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Beauty salon loans are loans that help beauty salon owners finance what is needed to keep the business running. Loans may be available to help owners cover payroll, help purchase or lease new equipment, or even open a brand new salon.
The best beauty salon loan companies will provide you with a great APR, flexible loan terms, quick loan funding, and excellent customer service to walk you through the loan application. There are specific loans to help you fund what you need, like buying an existing salon or starting your own from the ground up. We reviewed over 20 of the best beauty salon lenders to find the best loans for your specific needs.
Best Overall : Lendio
Why We Chose It: Lendio offers the most financing options of any other lender on this list including Paycheck Protection Program (PPP) loans, equipment loans, lines of credit, SBA loans, short-term loans, and more.
Multiple options for salon financing
Easy and quick online applications
High borrowing limits and fast funding
Not a direct lender
Lendio boasts a 15-minute application that will connect you to over 75 lenders. These lenders will be able to provide you and your salon with almost any financing option you could ever need.
Once you receive your offers, Lendio will provide you an assigned “personal funding manager” who will walk you through the different loan options to help you pick the best one for you and your salon. They will keep it simple, without financial jargon, to ensure that you understand what is included or not included in the loan. They will explain any fees and make sure you understand all terms completely.
To qualify for a loan, there are a few qualifications that need to be met. The salon must be in business for 12+ months with a minimum monthly revenue of $20,000, and the guarantor of the loan must have a credit score of 580 or more. The APR varies by the lender but is anywhere from 8% to 24%. You can request to borrow anywhere from $1,000 to $5M and have a repayment period from as little as one month up to 25 years.
Lendio has a simple website that is easy to navigate and provides a lot of resources. This includes their extensive FAQ section and their loan calculators so that you know what types of loans, payments, or terms are right for you.
Best for SBA Loans : Upwise Capital
Why We Chose It: Upwise Capital offers a range of business loan products, but their U.S. Small Business Administration (SBA) loans can be funded in as little as two weeks, which is faster than most other lenders.
Long payment terms
Available for a wide range of business needs
Funds in as little as two weeks
The SBA loan application requires a lot of paperwork
Requires collateral in most cases
Must be in business for 24 months or more
Upwise Capital does an excellent job explaining what an SBA loan is and how it is different than the other products they offer. They offer SBA loans anywhere from $5,000 to $5M, they have terms from five to 30 years, and the interest rate starts at 6.75%.
Upwise requires a credit score of 650 and higher, a business that has been established two years or more with annual revenue of over $200k, and over 10% profit shown on past tax returns. While having less than mentioned won’t disqualify you, it will decrease your chances of approval.
While applying for an SBA loan, you will notice that there is a lot of paperwork that needs to be submitted (like past tax returns, profit/loss statements, etc.). There will be a lengthy application that takes a lot of time, energy, and paperwork. You will want to be motivated and set realistic expectations.
Upwise has a customer service team to help you through every step of the way. If applying for a loan under $350,000, Upwise does offer an expedited process. If over $350,000, the loan process can take upwards of 30 days, sometimes as long as 45 days, to be approved.
Best for Salon Equipment Financing : OnDeck
Why We Chose It: OnDeck offers two different borrowing options to help salon owners purchase or lease new equipment.
Low credit score requirements
Funds in your account within two days of closing
12+ months or more in business required
Penalty for prepayment
Basic FAQ page on their website
OnDeck has the best options for equipment financing for beauty salons. They offer a short-term secured loan, an unsecured credit line, and an equipment leasing option for purchasing equipment. Additionally, OnDeck has a lower credit score requirement, making it possible for more salon owners to obtain a loan to fund their equipment purchase.
The online application easily walks you through each step, gathering information about your business (like size, age of business, and revenue). The application will ask about your credit history and the type and amount of equipment you plan to purchase with the loan proceeds.
The application will also provide an opportunity for you to upload the required documents. This will reduce the chances of the underwriter reviewing the application and requesting those documents later, delaying the process and costing you precious time.
The business line of credit can be approved for up to $100,000 and secured business loans can be approved for up to $250,000. Once approved, OnDeck will clearly lay out the terms of the loan including the amount and the frequency of the payments, the interest rate, and the maturity date. If the salon owner decides to repay the loan early, there is a charge of 25% of the loan's remaining interest.
Best for Starting a Salon : ROK Financial
Why We Chose It: ROK is an alternative funding option, meaning it is not a traditional bank. They fund startups with a low credit score requirement.
Loans from $10,000 to $5M
The loan can be used to fund working capital or to purchase inventory.
The application can be completed online.
Undisclosed rates until you apply
Minimum of 620 credit score
The newest bank on our list, ROK Financial was opened by CEO James Webster opened ROK Financial in 2020 when his other company, National Business Capital & Services, was forced to pause operations due to the coronavirus pandemic. The company was created to help startups get on their feet and has grown ever since.
They offer same-day funding for most loans, a simple application process, and a more considerable loan amount ranging from $10,000 to $5M. This money can be used for anything from securing a location, to equipment, to working capital. When applying with ROK, they will assign a no-cost business financing advisor to discuss your financing options. They will help you go over the options available to you and decide what makes the most financial sense for your specific business needs.
ROK Financial was born from the idea that businesses need to have a stable support system to get up and running. They are happy to provide that to their borrowers and help them with their startups. Although ROK Financial provides funding to startups, they do require a credit score of 620, which is higher than other lenders on our list, and borrowers cannot get the rates and repayment terms upfront.
Best for Short-Term Loans : FORA Financial
Why We Chose It: FORA Financial offers short-term business loans with a simple online application, quick approval times, and fast loan funding.
Low credit score requirement
Terms that range from three to 15 months
Minimum loan is $5,000
Higher-than-average loan rates
FORA Financial is perfect for a business that does not meet other lenders’ rigid requirements for approval. FORA takes a look at more than just a credit score, evaluating the entire business, and providing a technology-driven decision for the best loan for each company they service. FORA is also excellent for those who prefer flexibility in repayment options.
FORA Financial loans can be used for almost anything business-related, including funding payroll, renovations, purchasing inventory, marketing, or even purchasing new equipment. Because the loan term is up to 18 months, there is no need for collateral, and you can even earn a discount on your loan for prepayments. FORA does have a few requirements to approve their loans: You must be in business for 12 or more months and you need to have an average monthly revenue of $20,000 or more and a credit score above 500.
Loans can be anywhere from $5,000 to $300,000, and FORA uses upfront factor rates instead of a regular interest rate (APR). Factor rates are used to calculate the cost of the loan and are written out as decimal figures rather than a typical interest rate percentage. FORA’s factor rates can be anywhere from 1.08 to 1.34. For example, a $100,000 loan with a 1.08 factor rate would end up costing a total of $108,000 over the life of the loan.
But since FORA does offer prepayment discounts, a savvy business can potentially reduce the charge associated with factor rates. You can compare factor rates to APR to see how it could impact your budget.
Best for Bad Credit : Torro
Why We Chose It: Torro offers $10,000 to $2M loans to business owners with bad or no credit.
Fast approvals and funding in under a week
No minimum credit score
Borrow up to $2M
Little information on fees and rates before applying
Relatively new company
Limited customer service hours
Torro has a fast online application that can be submitted in minutes. Once submitted, you watch a quick one-minute video that clearly explains what comes next. After applying and creating an account to track your application, you will receive a call within 12 hours to discuss the loan.
Once the call is completed, they will use QuickWrite, their proprietary funding system, to speed up the process and quickly get you a decision and funding. At this time, you would provide any further information or documentation, if required. Then you will electronically authorize your transaction and let Torro take it from there.
Torro understands that every business is different and business needs vary widely. They consider this and offer different types of loans. For companies that have been in business for over a year, they provide expansion loans, no-collateral loans, working capital loans, and equipment loans. For startups, they offer business development loans, minority loans, and even loans for high-risk businesses.
Repayment terms, rates, and funding for each loan vary based on the loan type.
Torro has been in business since 2015 and is based in Salt Lake City, Utah. They lend out to all 50 states, and everything is done online or over the phone. They are available by phone or chat 8 a.m. to 6 p.m. MT (10 a.m. to 8 p.m. ET) Monday through Friday.
Best for Commercial Real Estate : PNC Bank
Why We Chose It: PNC Bank provides funding for owner-occupied real estate loans, perfect for salon owners who want to own their commercial property.
Choice of interest rate types
Discounts on rates
Loans of up to $3M
Must be owner-occupied
Only available in 23 states
Must apply in person or over the phone
PNC Bank offers owner-occupied real estate loans for competitive rates. You can choose from a fixed or variable interest rate, terms up to 10 years, and payments can be deducted right from your PNC Bank checking account.
PNC does require that you have been in business for three or more years. They also require proof of general profitability that shows a stable or upward trend in revenue, clean personal credit history for the past five years, and a business credit history free of delinquencies. An origination fee may apply, and they will loan anywhere from $100,001 to $3M.
Loans through PNC are available in the following states: Alabama, Florida, Georgia, Illinois, Indiana, Kansas, Kentucky, Maryland, Massachusetts, Michigan, Missouri, New Jersey, New York, North Carolina, Ohio, Pennsylvania, South Carolina, Tennessee, Texas, West Virginia, and Wisconsin, as well as Washington, D.C.
Headquartered in Pittsburgh, Pennsylvania, PNC Bank has been in operation since 1852. Their small business bankers are there to help you through the application process and answer any questions. Their small business customer service line is open Monday through Friday, 8 a.m. to 6 p.m. ET.
There are many reasons why a beauty salon would be interested in a loan, whether it is to start a new salon, replace or buy new equipment, or even to just have some working capital on hand.
Picking the right loan is crucial to keeping your salon up and running. You want to find a lender with transparent rates and fees, and if taking a loan is something new to you and your business, you want to find a lender who will help walk you through the process.
If you’re unsure which lender to contact for your beauty salon loan, consider using Lendio first. It offers a wide range of loan amounts, various financing options, and competitive rates.
|Lender||Why We Picked It||Loan Amounts Available|
|Many different financing options and great rates||$1,000-$5M|
Best for SBA Loans
|SBA Preferred Lender and helpful customer service to assist with the application||$5,000-$5M|
Best for Salon Equipment Financing
|Three different financing options for new equipment||Up to $250,000|
Best for Starting a Salon
|Unique company that helps businesses get started||$10,000-$5M|
Best for Short-Term Loans
|Offers short-term loans that range from 3-18 months||$5,000-$300,000|
Best for Bad Credit
|Business financing for business owners with less-than-perfect credit||$10,000-$2M|
Best for Commercial Real Estate
|Best option for owner-occupied commercial real estate loans||$100,001-$3M|
Frequently Asked Questions
What Are Loans for Beauty Salons?
Loans for beauty salons are loans to help beauty salon owners fund their businesses. This can be a loan (either secured or not), a line of credit, an SBA loan, or a commercial real estate mortgage.
There are many different types of loans for different situations and the various business stages that your salon can be in. Some loans do not require something to be pledged as security for the loan, also known as collateral, while others may need it. Some loans are based on your annual revenue and personal credit score.
What Can Beauty Salons Use Business Loans For?
Depending on the type of loan, you can use the loan to purchase commercial real estate (either a primary business location, a new location, or refinance your current real estate loan), to purchase new equipment, fund payroll, provide working capital, or almost any other business-related expense.
What Is the Minimum Credit Score Required to Get a Beauty Salon Loan?
This depends on the lender. For example, some traditional banks require you to have a credit score of 650 or higher, while lenders who provide alternative funding may have a lower score requirement, and some may not make their credit decision based on your credit score at all.
Most lenders will consider your personal credit score unless you have an established Employer Identification Number (EIN) with its own credit history, and some lenders will take both scores into consideration. The majority of the lenders mentioned above check personal credit scores and business revenue.
What Types of Loans Can Beauty Salon Owners Apply For?
Beauty salon owners can apply for many different types of loans depending on how their business is set up legally. For example, being a sole proprietor, LLC, or corporation can make a difference in what loans you are eligible for.
There are many different types of loans for businesses, including short-term loans, long-term loans, commercial real estate loans, SBA loans, secured loans, lines of credit, credit cards, and equipment loans.
We reviewed over 20 different lenders, including banks, credit unions, and alternative lenders, and looked at the available loan amounts and the requirements needed from the business, like years in business, revenue, and credit score. We also compared the available rates and the terms that were available for each option.
Each different lender had its own unique terms and requirements. Most assigned an associate to each business to help them through the application process and were transparent and detailed about the documentation they required.
Additionally, all the lenders we picked were very clear about how long the loan would take to get an approval decision. Some, like the SBA loans, could take weeks or even months.
All of our picks offered competitive rates, flexible terms, and abundant customer service to help answer any questions that borrowers might have.