Small Business Loans for Salons
Shield Funding has been securing small business loans for salon business owners for more than a decade. If you are looking to improve or expand your salon we offer competitive rates and flexible terms for all types of borrowers. If you have bad credit or do not qualify for traditional financing we are your trusted loan resource.
BUSINESS LOANS FOR SALONS
|Estimated Business Loan Term
||2 to 18+ Months
||12% to 45%*
|Time in Business Required
|Min Credit Score Require
|Min Monthly Deposits Required
|Min Monthly Revenues
|Min Business Loan Amount
|Max Business Loan Amount
|Max Number of Negative Days
||3 Within a Month
|*rates depend on funding duration
Small Business Loans for Your Salon Business
Whether you’re relatively new to the salon business or expanding a long-running chain of salons, Shield Funding can help you with flexible business loans. We work with salon owners that have bad credit ratings and we provide a wide range of products and services to make sure you get the money you need to run and grow your business.
Running a salon is a dream job for many people, but it can be difficult to get a salon up and running successfully. It can take six to nine months to get a new location running at full speed, and expanding your business requires more time and money.
Because many of our loans require that you’ve been in business for two months, we can help you through the difficult transition period when you’re growing your salon. We also work with experienced owners who need some help with operating expenses or expansions. Get started on your business funding today!
What Do I Need to Qualify?
Below is a list of the requirements needed to get approved for funding with our most basic program. Although in some cases there are many additional factors that may be considered, meeting these three requirements gives you a very high chance of having your application approved.
- At Least 2 Months in Business
- 500 Min. Credit Score
- $8,000 Min. Monthly Revenue
How Do I Apply?
Applying has never been easier. You can either call our toll free number 24 hours 7 days a week at (888) 882-6117
Submit your online application by clicking apply below and entering a few basic details about your business.
All of the business loans do not require upfront fees or collateral. We also offer bad credit business loans for owners that don’t have the best credit history. Here are a few of our business loan products that appeal to salon owners:
Our general-purpose small business loans help you cover any expense that comes up. It could be as small as bringing on more stylists for a busy time of the year or as big as opening a brand new location.
With up to $1,000,000, you can make sure your salon is growing. And because we offer interest rates between 5% and 45%, along with terms of up to 36 months, you don’t have to pay a fortune to get a loan.
If you’ve been in business for two months and have monthly revenue of $8,000 or more, you can get a business loan from Shield Funding. You don’t even have to have great credit to make it happen. We work with salon owners who have credit ratings of 500 or higher.
No matter what you need to run or grow your salon business, small business term loans will help you get there.
Most traditional lenders require that you put up collateral to secure a business loan. That usually means you’re putting your business on the line, which isn’t a great feeling. Our loans are unsecured, so you don’t need to worry about having a specific amount of collateral.
This is especially great for people who haven’t been in the business a long time and might not have built up a lot of infrastructure for collateral.
Most traditional lenders won’t give you a loan if you don’t have great credit. Because we’re an alternative lender, we can offer loans to salon owners with less-than-stellar credit ratings.
As long as your credit rating is above 500, we can work with you. You can still secure up to $1,000,000 in funds with terms of up to 36 months. And with interest rates from 12–45%, you won’t feel like you’re being taken advantage of.
As long as you’ve been in business for two months and have $8,000 of monthly revenue, you can qualify for one of these loans.
These loans are designed for covering the day-to-day expenses of running a salon. Things like payroll, keeping products in stock, equipment maintenance, and other expenses can add up fast, especially if you’re hit with an unexpected utility bill or an important piece of equipment breaks down.
Like term loans, you’ll need to have two months of business under your belt to qualify. Working capital loans also require a credit rating of 650 and a minimum monthly income of $10,000.
If you meet those conditions, you can get up to $1,000,000 at a rate between 9% and 45%. These loans can be repaid on terms of up to 36 months. Whatever kind of expenses you’re looking to cover, a working capital loan can help.
Small Business Loans for Women
Not every salon owner is female, though most are. And that shouldn’t make it more difficult to get a loan. Salon owners are hard-working, business-savvy, and successful. So we’re proud to offer small business loans for women on similar terms to our standard term loans.
That means women can get up to $1,000,000 to help them run and grow their salon businesses.
Financing Tips for Your Salon Expansion or Growth
How might you use that money? Or any loan, for that matter? Here are some of the things that salon owners need to deal with on a regular basis:
Outfitting Styling (and Other) Stations
The more styling stations your salon has, the more customers you can serve at one time. And that means more revenue during busy periods. But a styling station can be costly to set up.
You’ll need a styling chair, mirror, drawers, tool compartment, and an electrical outlet. If you want to provide any supplies like a hair dryer, that will add to the cost. Some thrifty salons can get a styling station set up for $200, but many others will find that they’ll pay $1,000 per station.
And there are plenty of other stations you’ll want to set up. Shampoo stations average around $600. A drying station will run you another $300. If you want to provide carts or trolleys, you could spend another couple hundred bucks.
Want to offer spa services? You’re looking at even more expensive equipment. A facial machine could cost you $3,000—and you’ll probably want to supplement that with more equipment.
You might add these stations and features to your salon gradually. But if you’re looking to open a new location or significantly expand your current one, you’ll want to make an investment in your styling stations.
Finding the Right Location
Location is notoriously important in the food service industry, but it’s almost as crucial for salons. You might not live and die by your foot traffic, but your location may determine how much you can charge for your services.
A more expensive neighborhood is likely to be more willing to pay top-tier prices for top-tier hairstyling. An up-and-coming neighborhood might not be able to support those prices. And your part of the country makes a big difference.
You’ll have to rely on your intuition as well as any information you can gather from other salon owners here. But in the end, you’ll pay for your location.
An expensive downtown location might cost you $4 per square foot or more, while a suburban mall salon in a more affordable part of the country could be $1 or less.
If you open a 1,500-square-foot salon, that’s a difference of $5,000 per month. You probably won’t be deciding between these two locations, but it serves as an important lesson: you get what you pay for when it comes to location. And until your salon is up and running, you may need some financial help to cover that rent.
There’s nothing more controversial in the salon world than payroll models. Do you charge a commission on the services sold? Rent out booth space? Use some sort of hybrid model? It’s totally up to you.
But getting it right is important. You need to bring in enough money from your stylists that you can afford to pay your bills and make a profit. Either model will work.
Unfortunately, salon owners sometimes make mistakes when choosing how to pay employees. And that can put you out of business. Especially if you’re not accounting for other expenses, like hiring receptionists and paying for supplies used by stylists.
It’s best to take time to calculate the best model for your business up front. But if things go wrong—like several stylists earning overtime pay in a month—you may need to take a loan to cover the cost. It’s better than closing your business.
Stocking the Best Product
Not every salon sells product, but many find that they’re a good source of profit. Typical markup is 50%, leaving the salon owner with a solid profit margin. And you don’t have to share the earnings like you do with a stylist (unless, of course, you have a profit-sharing model on product as well).
But to sell enough product to make a profit, you’ll need to keep a variety of high-end options in stock. Shampoo, conditioner, styling products, and combs and brushes can account for a solid portion of your profit.
If your salon provides other services, like manicures, pedicures, tanning, or skin care, you can retail product related to those services. That gives your customers even more options for giving you money. But you’ll need to pay to get those items in stock before you can start selling them.
Taking out a small business loan might make sense if you’re planning on creating a large retail area in your salon.
Whatever your aspirations are for your salon Shield Funding is a trusted business loan resource for more than a decade. Give us a call!