Salon expenses can pile up fast. Whether you're upgrading your space, replacing worn-out chairs, hiring more help, or covering slower months, the need for extra funding can come up at any stage of business.
Many salon owners turn to financing to stay on track or move forward with growth plans. Salon financing can help cover day-to-day costs like rent and supplies, or bigger investments like expanding your services or opening a second location.
This guide breaks down what you need to know about salon financing, how to qualify (even with less-than-perfect credit), and what to expect during the application process. You’ll also find tips on how to use funds wisely and avoid common missteps.
Let’s get into it.
Why Beauty Salons Need Funding
Opening a salon comes with plenty of upfront costs. You’ll need chairs, mirrors, shampoo stations, and a full lineup of products. Renting a commercial space adds to the list, and if you're hiring a team, you’ll need to budget for payroll and training. Startup funding can help you cover the essentials and start strong.
Growth Opportunities
Once things are up and running, new opportunities tend to pop up. With the loan for your hair salon, you can take on projects that boost your revenue and help your business grow.
New Services
Adding services like lash extensions, facials, or massages can attract a broader range of clients, but they often require new tools, certifications, or supplies. A little extra funding can help you launch these upgrades with confidence.
Remodeling
Upgrading your space can refresh your brand and enhance the client experience. Even small changes—new lighting, modern furniture, or an updated layout—can create a big impact. A loan for your beauty salon can help turn those ideas into reality.
Expanding Locations
Opening another location is a big step, but a well-timed funding boost can help you take it without straining your finances.
Unexpected Expenses
Even a well-run salon runs into surprise costs now and then.
Repairs and Slow Seasons
Broken equipment, water leaks, or HVAC problems can halt services. Then there are the quiet months when fewer clients book appointments. Salon financing becomes a useful backup to keep the business running smoothly until things pick up again.
Types of Salon Business Loans Explained
With so many financing options out there, it can be tough to know which one actually makes sense for your salon. The right loan depends on your goal—covering day-to-day expenses, making upgrades, or planning for long-term growth. Understanding the different types of loans available can help you make smarter, more confident choices for your business.
Let’s take a closer look at the most popular salon financing options and how they work.
Term Loans
Think of this as the classic loan: you borrow a set amount and repay it over a specific time with interest. Term loans are great for big one-time investments like remodeling your salon or launching a second location.
Pros: Predictable payments, larger funding amounts
Cons: Stricter qualifications, longer application process
Best for: Salon owners planning major upgrades or long-term growth
Lines of Credit
Need flexible access to funds without taking a lump sum upfront? A line of credit works like a credit card. You borrow only what you need and pay interest on the amount used.
Pros: Flexibility, reusable funds
Cons: May come with annual fees or lower limits
Best for: Managing seasonal dips or covering ongoing expenses like inventory restocks
Equipment Financing
Need a new shampoo station, hair dryer, or salon chair? Equipment financing helps you purchase gear and pay it off over time. The equipment often serves as collateral, making this a more accessible option for newer salons.
Pros: Easier to qualify for, supports salon upgrades
Cons: Limited to equipment purchases only
Best for: Salons needing to replace or upgrade tools without draining cash flow
Merchant Cash Advances
This is a faster, more flexible option if your salon earns consistent card payments. You receive a lump sum in exchange for a percentage of future sales. It’s not a traditional loan, so it will give you a quicker access to working capital.
Pros: Fast approvals, minimal paperwork
Cons: Higher costs, daily repayments
Best for: Covering short-term cash flow gaps or unexpected expenses
Want to dive deeper into how this works? Here’s a handy breakdown on how a cash advance works.
SBA Loans
These government-backed loans are known for their favorable terms and lower interest rates. But the process can be time-consuming, and requirements are often stricter.
Pros: Low interest, long repayment periods
Cons: Slow approval times, detailed documentation
Best for: Established salons looking for long-term, affordable funding
Each loan beauty salon option comes with its own benefits, so the best fit really depends on what your salon needs right now. Knowing your options helps you make a smarter, more confident decision.
How to Qualify for a Beauty Salon Loan
Lenders look at a few key details when deciding whether to approve salon business loans. Knowing what they’re checking for—and preparing ahead of time—can improve your chances of getting the funding you need.
Minimum Revenue and Time in Business
Most lenders have a minimum requirement for how long you’ve been in business and how much you earn each month. Typically, they look for 6–12 months of business activity and consistent revenue. To get ready, gather financial documents like bank statements and sales reports. If your salon is still new, keeping clean records and using a dedicated business account can work in your favor. If you're not set up yet, this guide on small business banking needs is a great place to start.
Credit Score Requirements
While a stronger credit score can help, it’s not a deal-breaker if yours is still in progress. Some lenders work with scores below 650, especially if your cash flow is solid. Improving your score—by paying bills on time, lowering debts, and monitoring your credit—can give you more options for loans for a hair salon and better terms.
Business Plan and Documentation
Lenders appreciate a clear plan. Even a simple outline that explains how you run your salon, what the loan will fund, and how you expect to grow can boost your application. Be ready to provide:
- Bank statements
- Tax returns
- Proof of business registration
- Any existing debt obligations
Having everything organized upfront makes the process smoother and shows lenders you're serious and prepared.
Getting ready in advance can make the loan process a lot easier. When your finances are organized and you understand what lenders are looking for, it’s much easier to qualify for funding that fits your business. Even small steps—like reviewing your credit and keeping clear records—can give you a stronger starting point when it’s time to apply.
How to Fund Your Salon with Less-Than-Perfect Credit
Is your credit score not where you want it to be? That doesn’t mean your salon plans have to pause. There are still ways to get salon financing with bad credit—it just takes a different route and a little preparation.
Why Alternative Lenders May Be a Better Fit
Traditional banks tend to have stricter requirements, and lower credit scores can make approval tough, even if your salon is doing well.
That’s where alternative lenders come in. They focus more on your business’s actual performance, like steady income and how long you’ve been operating, rather than just your credit score. Lenders like Giggle Finance offer quick approvals, flexible terms, and don’t rely on a hard credit check, making them a solid option when you’re looking for salon financing with bad credit.
How to Prove You’re a Reliable Borrower
If your credit history doesn’t reflect your current stability, show lenders what’s working. Helpful indicators include:
- Consistent income from services and retail
- A growing client base with solid appointment history
- Positive online reviews and repeat business
- Well-kept financial records
It also helps to include a short note explaining any past credit issues and the steps you’re taking to improve. Being upfront builds trust.
Short-Term Solutions While Rebuilding Credit
While you work on your credit, short-term funding options like a business cash advance can help you stay on track. This type of financing is based on your future sales, so it's easier to qualify and doesn’t require perfect credit.
If timing is tight, Giggle Finance offers fast, stress-free access to capital—no hard credit pull, no lengthy process. It’s built for busy salon owners who need quick support to keep things moving.
Salon Loan Amounts: What You Can Expect
One of the first questions salon owners ask when exploring financing is, “How much can I actually borrow?” The answer depends on your business’s age, revenue, and plans for using the funds.
Here’s a general breakdown by business stage:
Startup Salons
New salons often need help covering upfront costs like equipment, inventory, lease deposits, and licenses. Lenders may be cautious since there's not much financial history yet, but that doesn’t mean you’re out of options.
- Typical loan amounts: $5,000–$25,000
- What matters: Your personal credit, business plan, and any available collateral
Even a small loan can help you get set up and ready to welcome your first clients.
Growing Salons
If you've been open for a year or more and bookings are picking up, you're likely in a strong position to access more capital. Maybe you're expanding services, hiring staff, or restocking supplies.
- Typical loan amounts: $10,000–$50,000
- What matters: Consistent revenue and signs of growth
Lenders like to see upward momentum, so strong monthly sales can work in your favor.
Established Salons
Salons with several years in business, reliable income, and loyal clients are often eligible for larger loans. This could be the time to tackle big projects, like remodeling or opening a second location.
- Typical loan amounts: $25,000–$100,000+
- What matters: Solid financials and a clear plan for how you'll use the funds
Need something faster and simpler? Giggle Finance offers up to $10,000 with no hard credit check and quick approval—perfect for salon owners who want a hassle-free way to access funding.
Smart Ways to Use the Funds from Your Salon Financing
Once you’re approved for salon financing, the next big question is: “How can I use it?” Whether it’s a little extra cushion or a full-on growth plan, the way you spend your funds can shape your salon’s future.
Let’s look at a few smart, practical ways beauty salon owners put their loans to work.
Upgrade Salon Equipment
Chairs, shampoo stations, dryers—salon gear isn’t cheap, and it takes a beating over time. If your tools are slowing things down or looking dated, it might be time for an upgrade. Better equipment can improve efficiency, client comfort, and overall results.
Instead of tapping into your savings, loans for beauty salons give you the flexibility to spread out those costs and make improvements without the financial strain.
Marketing and Brand Refresh
If appointments have slowed or you want to reach more clients, marketing can make all the difference. Think refreshed signage, better lighting for photos, a new logo, or paid social ads. Even hiring a pro photographer for before-and-after shots can level up your brand.
Hiring freelancers to help? Make sure you’re set up for success—this guide on managing 1099 contractors is a good resource.
Expanding Service Offerings
New treatments like lash lifts, facials, or barbering services can attract a wider audience. Of course, they also come with upfront costs, like training, equipment, and sometimes added space.
A loan gives you the breathing room to try new offerings without risking your day-to-day cash flow. Start small, see what clicks, and grow from there.
Choosing the Right Lender for Your Salon
Not all lenders work the same way, and finding the right one can make a big difference in how easy (or stressful) your salon financing experience is. It’s not just about who will approve you, but who fits your business needs.
Let’s break down your options and how to know what’s right for you.
Online Lenders vs. Banks vs. Credit Unions
Traditional banks usually offer the lowest interest rates, but their requirements can be demanding. If your salon is new or your credit score isn’t where you want it to be, approval may be a long shot, and the process can take weeks.
Credit unions may offer more flexibility, especially if you already bank with them. Still, they often require strong credit or collateral.
Online lenders tend to be faster and more flexible. Many are built to serve small businesses and self-employed owners who need quick access to funds or don’t check all the traditional boxes. This route might be a better match if you want speed, simpler applications, and less paperwork.
How to Spot Flexible Repayment Options
Getting the money is just one part—the other is making sure the repayment terms actually work for your business. Some lenders offer daily, weekly, or monthly payments. Others offer seasonal plans that adjust to your salon’s busy and slow periods.
Avoid lenders who won’t explain the terms clearly or pressure you into signing before you understand the full cost.
Questions to Ask Before Saying Yes
Before saying yes to any offer, take a moment to ask:
- What’s the total cost, including fees and interest?
- Are there penalties if I pay early?
- How fast will the funds be available?
- Can I talk to someone if I have questions later?
And one more big one: Do they understand small businesses like mine?
The right lender should feel like a partner, not just someone handing over a check. So, take your time, read the fine print, and trust your gut—your salon deserves it.
Funding Your Future: Long-Term Salon Success
Salon owners aren’t just focused on this week’s bookings—you’re thinking about where your business is going next. Maybe it’s expanding your team, opening another location, or offering something new. Strategic financing can help you reach those goals without waiting years to save up.
Using Financing to Build Momentum
A well-timed loan can do more than cover short-term costs. It gives you the chance to take action on growth opportunities—like remodeling your space, investing in premium products, or enrolling your team in advanced training. Instead of putting plans on hold, funding lets you move forward now and benefit sooner.
Balancing Repayments with Reinvestments
One of the biggest questions salon owners have is: Can I afford the repayments?
It’s a fair concern. The goal is to borrow what makes sense and use it to increase your revenue, whether through added services, better client retention, or a more efficient team.
Smart borrowing should support growth, not stall it. When used wisely, financing becomes part of a cycle: grow, repay, reinvest, and repeat.
How Salon Loans Help You Reach Goals Faster
Let’s say you want to:
- Launch bridal packages before peak season.
- Open a second suite in another part of town.
- Hire a front desk manager to improve the client experience.
Each of these goals is within reach when you have the right financial support in place.
Funding isn’t a backup plan. It’s a smart way to move forward faster, with more flexibility and control over how your salon grows.
Final Thoughts: Turn Your Salon Dreams into Reality
Owning a salon takes more than talent—it takes vision, determination, and yes, sometimes financial support. From launching your first studio to expanding your service list, having access to the right funding at the right time can make all the difference in how fast and confidently you grow.
Hair salon owners face all kinds of expenses—launching, expanding, upgrading, or getting through a slow month. From hair salon business loans to salon financing with bad credit, there are real options to help you move forward.
You don’t need a perfect credit score to access funding that supports your goals. What matters is finding a lender that understands your business and makes the process simple.
Giggle Finance offers fast, flexible funding up to $10,000 with no hard credit check. It's an excellent fit for salon owners who want to keep growing without the usual stress.
Want to get started? Apply now and see how much you can qualify for.
Disclaimer: Giggle Finance provides Revenue-Based Financing programs for business purposes only. Any mention of any loan product(s), consumer product(s), or other forms of financing is solely for marketing and educational content purposes and to help distinguish Giggle’s product from other comparable financing options available in the market.