Business Loans for Hair Salons

Securing financial support is an essential step for many hairdressers looking to establish or expand their businesses.

Whether it’s to invest in new equipment, refurbish salon premises, or hire additional staff, obtaining a business loan tailored to the unique needs of the hairdressing industry can be pivotal.

With the constant demand for quality services and the ever-evolving trends in the beauty sector, access to capital can empower hairdressers to realise their ambitions, enhance their services, and ultimately thrive in a competitive market.

What are Business loan for hair salons?

Business loans for hair salons serve as vital lifelines for salon owners seeking financial assistance to sustain and grow their establishments.

These loans provide the necessary funds to cover various operational expenses such as rent, utilities, inventory, and staff wages. Additionally, they can support investments in salon upgrades, equipment purchases, marketing campaigns, and training programmes to stay competitive and meet the evolving demands of clientele.

With flexible repayment terms and tailored financial solutions, business loans for hair salons enable owners to navigate cash flow challenges, seize growth opportunities, and foster long-term success in the vibrant and dynamic beauty industry.

Different types of salon financing?

There are a number of types of loans that hair salons can access in order to develop their business, each type of finance offers a differs type of support and all come with their own pros and cons.

Merchant Cash Advance

This type of finance is the new guy on the block for funding practices. A merchant cash advance for hair salons will only work if you take payments via card sales. This option allows you to receive an amount of money in return for a small percentage of your salons future debit and credit card sales.

It is easy to set up and hassle free. Lenders work directly with your card terminal provider to deduct future payments, so there is no technical knowledge needed.

hairdressers can access between £5,000 and £200,000 with this product. The business cash advance is a perfect funding solution to salon business owners, repayments are always nicely in sync with your business cash flow. This makes repayments easy to manage each month!

Equipment Financing

This type of business finance is also known as ‘Asset Finance’, it works best for the purchase of expensive equipment. Equipment Finance enables you to acquire an asset while paying for it in instalments over an agreed timescale, also know as the term. At the end of the term, you have the option to purchase the asset outright usually for a nominal fee of £10.00.

This is a perfect solution to cashflow as the cost of the of investment is spread over the life of the asset, making it easier to budget. Once the lender has been paid off, the full ownership of the equipment will be passed over to you. One down side is that if you fail to make repayments and default, the lender will reclaim the equipment being financed.

Unsecured Business Loans

Unsecured business loans for hair salons offer a fast and flexible way when you require cash for growth or to pay those unexpected bills. The come with repayment options of up-to 5 years and competitive rates of interest.

A down side to this type of finance is that lenders require to see at least a year in business, if not they may require a guarantor or security.

What can your hair salon business loan be used for?

Today’s beauty salon industry does not just revolve around haircuts, manicures, and spa. It is a way more than that due to branding and image perception of salons among customers.

Apart from product or services, salon owners need to work or focus on those areas which impress the customers. For example, the ambience  of the salon, the site location, kinds of equipments, etc. to bag that 5-start review or rating.

Business Loans for hairdressers come as a saviour and allow you to do whatever you want to do or invest in.

• Salon renovation and refurbishment – Develop a unique space or environment that immediately catches the customer’s attention. Make your salon area more peaceful and practical, show-off your products at one dedicated section, and many more.
• Go digital & smart – “Time is money” for everyone, no one wants to wait and wants to get immediately served. Improve online presence with a bespoke website. You can then take customers’ bookings online, send alerts on a new product or service launch, share discounts details, etc. Working smartly, above all, with the use of technology, allows no delays.
• Enhance Skills – To achieve good work from the team, you need to enhance or train them on skills. Niche specialisms from your team, for instance, will retain and attract more customers.

Business loans can get you the essential cash funds into your salon needs, thus giving you the freedom to work & grow.

Getting your salon ready for funding

Before diving into the realm of finance, it’s crucial to take a moment for reflection. Firstly, define precisely what you aim to fund. Borrowing an appropriate amount is key; ensure it aligns with your financial capabilities, keeping repayments manageable.

Assessing your business credit score is pivotal; even if it’s not where you wish it to be, PDQ Funding stands ready to assist. As a flexible finance provider, we cater to diverse businesses, regardless of credit score setbacks.

Preparation is paramount; gather your paperwork to expedite the application process smoothly. Lastly, opt for a loan company that resonates with your vision. Choose a lender like Capify, understanding your business intricacies and offering adaptable finance solutions tailored to your needs.

Benefits of using salon finance

Apply for a salon business loan

The application process has been designed to help busy professional hair dresses access finance quickly. Our hassle-free application should only take a few minutes and can be completed entirely online. Applying for hair salon business finance may at first feel intimidating. Once you have completed the first stage we will assign a business account manager that will be more than happy to help with our finance solutions.

Step 1:

Click to get a quick quote now button. We have a panel of expert direct lenders, we will need more information about your business to ensure we match you to the lender most suitable.

You will ask the following to be disclose:

• The name of your business
• The number of years trading
• Average monthly card sales or turnover
• The amount you’re looking to borrow to fund your vet practice

Step 2:

You will be redirected further down the page. We will also want to find out more about you as the business owner, so please tell us the following:

• Your title, first name and surname
• Position in the business
• Contact details / email and contact number

Step 3: Once you have provided us with these details, click to accept the terms and conditions and then click ‘get a quick quote’. Your application will then be processed and assessed by one of our approved business salon finance suppliers.

Step 4: One of our account managers will soon be in contact with you by either phone or email, to discuss the terms of your business loan or business cash advance agreement.

Step 5: Please make sure you take time to carefully read through all of the terms of agreement, then sign the relevant documents and return them back to the direct lender. You should then receive the funding to your account within five working days.

F.A.Q’s

How much money can I raise for my salon business

A salon can raise between £5,000 and £200,000 via our alternative business loan product.

Can I get a business loan for my salon if I have bad credit?

Business owners of salons and hair dresses in the UK can get business loans if they have bad or poor credit.

How to apply for a hair salon business loan?

Applying for a hair salon business loan is fast and simple. Simply make your application on line via our online portal and you will have a decision in principle within 24 hours.