Business LoansBest Small Business Loans in May 2024
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LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.

Best Beauty Salon Loans

Updated on:
Content was accurate at the time of publication.

If you’re a hairdresser or nail stylist looking to open or expand your own business, beauty salon loans may help you get the funding you need. Beauty trends may come and go, but these business funding options and solutions stay in style. Whether you’re just starting out with a brand new beauty salon or you’re a veteran business owner, these loan options may be able to help you grow your business or just help make ends meet until the next prom season.

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Best beauty salon loans

No matter whether you’re just starting out or you’re a longtime beauty salon owner, we’ve rounded up some of the best beauty salon loans to choose from for your business funding needs.

How Does LendingTree Get Paid?
LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.

How Does LendingTree Get Paid?

LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.
LenderBest forMaximum amountTermsMinimum credit score
SBAExisting salon owners$5,000,000120 to 300 months680 (recommended)
National FundingEquipment loans$150,00024 to 60 months600
FundboxInventory purchases$150,0003 or 6 months600
OnDeckCash flow gaps$250,000Up to 24 months625
Fora FinancialBad credit$1,500,0004 to 18 months570

Learn more about how we chose our picks.

SBA: Best for existing salons


Term length120 to 300 months
Max. amount$5,000,000
Est. interest rate
  • SBA 7(a): prime rate of 7.50% plus 2.25% to 4.75% (variable); prime rate of 7.50% plus 5% to 8% (fixed)
  • SBA 504: Determined by current market rate
Min. credit score680
Min. time in businessTypically 2 to 3 years but sometimes fewer

Learn more

National Funding: Best for equipment loans


Term length24 to 60 months
Max. amount$150,000
Starting rate4.99% simple interest
Min. credit score600
Min. time in business6 months

Read our review

Fundbox: Best for inventory purchases

Fundbox logo

Term length3 or 6 months
Max. amount$150,000
Starting rate4.66% for 3 months or 8.99% for 6 months
Min. credit score600
Min. time in business3 months to 6 months

Read our review

OnDeck: Best for cash flow gaps

ondeck logo

Term lengthUp to 24 months
Max. amount$250,000
Starting rate27.30% APR
Min. credit score625
Min. time in business1 year

Read our review

Fora Financial: Best for bad credit


Term length4 to 18 months
Max. amount$1,500,000
Est. rate1.10 to 1.40 factor rate
Min. credit score570
Min. time in business6 months

Read our review

How we chose our picks

To appear on our list of best beauty salon loans, we selected options that would be available to beauty salon business owners at various stages of business growth, taking into account various credit profiles, time in business, loan purposes and annual revenue requirements.

Thing to know

When starting a salon business, you’ll not only need a background as a stylist but you’ll need the money to rent or buy a physical location, hire employees and obtain the necessary equipment. It can be rather costly, and you may need additional funding from a loan or line of credit with a lender. To receive funding, there will be certain eligibility requirements to follow. You will also need a solid business plan to create a strategy for operating and a salon structure to determine whether your stylists will be categorized as independent contractors or employees

Newer businesses that may not qualify for business loans from traditional brick-and-mortar banks may consider alternative online lenders as funding sources. Alternative lenders can be more lenient when it comes to eligibility requirements for their products, sometimes only requiring a business to be in operation for a few months, and a borrower may even be eligible with fair to low credit. However, online lenders may prioritize annual revenue and profitability over credit history.

The credit score requirement to get a beauty salon loan will depend on each lender. However, while a traditional bank lender may require a strong score, an alternative online lender may only ask for fair credit, with some offering products to those with low scores. On average, an alternative lender may require a small business owner to have a score of anywhere from 600 to 650 to qualify for its products, but some like Fora Financial, only ask for a score of 500.

Yes, a hairstylist can get an SBA loan to help with salon financing. However, this type of loan is better suited for existing salon owners due to its strict eligibility requirements and funding timeline. To receive an SBA loan, you’ll likely need a credit score of around 680. While minimum time in business, annual revenue and cash flow may also come into play, there are other deciding factors, such as meeting the SBA’s small business size standards that vary in each industry. Some SBA loans also require a down payment and collateral to qualify for funding.