The Best Loan Options For Beauty & Nail Salon Small Businesses & Startups
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Whether you’re the owner of an established hair salon or it’s your dream to open your own nail business, one thing is clear: your business needs money. As the old saying goes, it takes money to make money, but what happens when the money’s just not there?
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 small business loan, you can pay your business expenses, tackle that unexpected emergency, or expand your customer base with a new marketing campaign.
No matter what your needs, a small business loan has you covered. Before diving into the application process, know what to expect, the kinds of loans you’ll encounter, and which type of loan works best for your business. Read on to learn more about the options available to you to start or expand your beauty or nail salon.
Learn More About Our Top Picks
| Company | Best For | Next StepsBest For |
|---|---|---|
Lendio  | Best for purchasing salon equipment | Best for purchasing salon equipment
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Fundbox  | Best for supplies and inventory | Best for supplies and inventory
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Chase Ink Business Cash  | Best for emergency business funding | Best for emergency business funding
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SmartBiz  | Best for purchasing a salon | Best for purchasing a salon
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Credibly  | Best for marketing & advertising | Best for marketing & advertising
|
Other Featured Options:
- National Business Capital: Best for startup costs
- LoanBuilder: Best for bad credit
- OnDeck: Best for hiring & training
Read more below to learn why we chose these options.
Table of Contents
Best Business Loans For Beauty & Nail Salons
Whether you own a salon and need capital or are just getting started, there’s a loan out there for you. Get the funding you need for your beauty or nail salon from these lenders, including Lendio, SmartBiz, Credibly, LoanBuilder, and Fundbox.
1. Lendio: Best For Purchasing Salon Equipment
Lendio
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If you need funds to purchase salon or nail spa equipment, look no further than Lendio. Lendio offers equipment financing of up to $5 million through its lending partners. Rates start at 7.5% with repayment terms up to five years for qualified borrowers. 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.
Pros
- Multiple types of financing available
- Quick & easy application
- High borrowing limits
- Quick prequalification
Cons
- Rates can be expensive
2. Fundbox: Best For Supplies & Inventory
Fundbox
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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. All you need is a credit score of at least 600, at least $100,000 in annual revenue, and have been in business for at least six months. If you qualify, you can make immediate draws and have cash in your bank account as quickly as the next business day. If you prefer a lump sum of cash, Fundbox now also offers a term loan for qualified borrowers.
Pros
- Low credit score requirements
- Quick & easy application
- Fast disbursements
Cons
- Rates can be expensive
- Short repayment terms
3. Chase Ink Business Cash: Best For Emergency Business Funding
Chase Ink Business Cash
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Chase Ink Business Cash | Annual Fee: $0
Purchase APR: 14.74% - 20.74% (variable) |
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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 variable interest rates of 14.74% to 20.74%.
Chase Ink Business Cash also has one of the best welcome offers on the market, giving you $500 cash back if you spend $3,000 within the first three months of opening the card. After that, you can receive up to 5% cash back on eligible purchases, which can really stack up if you use your card regularly.
Pros
- Excellent rewards program
- No annual fee
- Competitive APR
Cons
- Must have good to excellent credit to qualify
4. SmartBiz: Best For Purchasing A Salon
SmartBiz
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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 loans up to $5 million with interest rates starting at just 4.75%. Repayment terms are set over 10 or 25 years, allowing you to slowly pay off that big purchase over time. SmartBiz can also help you acquire a bank term loan up to $500,000 with rates starting at 6.99%.
Pros
- Low rates & fees
- High borrowing limits
- Repayment terms up to 25 years
Cons
- Slow application process
5. Credibly: Best For Marketing & Advertising
Credibly
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For marketing and advertising expenses, check out the funding offered by Credibly. There are a number of options available, including working capital loans and merchant cash advances up to $400,000 with repayment terms up to 18 months.
Need a higher borrowing limit? Credibly can hook you up with up to $5 million in financing through various lending programs, including SBA loans. 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.
Pros
- Low credit score requirements
- Quick & easy application
- Multiple types of financing available
Cons
- Rates can be expensive
- Some additional fees
6. National Business Capital: Best For Startup Costs
National Business Capital
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National Business Capital simplifies the process of finding a loan for your startup costs. National Business Capital helps connect you with over 75 lenders that offer a variety of financing options, including term loans, lines of credit, SBA loans, equipment loans, and more.
Even if you’re a new business, National Business Capital can help get you funded. Borrowing requirements are just three months in business and $120,000 in annual revenue. There are no minimum credit requirements, as National Business Capital works with all credit profiles.
Pros
- High borrowing limits
- Financing is available for qualified startups
- Low credit score requirements
Cons
- Rates can be expensive
Get Started with National Business Capital
7. LoanBuilder: Best For Bad Credit
LoanBuilder
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Have credit challenges? LoanBuilder is one lending option that may work out for you. LoanBuilder requires a credit score of just 620, at least nine months in business, and $42,000 in annual revenue.
If you qualify, you may receive as much as $500,000 to be repaid over terms up to 52 weeks. Like many other short-term lenders, weekly repayments are required, but LoanBuilder’s one-time fee, easy application, and fast disbursements may be well worth it to your business.
Pros
- Low credit score requirements
- Quick & easy application
- Fast disbursements
Cons
- Short-term financing
- Not available to some industries
8. OnDeck: Best For Hiring & Training
OnDeck
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If you’re ready to hire and train new stylists or nail technicians but don’t have the capital to do so, OnDeck may be able to help. Through OnDeck, you can apply for a term loan of up to $250,000 or a flexible line of credit up to $100,000.
It’s pretty easy to qualify with OnDeck. All you need is a minimum credit score of 600, annual revenue of $100,000, and a business that’s been in operations for at least one year. While you won’t get rates as low as bank loans or SBA loans, you will get fast funding and rates that are as good as — or better — than other short-term lenders on the market.
Pros
- Low credit score requirements
- Quick & easy application
- Fast disbursements
Cons
- Not available in all states
- Rates can be expensive
Types Of Loans For Beauty & Nail Salons
There are a number of 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 Loan: 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.
- Small Business Administration (SBA) Loan: Small Business Administration loans 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.
- Business Line 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.
- Business Credit Card: With a business credit card, 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.
- Short-Term Loan: Short-term loans give you a lump sum of cash that’s repaid over a period of time — anywhere from a few months 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.
How To Get A Beauty Salon Loan: 4 Tips
Ready to apply for a loan for your salon? Before you hit “Send” on a loan application, keep these four points in mind to improve your lending experience.
Tip #1: Compare Your Options
It’s easy to get overexcited when you receive a lender’s approval. Before you accept, make sure you know all your financing options. Is it possible that you may find a lower rate, better terms, or higher borrowing limits elsewhere? Does the lender require collateral or have high fees that you’re not comfortable paying?
Whatever the case may be, always shop around. Loan aggregators like Lendio and SmartBiz simplify the process for you. With one application, you can connect with multiple lenders, compare loan options, and find the financing that’s best for your business.
Tip #2: Understand The Cost Of Your Loan
Before you sign on the dotted line, understand the true cost of borrowing. Calculate how much interest you’ll pay on your loan. Also take into consideration fees and other costs, such as origination fees and closing costs. Additionally, find out if there are prepayment penalties if you repay your loan early.
It’s easy to accept a loan to get money now without thinking ahead. However, make sure that you analyze how the loan may affect you in the future to avoid getting caught in a cycle of debt.
Tip #3: Check Your Credit Score & Report
It’s important to go into the loan process with an understanding of where your credit stands. If your credit score is 600, for instance, you’re not going to get funded by a lender that requires a score of at least 650.
Start off 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.
Tip #4: Prepare Your Documentation
Depending on the type of loan you pursue, some documentation may be required with your application. 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. While requirements vary by product and by lender, you may be required to submit past tax returns, financial statements, business licenses, information and resumes for all business owners, and bank statements.
FAQS About Salon Loans
Final Thoughts
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.
In Summary: Best Business Loans For Beauty & Nail Salons
- Lendio: Best for purchasing salon equipment
- Fundbox: Best for supplies and inventory
- Chase Ink Business Cash: Best for emergency business funding
- SmartBiz: Best for purchasing a salon
- Credibly: Best for marketing & advertising
- National Business Capital: Best for startup costs
- LoanBuilder: Best for bad credit
- OnDeck: Best for hiring & training
Erica Seppala
Expert Analyst & Reviewer at Merchant Maverick
An expert in accounting, finance, and point of sale, Erica has been researching and writing about all things small-business since 2018. Erica's insights into personal and business finance have been cited in numerous publications, including MSN, Real Simple, and Reader's Digest. She is a graduate of Limestone College.
View Erica Seppala's professional experience on LinkedIn.
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