The best line of credit for your salon or barbershop depends on your track record. Merchant Fund Express is the best option if you don't qualify for a line yet and need fast capital, from FICO 500; Bluevine if your salon is an LLC or corporation with 12 months, even with an ITIN; OnDeck if you have a year and $100,000 in annual sales; Credibly if you've been open 6 months or more; an SBA line for the lowest cost if you qualify; and Square Loans if you take payments through Square and prefer to repay from sales.
A salon has a cash flow all its own: strong weeks before holidays, graduations and weddings; a slower January and parts of summer; product bought in advance; and chairs, shampoo bowls or dryers that break without warning. A line of credit used well covers those ups and downs without you having to take out a new loan every time.
Key takeaways
- A line of credit lets you use only what you need, repay and draw again; it's ideal for a salon's ups and downs.
- Bluevine offers lines up to $250,000; it asks for 12 months, $10,000 a month, a 625 FICO and an LLC or corporation, and accepts an ITIN plus EIN.
- OnDeck offers lines from $6,000 to $200,000; it asks for 1 year, $100,000 in annual sales and a 625 FICO.
- Many barbershops are sole proprietorships: Bluevine doesn't offer its line to them, so check your structure before you apply.
- If you rent out booths, your revenue looks different from a commission salon's; explain it when you apply.
- Open the line during your busy season, when your numbers look best, so it's ready for the slow months.
The best options for salons and barbershops, ranked
- Merchant Fund Express (recommended funder). Reviews your sales and deposits, not just your credit, with decisions that often arrive in 2 to 4 hours. Amounts from $5,000 to $5,000,000, credit from FICO 500 and, in most cases, no collateral. It accepts applicants with an ITIN (no SSN needed) and offers Spanish-speaking support. It's the option when you don't meet a line's requirements yet (little time in business, credit under 625 or a business in your own name) and you need capital for product, a repair or the season.
- Bluevine (line of credit). Up to $250,000, with a decision in as little as five minutes according to its site. It asks for $10,000 in monthly revenue, a 625 FICO, 12 months in business, a corporation or LLC and good standing with your state. It doesn't offer this line to sole proprietors or to businesses in Nevada, North Dakota, South Dakota or U.S. territories. It accepts an SSN or ITIN, plus an EIN (checked October 2026).
- OnDeck (line of credit). $6,000 to $200,000, with 12-, 18- or 24-month repayment terms and weekly or monthly payments. It asks for one year in business, $100,000 in annual sales, a 625 personal FICO and a business checking account. It charges no annual, monthly or draw fees on its line (checked October 2026).
- Credibly (line of credit). Offers lines of credit up to $300,000, among other products. Its general published requirements are 6+ months in business, $15,000+ in monthly revenue and a 500+ credit score (checked October 2026). Confirm the line's specific requirements with them.
- SBA line (SBA Express or CAPLines). Through a participating bank, the SBA backs revolving working capital lines. If you qualify they usually cost less than online options, but they take weeks and, since March 1, 2026, require 100% of owners to be U.S. citizens or U.S. nationals.
- Square Loans. Not a line of credit, but many salons take payments through Square. If you receive an invitation, offers range from $100 to $500,000 and are repaid with a fixed percentage of your daily Square sales (checked October 2026).
How we chose
We don't give ratings or scores. We compare every option on the same criteria: speed, minimum time in business, minimum credit, ITIN acceptance, documents, amounts and collateral. Each company's details come from its official site, checked in October 2026, and they can change; confirm them before you apply. Read the full method in how we rank business funding options.
If you'd like to understand how a line of credit works for a salon first (draws, interest and payments), read our guide to a business line of credit for salons.
Comparison table
| Option | Minimum time | Credit | Amounts | Business structure |
|---|---|---|---|---|
| Recommended funder | Reviewed based on your sales | From FICO 500 | $5,000 to $5,000,000 | Reviewed case by case |
| Bluevine (line) | 12 months | 625+ | Up to $250,000 | LLC or corporation only |
| OnDeck (line) | 1 year | 625+ | $6,000 to $200,000 | Business checking account |
| Credibly (line) | 6 months (general requirement) | 500+ | Up to $300,000 | Business bank account |
| SBA line | Varies by bank | Good, with history | Varies by program | Owners 100% citizens or nationals |
| Square Loans | By invitation | Not published as a requirement | $100 to $500,000 | Take payments with Square |
What to use the line for in your salon or barbershop
- Product and inventory. Color, treatments, retail products. Buying in bulk before the busy season can get you a better price.
- Slow season. If January or part of summer is slow, the line covers rent and payroll until clients come back. Repay it as soon as sales pick up.
- Urgent repairs. A shampoo bowl, a hood dryer or the air conditioning can't wait. For expensive new equipment, compare with equipment financing for salons, which usually costs less.
- Hiring a new stylist or barber. It covers the first weeks while they build a clientele.
- A small remodel. Paint, mirrors, lighting or a new station. For a big remodel, a term loan is a better fit.
What doesn't make sense: using the line for personal expenses or to cover losses that repeat every month. A line is for ups and downs, not for propping up a business that doesn't cover its costs.
Details that change approval for salons and barbershops
- Business structure. Many barbershops are in the owner's name as a sole proprietorship. Some lines, like Bluevine's, are only offered to LLCs and corporations. If you're thinking about formalizing, talk to your accountant.
- Booth rental vs. commission. If you rent out chairs, your revenue is the rent stylists pay you, not the total from services. Explain that to the funder so they understand your numbers.
- Tips and cash. A lot of a barbershop's money comes in as cash. Deposit it into the business account; what isn't on your statements doesn't count.
- Several payment apps. If you take payments through Square, Zelle, Cash App and cash, route everything into one business account. That way your full sales show.
- Current licenses. Your shop license and your stylists' licenses should be current; some funders ask for them.
For more ways to fund a shop, read our guide to barbershop funding strategies.
How to use the line without it becoming permanent debt
The risk with a line of credit is that because it's always there, it gets used for everything and never repaid. These simple rules help your salon use it well:
- Give every draw a purpose. Before drawing money, write down what it's for and where the repayment will come from: "December product, repaid from December sales."
- Repay the season within the season. If you used the line for product or to get through January, repay it as soon as the strong weeks return. If the balance hasn't dropped in three months, something isn't working.
- Don't use it for fixed monthly expenses. If you need the line to pay rent every month, the problem is your pricing, your chair occupancy or your costs. Look at that first.
- Leave room. A maxed-out line won't help in an emergency. Try to keep part of it available for the next dryer that breaks.
- Review the line's statement every month. Confirm automatic payments, the balance and the interest. An error caught early is easy to fix.
Used well, a line also helps build your business's credit history, which opens cheaper options for your next remodel or your second location.
How to prepare your application
- Business bank statements for the last three to six months.
- Monthly reports from your booking or payment system.
- Owner ID, SSN or ITIN depending on the funder, EIN and LLC or corporation documents.
- Shop license and lease.
- Recent tax returns, especially for a bank or the SBA.
One tip: apply for the line when your numbers are strong, for example after December or graduation season, not when you already need it. You'll get better terms and have it ready for the slow season.
If you don't qualify for a line yet, you can apply with Merchant Fund Express; it's free and doesn't affect your credit. Meanwhile, keep depositing everything into the business account so you can qualify for a line later. Leer en español.
Frequently asked questions
What is the best line of credit for a barbershop?
It depends on your history and structure. If your barbershop is an LLC or corporation with 12 months and a 625 FICO, Bluevine and OnDeck are good options. If you operate in your own name or haven't been open long, sales-based financing like Merchant Fund Express is usually more accessible.
Can I get a line of credit for my salon with an ITIN?
With some companies, yes. Bluevine says on its site that it asks for an SSN or ITIN, plus an EIN, for its line of credit, if you're an LLC or corporation and meet its other requirements. SBA lines aren't an option if any owner isn't a U.S. citizen or national. For questions about your status, talk to an immigration attorney.
Do I need an LLC to get a line of credit for my salon?
Not always, but it helps. Some lines, like Bluevine's, are only offered to LLCs and corporations. Other options review businesses in the owner's name. Forming an LLC also separates your personal finances from the salon's; check with your accountant.
Should I use a line of credit or a loan to buy chairs and equipment?
For expensive equipment that lasts years, equipment financing or a term loan is usually better, because the payment is spread over more time. A line of credit is better for expenses that rise and fall, like product, the slow season or small repairs.
Does booth rental income count as revenue?
Yes, it's revenue for your business, but it looks different from service revenue. Deposit booth rents into the business account and explain to the funder how your salon works, so they understand why your deposits are steadier and sometimes smaller.
How long does it take to get approved for a salon line of credit?
With online options, it can be quick: Bluevine says it decides in as little as five minutes, and OnDeck checks your eligibility without affecting your credit. SBA lines through a bank take weeks. Having your bank statements ready speeds up any option.