to 10 years for qualified borrowers.
Lendio Eligibility Requirements
For equipment financing, Lendio has the following minimum requirements:
Credit score of 520+
Annual revenue of $50,000+
0-12 months in business
If you don’t meet these minimum requirements, additional products may be available to finance your salon.
Choose Lendio If...
You want to finance salon and spa equipment with equipment financing
You want to easily compare lender offers
You have credit challenges, low revenue, or operate a newer business
Why We Chose Fundbox For Purchasing Supplies & Inventory
When it's time to restock your supplies and inventory, a flexible line of credit is a convenient way to get your hands on fast funds. One lender that specializes in business lines of credit is Fundbox, which provides you with up to $150,000 to purchase supplies, inventory, or cover other business expenses.
Qualifying for a Fundbox line of credit is pretty easy, and you can get an instant credit decision. If you qualify, you can make immediate draws and have cash in your bank account as quickly as the next business day.
Fundbox Rates & Fees
Fundbox charges a borrowing fee that is based on the length of the loan. Fees start at 4.66%+ (12-week terms) or 8.99%+ (24-week terms).
Fundbox Eligibility Requirements
To qualify for a Fundbox line of credit, you must operate a U.S.-based business and must meet the following minimum requirements:
Personal credit score of 600+
Annual revenue of $30,000/year+
Time in business of 3 months
Own a business checking account
Choose Fundbox If...
You prefer a flexible line of credit to make draws from as needed for supplies, inventory, and other expenses
Why We Chose Chase Ink Business Cash For Emergency Funding
Instead of scrambling for cash when an emergency arises, reach for a business credit card, like Chase Ink Business Cash. This card comes with no annual fee and competitive interest rates. Chase Ink Business Cash also has one of the best welcome offers on the market, giving you $750 cash back if you spend $6,000 within the first three months of opening the card.
If want to use this card for your regular business expenses, you can receive 5% cash back on purchases from office supply stores and internet, cable, and phone services, which can really stack up if you use your card regularly. You can also receive 2% cash back on gas and restaurant purchases and 1% cash back on everything else.
Chase Ink Business Cash Rates & Fees
Chase Ink Business Cash has a variable interest rate that ranges from 17.49% – 25.49%. There is a 0% introductory APR for the first year for new cardholders.
There is no annual fee. However, there is a 3% foreign transaction fee and fees for late/returned payments, cash advances, and balance transfers.
Chase Ink Business Cash Eligibility Requirements
Chase does not have specific credit score requirements to qualify for the Ink Business Cash Card. However, you will need to have good to excellent credit to qualify. Our recommendation is to have a credit score of at least 640 before applying.
Choose Chase Ink Business Cash If...
You want a business credit card to use for emergency expenses
You want a business credit card with an excellent reward program to earn cash back
You plan to use your card to pay for office supplies, telephone, cable, and internet expenses
Why We Chose SmartBiz For Loans For Purchasing Salons
For a big purchase like buying a salon, you want to find a low-interest, long-term loan that doesn't break the bank. One great option to consider is an SBA loan, and SmartBiz can help you navigate through the challenges of the SBA loan application process.
Through SmartBiz, you may qualify for SBA loans up to $500,000 with low interest rates and long repayment terms for your larger purchases, including purchasing a salon, buying equipment, or even refinancing existing debt. And if an SBA loan doesn't seem like the right fit? SmartBiz can also help you obtain term loans or lines of credit.
SmartBiz Rates & Fees
SmartBiz offers SBA loans from $50,000 to $500,000 with repayment terms of 10 years. Interest rates are 10.25% – 14%. Some additional fees including closing costs, packaging fees, and guarantee fees may apply.
SmartBiz Eligibility Requirements
To qualify for an SBA loan through SmartBiz, you must own a U.S.-based business and must meet these requirements:
2 years in business
Personal credit score of 650+ (SBA loans)
No outstanding tax liens
No bankruptcies or foreclosures in the last three years
No recent charge-offs or settlements
Up-to-date on government loans
Choose SmartBiz If...
You need a long-term, low-cost loan
You need to make a larger purchase, such as buying a salon, purchasing equipment, or refinancing existing debt
Credibly has multiple funding options for business owners with less-than-perfect credit, as well as borrowers with high credit scores. Together with its partner lenders, Credibly offers several options for credit-challenged salon owners, including working capital loans and merchant cash advances.
If these options don't work for you, Credibly and its lending partners have additional funding programs, including SBA loans and invoice factoring. Depending on the type of loan you pursue, you can get approved in as little as 24 hours with fast deposits to your bank account to give you access to cash when you need it.
Credibly Rates & Fees
Rates and fees vary based on the lending product you select.
If you have a low credit score and don’t qualify for funding elsewhere, you may consider getting a merchant cash advance from Credibly. For this funding, factor rates start at 1.11, a one-time fee of 2.5% of the borrowing amount is added to your balance, and there is a monthly admin fee of $50.
Credibly Eligibility Requirements
Eligibility requirements vary by loan product. For MCAs, Credibly lists the following borrowing requirements:
Personal credit score of 500+
At least 6 months in business
Average bank deposits of $15,000/month
Choose Credibly If...
You have a low credit score and can’t qualify for funding elsewhere
You’re a newer business that has been in operations for at least six months
If you operate a new salon and can't find funding, consider LoanBuilder. This lender has lower time in business requirements than banks and many alternative lenders, requiring just nine months in business to qualify for its short-term loans.
With LoanBuilder, you can receive up to $150,000, although new borrowers are limited to just $100,000. The application process is fast and easy, and you can receive funding as quickly as the next business day after approval.
LoanBuilder Rates & Fees
LoanBuilder charges a one-time borrowing fee but unfortunately does not disclose specific rates. In the past, these rates were 2.9% – 18.72% of the loan amount. Repayments are made weekly over 17 – 52 weeks.
LoanBuilder Eligibility Requirements
To qualify for a LoanBuilder loan, you must meet these requirements:
Time in business of 9 months
Annual revenue of $33,300
In the past, LoanBuilder required a credit score of at least 620 to receive a loan. However, this requirement is no longer advertised by LoanBuilder.
Choose LoanBuilder If...
You need a loan and have been in business for at least nine months
You want a loan that charges a simple, one-time borrowing fee
Why We Chose OnDeck Loans For Building Business Credit
OnDeck gives you a choice between short-term loans up to $250,000 and flexible lines of credit up to $100,000. It's easier to qualify for this funding than with banks and traditional lenders. The application process is usually completed within 24 hours, and if approved, you may be eligible to receive funding as quickly as the same day.
But what we really like about OnDeck is that the lender reports to business credit bureaus. Making timely payments on your loan can help boost your business credit, which helps you qualify for higher borrowing limits, lower rates, and better terms for funding products in the future.
OnDeck Rates & Fees
Rates and fees vary based on which product you select. For OnDeck’s lines of credit, rates start at 29.9% and OnDeck states that the average rate is 52.6%. A maintenance fee of $20/month also applies in most cases.
For term loans, rates also start at 29.9% and the average rate is 55.8%. An origination fee of 0% – 5% is charged.
OnDeck Eligibility Requirements
To qualify for an OnDeck loan or line of credit, you must meet these requirements:
Personal credit score of 625+
At least 12 months in business
Annual revenue of $100,000/year
Own a business bank account
Choose OnDeck If...
You want a loan that will help you boost your business credit
You want a term loan or line of credit with more relaxed requirements than traditional lenders
Business Loan & Funding Products Review Methodology
We spend hours researching and evaluating each business loan and funding product that we review at Merchant Maverick, placing special emphasis on key characteristics to generate our ratings.
Weighted Rating Breakdown
Rates & Fees 20%
Services 20%
Eligibility Requirements 20%
Application 15%
Sales & Advertising Transparency 10%
Customer Service 10%
User Reviews 5%
When rating lenders and funding providers, we use a 31-point rubric that looks at rates and fees, services, eligibility requirements, application, sales and advertising transparency, customer service, and user reviews. We weigh each section differently to calculate the total star rating. This rubric is applied to traditional term loans, as well as short-term loans, start-up loans, lines of credit, online lending products, merchant cash advances, and equipment financing products.
Rates & Fees: 20% of the total star rating
Services: 20% of the total star rating
Eligibility Requirements: 20% of the total star rating
Application: 15% of the total star rating
Sales & Advertising Transparency: 10% of the total star rating
Customer Support: 5% of the total star rating
User Reviews: 5% of the total star rating
Each section is further broken down into granular, weighted subsections, in which we examine specific attributes like terms lengths, conditions of repayment, credit score and revenue requirements, ease of application, length of time to funding, the ethics involved in promoting the lending product, customer support, and the overall reputation of the lender or funding provider.
There are multiple financing options to fund your beauty or nail salon, whether you have an existing business that needs extra capital or you’re just getting started. Here are the types of financing to consider.
Bank Loans
A bank term loan is a loan that is taken out from a bank. These usually have very low interest rates and long repayment terms but also come with higher borrower requirements, such as an excellent credit score.
Bank loans are best for larger purchases that need to be paid off over a longer period, such as purchasing a salon or buying equipment.
Small Business Administration (SBA) Loans
Small Business Administration loans, like those you can find with SmartBiz, are backed by the SBA and provide business owners with low-interest, long-term loans that are easier to obtain than bank loans.
A popular option is the SBA 7(a) loan, which provides up to $5 million with repayment terms up to 25 years. Funds can be used to purchase a business, commercial real estate, equipment, supplies, or for use as working capital.
Equipment Financing
Equipment financing is used to purchase equipment over time. You get to take ownership of the equipment immediately, and the cost of the equipment — plus lender interest — is repaid over several years.
Equipment financing can be used to purchase a variety of salon equipment, such as nail stations, hairdryers, stylist chairs, or a point-of-sale system. You can apply for equipment financing and other types of loans through Lendio.
Business Lines Of Credit
A business line of credit is a flexible form of funding. Your lender sets a credit limit, and you can make cash draws up to and including that credit limit. This is a fast and easy way to get cash when you need it for any purpose, from restocking inventory to paying an emergency expense.
Fundbox, Credibly, Lendio, and OnDeck all have business lines of credit that could work for your salon expenses.
Business Credit Cards
With a business credit card (like Chase Ink Business Cash), you can make purchases anywhere cards are accepted. You can spend up to and including your set credit limit, and you can purchase whatever your business needs: inventory, supplies, bill payments, or an emergency expense.
Pay down the balance — plus interest — and funds are replenished and available to use again. With the right card, you can even earn rewards with responsible use.
Short-Term Loans
Short-term loans give you a lump sum of cash that’s repaid over a few months up to a few years. Short-term loans are typically faster and easier to obtain than other loans, like bank loans, but come with higher interest rates.
Short-term loans are ideal for when you need a lump sum of cash fast to cover salon expenses, inventory, supplies, and more. LoanBuilder, OnDeck, Credibly, and Lendio are great places to start if you want this type of funding.
Tips For How To Get A Beauty Salon Loan
Ready to apply for a loan for your salon? Keep these four points in mind to improve your lending experience.
Compare Loan Options: Make sure you find the best rates and terms and the highest borrowing limits by shopping your options. Loan aggregators like Lendio or SmartBiz simplify the process for you.
Understand The Cost Of Borrowing: Calculate interest, consider fees, and add in other costs such as origination fees and closing costs. Additionally, find out if there are prepayment penalties if you repay your loan early. Understanding the true cost of borrowing can help you avoid getting trapped in a cycle of debt.
Check Your Credit Report & Score: Understand where your credit stands to know what you’ll qualify for. Start by getting your free credit score and credit report. Review your credit report for any errors that need to be disputed. If your credit score isn’t quite where it needs to be to get funded, take steps to improve your score, such as making timely payments and paying down (or paying off) any debt if possible.
Prepare Your Loan Documentation: While lines of credit and short-term loans may have few (if any) documentation requirements, some loans — like bank term loans or SBA loans — require you to submit documentation throughout the application process to qualify for a loan. Be ahead of the game by prepping this documentation in advance.
The Bottom Line On Nail & Beauty Salon Loans
It’s common to encounter financial hurdles while growing your salon, which is when taking out a loan just makes sense. By doing your research and becoming a responsible borrower, you’ll be able to boost and expand your business without clearing out your checking account. That’s the beauty of small business loans.
While you’re starting or updating your salon, have you considered adding or upgrading your POS system? A POS system allows you to easily accept payments, book appointments, sell and accept gift cards, and reward customer loyalty. Learn more about why you should have a salon POS system before checking out our top picks for salon POS software.
Erica has been writing about small business finance and technology since 2008. She joined Merchant Maverick in 2018 and specializes in researching and reviewing business software, financial products, and other topics to help small businesses manage and grow their operations. Her expertise has been cited in MSN, Reader's Digest, Vox, U.S. News & World Report, and Real Simple. She is a Certified ProAdvisor for QuickBooks Online and QuickBooks Payroll, a graduate of Limestone University, and currently resides in Greenville, South Carolina.
View Erica Seppala's professional experience on LinkedIn.
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The vendors that appear on this list were chosen by subject matter experts on the basis of product quality, wide usage and availability, and positive reputation.
Merchant Maverick’s ratings are editorial in nature, and are not aggregated from user reviews. Each staff reviewer at Merchant Maverick is a subject matter expert with experience researching, testing, and evaluating small business software and services. The rating of this company or service is based on the author’s expert opinion and analysis of the product, and assessed and seconded by another subject matter expert on staff before publication. Merchant Maverick’s ratings are not influenced by affiliate partnerships.
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