At a glance
- Best for equipment
- Equipment financing (chairs, stations, lasers, devices)
- Best for slow months
- Business line of credit up to $1,000,000
- Best for a new location
- Equipment financing or a term loan once you have operating history
- NexGen amounts
- $10,000 to $20,000,000 across programs
- Approval speed
- Typically 1 to 24 hours for many programs
- Credit
- 650+ on most programs; 500+ for revenue-based financing; 700+ for SBA loans
Beauty businesses are built on skill and loyal clients, but growth still takes capital. A remodel that makes your space feel premium, new styling chairs and shampoo stations, a second location, or the move from renting a booth to owning your own shop all cost money. Even busy salons can feel the squeeze during slow months or when a key stylist leaves.
This guide covers the best financing for hair salons, barbershops, nail salons, day spas, med spas, lash and brow studios and other beauty businesses, plus how to qualify and answers to the questions owners ask us most.
At NexGen Lending, we help beauty businesses across the country compare financing for build-outs, equipment and working capital with one application.
Why Beauty Business Financing Is Different
- Smaller loan sizes. Many salons need $10,000 to $150,000, smaller than many banks like to lend.
- Booth rental vs. commission models. Lenders want to understand how your revenue works.
- Build-out costs. Plumbing for shampoo bowls, ventilation for nail salons and electrical work add up fast.
- Owner-driven revenue. In small shops, the owner’s own book of clients can be a big share of sales.
- Card-heavy sales. Daily card deposits help with revenue-based financing.
The Best Types of Financing for Salons and Barbershops
| Financing type | Best for |
|---|---|
| Equipment financing | Styling chairs, shampoo stations, dryers, pedicure chairs, lasers and med spa devices |
| Term loans & unitranche debt | Remodels, a second location, marketing campaigns |
| Business line of credit | Retail product inventory, slow months, payroll |
| SBA loan | Buying an existing salon, larger build-outs, refinancing |
| Revenue-based financing | Owners with steady card sales and imperfect credit |
Salon equipment financing
Chairs, stations and specialized devices can be financed so you keep cash for other needs. For med spas, high-cost devices like lasers are often the biggest expense, and equipment financing is the usual way to pay for them. NexGen equipment financing offers up to 100% financing for qualified borrowers, starting at $10,000.
Term loans for remodels and expansion
A remodel or second chair-filled location is a long-term investment. A term loan gives you a lump sum with predictable payments. For larger projects or buying an established salon, an SBA loan offers lower rates and longer terms.
A line of credit for slow seasons
January and late summer are slow for many salons. A line of credit covers rent and payroll during dips, and repays during the busy holiday and wedding seasons.
How to Get the Best Salon and Barbershop Financing
- Track client retention and rebooking. Strong rebooking rates show lenders your revenue is reliable.
- Report all income. Cash tips and unrecorded cash sales don’t count toward your revenue in a lender’s eyes. Deposit everything into your business account.
- Know your revenue mix. Separate service revenue, retail product sales and booth rent.
- Get contractor quotes before applying. For a remodel or build-out, written quotes help lenders size the loan.
- Build business credit. A separate EIN, business bank account and vendor accounts help. NexGen's business credit guidance can help you get started.
- Lower your card processing costs. Reviewing your card processing can free up cash every month.
- Compare the full cost. Look at the total payback and the APR or factor rate on every offer.
What Lenders Look for in a Beauty Business
- Time in business (newer salons have fewer options)
- Monthly revenue and consistent deposits
- Personal credit score
- Professional licenses for the owner and staff
- Lease terms
- For new salons: experience, a business plan and existing client following
Common Questions Salon and Barbershop Owners Ask
Can I get a loan to open my first salon?
Not through NexGen until you have some operating history. NexGen programs are built for operating businesses: revenue-based financing needs steady deposits and a 500+ credit score, and most other programs need 12+ months in business and 650+ credit. Brand-new owners often start with SBA microloans through nonprofit lenders, a CDFI or the local SBDC.
How do I go from booth rental to owning my own shop?
Start by building a track record: deposit all income in a business account, keep tax returns current and grow your client list. Then use equipment financing, a term loan or an SBA loan for the build-out and equipment.
Can I finance med spa equipment?
Yes. Lasers and aesthetic devices are commonly covered by equipment financing or leases. Lenders may ask about medical director arrangements and licensing, which vary by state.
Can I buy an existing salon with an SBA loan?
Yes. SBA 7(a) loans can finance a salon purchase, including equipment and goodwill. Lenders will want to know how many clients and stylists are likely to stay after the sale.
What credit score do I need for a salon loan?
With a 500 to 649 credit score, revenue-based financing is the main option, since it leans on sales more than credit. Most other NexGen programs, including equipment financing and lines of credit, require 650+, and SBA loans require 700+. Below 500, NexGen's business credit guidance can help you understand your credit profile and build toward approval.
How much can a salon borrow?
It depends on revenue, credit and the type of financing. Through NexGen, programs start at $10,000.
Get Your Salon or Barbershop Funded with NexGen
- Equipment, term and SBA loans for build-outs and upgrades
- Lines of credit up to $1,000,000 for slow seasons
- Nationwide service, from our office in Hoboken, New Jersey
This article is for general informational purposes only and is not financial, legal, or tax advice. SBA figures come from the U.S. Small Business Administration and NexGen figures from NexGen’s service pages, as of October 2026. Loan terms, rates, and eligibility vary by lender and program and are subject to approval. Availability varies by state.