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A beauty salon loan is funding made available for the purpose of starting a business in cosmetology. Services offered include making aesthetic changes to the hair, skin and/or nails of clients.

Initial Expenses

Depending on local zoning requirements and space needed, it may be difficult to run a beauty salon at home. A beauty salon loan will probably be needed to cover the initial expense of renting a space and renovating it to suit your needs.

Basic equipment will also need to be purchased. The appropriate furniture will need to be in place, such as styling chairs, tables and chairs for nail work, a washing basin, a facial chair/bed, and a receptionist desk and chair. You will also need to purchase tools, instruments and supplies that you will use such as manicure sets, aprons, hair scissors, shampoo, etc.

It is also important to consider the costs of licensing, insurance and marketing.

The cost of startup will depend on the size of an operation that you are interested in running. The expense of opening up a beauty salon can be as little as $10,000 or as much as $100,000 for a large, full-service salon.

Ongoing expenses

It may take time to establish a large enough client base to cover ongoing beauty salon expenses. You will need to cover rent, employees (stylists, nail technicians, facialists, make-up artists, etc.), and utilities (lights, heat, air conditioning, etc.). If you decide to sell beauty products, you will need to invest in an inventory in addition to keeping all of the supplies that you will need to keep available (creams, shampoo, nail polish, etc.).

It is important to have enough savings to cover these ongoing costs, or to borrow enough money to pay for these expenses at least for the first few months.

Some important items to know to finance your are:

  1. How much money do you really need?
  2. Do you know your exact FICO scores?
  3. How do you plan to repay the loan?
  4. Who is going to borrow the money? You personally or another legal entity?
  5. What assets can you pledge to secure your loan?

Make sure you know you are pre-qualified before you apply. Our free business capital search engine will allow you to see the funding programs and lenders that are available to you and then you choose those you wish to apply for.

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