How to Find Financing for a New Beauty Salon

By Dean Laming on December 25th, 2023

If your dreams include owning a successful beauty salon, you’ve likely crunched numbers on costly essentials like real estate, equipment, inventory and staffing. Start-ups require significant capital most entrepreneurs self-fund through savings, loans and other tactics.

Navigating how to finance a new spa or hair salon feels daunting between picking ideal funding sources and qualification hurdles. But with smart strategising, you can access necessary capital making your vision for the salon a reality.

Know Your Start-Up Costs

Building a business begins with estimating expenses ahead to calculate funding needs accurately across categories like:

  • Salon lease – The space itself, from occupancy fees and deposits to utility connections and building improvements.
  • Equipment and furnishings – Speciality tools (e.g. salon chairs), shelves, computers and registers add up faster than expected.
  • Opening inventory – Hair colouring care items and other product lines require significant upfront investment to stock a full range meeting client expectations.
  • Licences, permits, insurance – Various fees and policies must be funded before opening doors to legally and safely operate.
  • Buildout and decor – Expenses like flooring, lighting, counters, paint and signage create your desired atmosphere.
  • Professional services – Lawyers, contractors and branding help may be needed, especially if renovating rather than moving into a new space.

Without accounting for everything, projected budgets underestimate true costs. Create detailed plans to avoid funding shortfalls.

Financing Options for New Salons

With numbers established, compare financing structures determining the best funding for your situation:

Personal Funds

Self funding through personal savings is most cost effective as it avoids interest. Many launch businesses primarily from this.

Business Loans and Lines of Credit

Financing from banks provides another avenue requiring qualification through strong personal credit scores and sufficient revenue projections showing repayment ability. Expect thorough vetting.


Donation-based community crowdfunding campaigns through platforms like Kickstarter works for some niche salon concepts, especially when founders have existing influence drumming up support.

Optimise Qualification Positioning

Lenders assess risk level before extending capital. Strategically better your chances with tactics like:

  • Boost personal/business credit ratings – Pay all current debts on time and resolve errors on credit reports. Lenders check scores determining perceived responsibility.
  • Showcase industry experience – Detail all specialised training and past salon roles undertaking applications to prove capability and commitment to beauty services.
  • Provide realistic projections – Factoring in local demographics and competition, build 5 year forecasts on client base and revenue backed by market research.
  • Have collateral – Banks often require guaranteeing a portion of financing plus secured business assets in case of failure to repay. Collateral lowers perceived risk.

Protect Investments with Insurance

After successfully accessing start-up financing, secure your salon for the long run through speciality insurance supporting operational needs as they evolve.

Salon Saver offers new beauty ventures protection from unexpected risks related to treatments, chemicals and high theft industries. Our tailored beauty salon insurance offers affordable, comprehensive protection as you work toward profitability.

Whether needing unique coverage for intense laser treatments, colour correction gone awry or combating depleted inventory from poor stock controls, Salon Saver has your back. Contact us today to find out more about mitigating risk to keep hard-won financing securely invested in amazing client experiences.

Dean Laming

Dean Laming is a Chartered Insurance Broker with more than 25 years insurance experience. Through various underwriting, operational and management roles, Dean has built up extensive knowledge of the hair and beauty sector and is now Managing Director of Salon Saver, part of the wider Henry Seymour Group.

All articles by Dean Laming

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