The best equipment financing for a salon or barbershop depends on what you're buying and how long you've been open. For a chair or shampoo bowl from a supplier, the supplier's own payment plan or a lease is usually the most direct route. If you want to equip, remodel and cover opening costs all at once, Merchant Fund Express, our recommended funder, reviews your sales and deposits and often decides in 2 to 4 hours. If you have good credit and years in business, a bank, a credit union or an SBA microloan can cost less.
Below you'll find the ranked list, a comparison table and a guide to choosing based on your model: a salon with stylists on payroll, a barbershop with booth rent, a nail salon or an esthetics studio.
Key takeaways
- For one specific piece of equipment, the supplier's plan or a lease is usually simplest.
- For equipment + remodel + opening costs all at once, sales-based financing is more flexible.
- According to the SBA, its microloans (up to $50,000) can be used for furniture, fixtures, machinery and equipment.
- If your salon collects booth rent, those payments need to land in the business account to count.
- Don't finance over a long term what you'll replace soon, like technology or design trends.
- Test the payment against your slow month, which for many salons is January or February.
The best equipment financing options, ranked
- Merchant Fund Express (recommended funder). Best for salons and barbershops with steady sales that need more than a single piece of equipment: chairs, mirrors, lighting, the remodel and product inventory at the same time. It reviews your sales and deposits, not just your credit; it works with credit from FICO 500, funds $5,000 to $5,000,000 and doesn't require collateral in most cases. It also offers Spanish-speaking support and accepts applicants with an ITIN, no SSN needed.
- Equipment supplier financing. Best if you're buying hydraulic chairs, shampoo bowls, dryers or pedicure stations from a supplier that offers payment plans. It's fast because it's all part of the same purchase. Compare the cash price with the financed price.
- Equipment leasing. Best for equipment that loses value quickly or that you want to upgrade every few years, and when you'd rather have a low upfront payment. At the end you can return it, renew it or buy it, depending on the contract.
- Bank or credit union equipment loan. Best if you have good credit, at least two years of tax returns and a relationship with your bank. It's usually among the cheapest options, but it takes longer.
- SBA microloan or CDFI. Best for smaller purchases. The SBA says its microloans go up to $50,000, can be used for furniture, fixtures, machinery and equipment, and carry a maximum term of seven years. They're made by community organizations that also provide coaching.
- Business credit card. Best for shears, clippers, flat irons or products, as long as you pay the balance in full every month.
Comparison table
| Option | Speed | What it covers | Collateral | What matters most |
|---|---|---|---|---|
| MFE (recommended) | Decisions often in 2 to 4 hours | Equipment, remodel, inventory and expenses | Not in most cases | Sales and deposits; from FICO 500 |
| Equipment supplier | Days | Only the equipment you buy from them | The equipment | Your credit and the amount |
| Leasing | Days | The leased equipment | The equipment (owned by the lessor) | Your credit and time in business |
| Bank or credit union | Weeks | Equipment and sometimes improvements | The equipment and sometimes more | Credit, tax returns and financials |
| SBA microloan / CDFI | Weeks | Furniture, fixtures, equipment, working capital | Per the organization | Each organization's criteria |
| Business card | Days | Small purchases | No | Your credit |
How we chose: no ratings or scores. We ranked on speed, time in business, minimum credit, ITIN acceptance, documents, amounts and collateral. The full method is in how we rank business funding options.
What equipment to finance, and how
Not every piece of salon equipment should be financed the same way. A simple rule: the financing term shouldn't be longer than the useful life of what you're buying.
| Equipment | Typical useful life | Option that usually fits |
|---|---|---|
| Hydraulic chairs, barber chairs, shampoo bowls | Long, with good maintenance | Supplier, equipment loan or sales-based capital |
| Pedicure stations with plumbing | Long | Supplier or equipment loan |
| Dryers, steamers, sterilizers | Medium | Supplier, lease or a card if it's small |
| Esthetics devices or technology | Short to medium; goes out of date | Lease |
| Remodel, lighting, signage | Long, but can't be resold | Sales-based capital, bank or SBA |
| Shears, clippers, flat irons | Short | Business card paid off monthly |
The remodel is where most owners get stuck: an equipment supplier won't finance it and it has no resale value. That's why, if you're opening or renovating, financing that covers the whole project makes sense. For a deeper look at the product itself, read how to get beauty salon equipment financing.
Booth rent, commission or payroll: how it affects your application
Salons and barbershops run on different business models, and a funder reads them through your deposits:
- Booth rent. Stylists or barbers pay you weekly or monthly rent and charge their clients themselves. Your deposits are smaller but very steady. Make sure all rent payments go into the business account, not into your pocket as cash.
- Commission or payroll. The salon collects for every service and pays its team. Your deposits are higher, but so are your expenses. The funder will see both.
- Hybrid model. Some chairs on rent and others on commission. Explain this in your application so it doesn't look like your sales swing from month to month.
In all three cases, card, transfer and payment-app collections help because they leave a clear record. If part of your sales is cash, deposit it.
For example, picture a fictional barbershop with six chairs: four barbers pay weekly booth rent and two work on commission. The owner wants to replace all six chairs and add a shampoo station. If rents arrive by transfer every Monday and commission services are paid by card, the bank statements show a clear, steady pattern, which is exactly what a funder wants to see. If half the rents are collected in cash and never deposited, the same business looks much smaller. Before you apply, clean up how you collect for a few months. It's the cheapest change you can make to get a better offer.
How to choose based on your situation
| Your situation | Where to start |
|---|---|
| Replacing two or three chairs | Supplier plan or lease |
| Opening or remodeling and need everything at once | Sales-based capital or, if you qualify, SBA |
| The shampoo bowl or compressor broke | Fast sales-based capital |
| Open only a few months | Supplier with a down payment, or a microloan |
| Good credit, years open, no rush | Bank or credit union |
| Second location | Bank, SBA or sales-based capital depending on urgency |
If what you need is flexible capital all year long, look at a business line of credit for salons. For a broader view of every funding path in this industry, see beauty salon and barbershop funding.
Common mistakes when financing salon equipment
- Buying more chairs than you can fill. An empty chair doesn't pay its financing. Count how many real appointments you have each week.
- Financing technology over a long term. If you'll want new equipment in three years, don't sign for longer than that.
- Ignoring installation. Shampoo bowls and pedicure stations need plumbing and electrical work; include it in your budget.
- Forgetting the season. December, quinceañeras and wedding season lift your sales; January usually drops. The payment has to survive January.
- Not comparing the cash price. A "zero down" payment plan can carry a higher total price.
- Signing without checking insurance. Some equipment contracts require you to insure it; get a quote for that policy before you sign.
- Using equipment money for something else. If the financing is for chairs, buy the chairs. Diverting the money to monthly bills leaves you with the debt and without the equipment that was supposed to pay for it.
How to apply
- List what you need with quotes: equipment, installation, remodel, products.
- Gather three to six months of business bank statements.
- Have your salon or barbershop license and your lease ready.
- Get offers in writing and compare total cost and payment frequency.
- Run the slow-month test before you sign.
If you want to equip or remodel your salon with one fast financing, you can apply with Merchant Fund Express. Applying is free and doesn't affect your credit. Prefer Spanish? Leer en español.
Frequently asked questions
Can I finance equipment for a salon that hasn't opened yet?
It's harder, because you don't have sales to show. The most common options are a supplier payment plan with a down payment, an SBA or CDFI microloan, or a personal loan. Sales-based financing usually asks for several months of business deposits, so it fits better once you're open.
Should I buy or lease salon chairs?
Good-quality chairs and shampoo bowls last for years, so buying usually makes sense if you'll use them for a long time. Leasing makes more sense for equipment that goes out of date fast or if you need a low upfront payment. Compare the total cost of both in writing.
Can I get barbershop equipment financing with an ITIN?
Some suppliers and funders accept an ITIN and others require an SSN, so ask before you apply. Merchant Fund Express accepts applicants with an ITIN. A business account with steady deposits and a current license help a lot. If you have questions about your immigration situation, talk to an immigration attorney.
Does equipment financing cover a salon remodel?
Usually not. Equipment financing covers the equipment that secures the loan. A remodel, lighting or signage can't be repossessed, so they're financed with working capital, a bank loan or an SBA loan. Many owners combine two options to cover the whole project.
What if my stylists pay booth rent in cash?
If you don't deposit that rent into the business account, the funder can't see it and your income looks lower. Ask your stylists to pay by transfer, or deposit the cash as soon as you receive it. Several months of recorded rent payments strengthen any application.
How fast can I get salon equipment financing?
It depends on the option. A supplier plan or a lease usually takes days; with our recommended funder, the decision often comes in 2 to 4 hours. A bank loan or a microloan usually takes weeks because they review more documents.