Struggling to get funding from old-school banks? Can’t afford the new styling chairs you’ve been eyeing?

As a salon owner, we have unique financial needs that many lenders just don’t understand. But now innovative fintech companies are stepping in with tailored lending solutions for beauty professionals.

With the right salon small business loan, you can access the working capital required to take your salon dreams from Pinterest boards to real life. Desire cutting-edge wash stations? A luxury retail display? How about hiring top talent from a competing salon? The funding makes it possible.

In this article, I’ll go over the best beauty salon loans on the market right now. We’ll look at what to look for when picking a loan, the best loans for beauty business, and the benefits of each one. Let’s get into it.

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What Is a Beauty Salon Loan?

Special loans exist just for beauty salons. Whether you're just starting out or wanting to upgrade your space and tools, a beauty salon loan gives you money to make those goals happen.

These loans get that salons have unique stuff to pay for. Things like new hair dryers and chairs, eye-catching decor, more locations, an expanded team, etc. A loan brings in dollars to invest in your growth. The cash can also cover day-to-day costs when business is slower so you avoid falling behind. It's there when you need it.

There are different loan types too – from banks, online lenders, merchant cash ones, etc. Each has its own terms and rates. We’ll get more into the different types later in this article.

For now, know that the right salon loan gives you financial backup to turn your vision into reality. Want to create a spa vibe? Expand your services? Offer the latest treatments? Loans make it achievable. For a competitive industry, these loans let you focus on your expertise of making clients look and feel fabulous. That success can then cover repaying the loan support.

How to Choose the Right Loan for Your Beauty Salon

It’s easy to get overwhelmed when trying to look for a way to borrow money to grow your salon business. Interest rates, payment terms, the reputability of the company offering the loan, and your own personal financial health are all things you should take into consideration when trying to find the best beauty salon loan for your business.

Here are a few things you should take into consideration when finding the right loan for your beauty salon:

1. Define the purpose: Know exactly what the funds will be used for – new equipment? A remodel? Extra staffing? Understanding needs guides the loan type and amount. This will help you identify which loans to pick based on your use case.
2. Compare terms: Interest rates, fees, and repayment schedules vary widely across loans. Crunch the numbers to find the most cost-effective fit.
3. Check qualifications: Each lender has eligibility criteria based on credit score, time in business, revenue, etc. Only apply where you meet requirements.
4. Vet the Lender: Look for lenders with a strong reputation for customer service and reasonable flexibility if hardships arise.
5. Evaluate speed: In a rush? Prioritize lenders providing quicker application decisions and access to funds.

Doing this homework means your financing fuels your dreams rather than creating financial burdens down the road. Alright, now let’s get into some beauty salon loans that are available right now.

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5 Best Beauty Salon Loans in 2024

Here are our favorite beauty salon loans for 2024:

1. Genius Loans
2. SBA Loans
3. Traditional Bank Loans
4. National Funding Loans
5. OnDeck Loans

Alright, let’s take a look at what each one has to offer.

1. Genius Loans

Genius Loans is GlossGenius’ new offering to help small salon and spa businesses reach their goals. Loans range anywhere from $1,000 to $250,000 USD – with funds available in as little as just 2 business days.

The best part about using Genius Loans over some others on our list? No personal credit check is required to get started. But, you do need to be a GlossGenius customer in order to qualify.

Here's the cool part – your monthly repayment adapts based on your salon revenue. When you have slower sales it goes down, so it's more manageable.

There's also no confusing compound interest or late fees. Just a simple, straightforward percentage payment. As you can tell by now, GlossGenius has worked tirelessly with thousands of salon business owners to create the best beauty salon loan out there. Be sure to check it out and see if it fits into your workflow!

Benefits of Genius Loans

Here are a few benefits of using Genius Loans:

• Fast funding within 2 business days
• No personal credit check required
• Eligibility based on payment history with GlossGenius
• Flexible repayment tailored to sales
• Simple fee structure without compounding interest, collateral, or late fees

2. SBA Loans

SBA (Small Business Administration) Loans, particularly the SBA 7(a) program, give beauty salons flexible financing options for different needs, like working capital, equipment purchases, and real estate investments.

Since the government guarantees them, the rules to qualify are easier than traditional bank loans. That makes SBA loans perfect for salon owners looking to refresh their space, expand locations, hire more stylists, or take other steps to grow. Having Uncle Sam back the loans gives you a better shot at approval.

It also means you may get lower interest rates and other perks compared to alternatives. The SBA wants to support small business success stories.

Benefits of SBA Loans

Here are a few benefits of using SBA loans:

• Different use cases for working capital, equipment, or real estate
• Easier qualifications compared to traditional loans
• Government-backed, offering more favorable terms
• Can support various salon growth and sustainability projects

3. Traditional Bank Loans

If you're running a beauty salon and looking for some financial boost, walking into your local bank might seem like stepping back in time. But hear me out: sometimes, old school is the cool school. Traditional Bank loans can be that steady hand to help your business flourish.

While not specifically just for beauty salons. Traditional Bank offers a wide range of business loans with competitive rates and flexible terms designed to meet most small business needs, including beauty salons.

Traditional Bank’s offerings include:

• Commercial real estate loans
• Lines of credit
• Equipment purchase loans
• Construction loans

As a community bank, their loan officers may better understand the opportunities and challenges for local beauty businesses compared to national banks. Traditional Bank also leverages experienced lenders who understand local markets, so it’s worth giving them a call to see if they can help out with your specific needs.

Benefits of Traditional Bank Loans

Here are a few benefits of using Traditional Bank loans:

• Competitive rates and flexible terms
• A wide range of loan options (real estate, equipment, lines of credit)
• Local market understanding with experienced lenders
• Support for growth and operational needs

4. National Funding Loans

National Funding provides customized financing solutions for beauty and wellness businesses through products such as small business loans and equipment leasing. Their lending options aim to help salons and spas with covering operating expenses, making payroll, upgrading equipment, and managing inventory.

By attempting to make the application process easy, National Funding can be a popular choice for the unique needs of each beauty business. With industry-specific financing solutions featuring competitive rates and terms, National Funding positions themselves as a strategic partner invested in helping beauty professionals access the working capital necessary to thrive. Their loan programs provide the flexibility many salon owners require when looking to fund improvements or smoothly manage cash flow.

Benefits of National Funding Loans

Here are a few benefits of using National Funding loans:

• Tailored financial services for the beauty and wellness industry
• Options for both small business loans and equipment financing
• Quick and easy application process
• Personalized lending solutions based on the specific needs of beauty businesses

5. OnDeck Loans

OnDeck offers customized financing services tailored for beauty salons and spas. Their main lending products are lines of credit and short-term business loans. A key advantage OnDeck emphasizes is speed – they promote a streamlined application process along with faster decisions and delivery of funds compared to traditional bank loans.

Beyond pace, OnDeck also highlights flexibility as a benefit. They make lending decisions based on evaluating the overall financial profile of the salon business rather than just the owner's personal credit score. This aims to expand eligibility and accessibility of capital for many beauty industry establishments. Also, the loan terms, interest rates, and payment structures can be adjusted to suit the unique cash flow patterns and requirements of salons and spas.

Benefits of OnDeck Loans

Here are a few benefits of using OnDeck loans:

• Flexibility for salon-specific use cases
• Fast funding to quickly access needed funds
• Evaluation based on overall business health, not just credit scores
• Straightforward application process for ease and efficiency

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Can You Get a Beauty Salon Loan With Bad Credit?

Picture this: your beauty salon is the talk of the town, but to keep those lights twinkling and shears snipping, sometimes you need a bit more cash flow. Here's where loans come into play. But what if your credit score looks like it got in a fight with a bottle of nail polish remover? Don't fret just yet.

Credit scores can be as fickle as hair trends. One day you're riding high on platinum blonde highlights; the next, you're dodging glares for rocking last season's pixie cut. A low credit score doesn't mean game over for securing a loan – it just means we have to get creative.

Lenders know that life happens – maybe that one summer nearly tanked your finances or an investment didn’t pan out. Hence, a few are prepared to navigate the choppy waters of poor credit ratings, offering terms such as elevated interest fees or condensed repayment schedules.

So how do you find these accommodating lenders? Start by checking out options specifically tailored for small businesses in the beauty industry. Genius Loans, for instance, offers flexible funding solutions designed to fit salon needs without doing a credit check.

SBA loans might also be within reach despite less-than-stellar credit. They’re known for their willingness to support small businesses because they understand passion beats perfection any day – a philosophy every stylist can relate to.

Overall, make sure to do your research and talk to a local financial advisor before you decide on any one solution. We hope this article gives you some clarity on what’s out there and what might make the most sense for you. Now go out there and build the salon of your dreams!

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