Quick answer
Hairdressers, barbers and salon owners can borrow $20,000 to $50,000 secured on property, with no formal valuation and no cash flow evidence. It covers fit-out, stock, chairs and wages around a busy or quiet period, and funding can follow in as little as 24 hours once approved.
Key points
- Loans of $20,000 to $50,000 secured on property.
- Chairs, stock, fit-out and wages covered quickly.
- No bank statements or cash flow evidence.
- Funding in as little as 24 hours once approved.
- Typical use
- Fit-out, chairs, stock, wages
- Security
- Property equity
- Loan size
- $20,000 to $50,000
- Speed
- As little as 24 hours once approved
A busy salon is easy to love and hard to fund. Chairs and basins wear out. Colour and product stock is bought by the carton. Stylists and apprentices are paid weekly. Rent in a good street is high. And while takings can look healthy on a Saturday, the money has usually been spoken for by the following Tuesday. When something big comes up, a chair replacement, a refit or a new location, there is rarely a spare $30,000 in the account.
The salon’s cash cycle
Product and colour stock. Professional product is bought in bulk to hold margin, and suppliers want payment on account.
Staff wages and awards. Stylists, apprentices and reception staff are paid weekly, with penalty rates on weekends and public holidays.
Equipment and fit-out. Chairs, basins, mirrors, dryers and tools need replacing, and a refit can mean weeks of reduced trade.
Rent and outgoings. Prime retail rent is a major fixed cost and rises on a fixed schedule.
Seasonal peaks. Weddings, formals and Christmas drive big weeks, followed by quiet ones in winter.
A cash flow lender sees uneven deposits and declines. A secured lender looks at the property behind the business.
What a salon loan can cover
- A refit, new basins or new styling chairs.
- A large colour and product order ahead of a busy period.
- Stylist and apprentice wages across a quiet month.
- A deposit on a second location or a lease extension.
- A new booking system and point-of-sale hardware.
- Marketing for a launch or a rebrand.
- A BAS or PAYG bill that is due.
How the loan works
We write loans of $20,000 to $50,000 backed by property, capped at 80% for residential and 70% for commercial once debts are deducted. You do not need a valuation to start or cash flow evidence, and approval can lead to funding within 24 hours. See our page on unsecured business loans if you are weighing up options.
A worked example
A barbershop owner is opening a second shop. Chairs, basins, mirrors and flooring come to $26,000, a deposit and the first month of rent are $9,500 and four new barbers will need to be paid before the doors open to clients. The owner has a unit worth around $640,000 with $300,000 owing. Drawing $40,000 on the strength of the property settles the fit-out, the rent and the first fortnight of wages, and prepaid interest for as long as three months ensures that repayments only begin once the new shop is trading. Treat the figures as an illustration. They are not an offer.
Tips for a steadier salon
- Take a deposit for colour work and long appointments.
- Track chair utilisation so you know when to hire or hold.
- Review product pricing twice a year as supplier costs rise.
- Offer prepaid packages in quiet months to bring cash forward.
- Set GST and PAYG aside from each payment as it lands.
Repayments
Think of it as two phases: up to three months of interest paid upfront, then a weekly repayment rhythm. Most salons repay from weekly takings and some refinance after a second location has settled in. Read prepaid interest and weekly repayments for the full picture, and ask what it costs to repay early.
Leases and landlords
Retail leases often have fixed annual increases and a make-good clause at the end. A fit-out loan can be sensible if the lease is long enough to earn it back, so check the term before you commit. Ask your landlord about incentives, such as a rent-free period or a fit-out contribution, and keep a copy of every agreement.
Costs salons forget
Insurance for public liability and professional indemnity, music licences, laundry, waste removal, booking software subscriptions and equipment servicing all take a share. A weekly reserve helps, and a short loan fills the gaps that remain.
Before you borrow
Work out what each chair earns. Take the weekly takings per stylist, subtract product, wages and a share of rent, and see what is left. A refit that adds one chair needs to earn more than the repayment on the loan that paid for it, so check that your diary can fill it. Ask your landlord for the remaining lease term in writing before you spend on fit-out, because a short lease limits how long you have to earn the money back. Finally, think about client habits: rebooking at the chair, prepaid packages and a quiet-day offer can lift weekly takings by more than any single piece of new equipment.
Apply
Add your numbers to the application form: amount, estimated property value, balance owing, state, monthly cash flow, business name. A person rings to talk it through. Everything here is general information, and any lending is subject to assessment.
Frequently asked questions
Can a salon owner borrow without cash flow records?
Yes. The loan is secured on property, so we do not ask for bank statements or proof of cash flow.
Can the loan cover a salon fit-out?
Yes. Basins, chairs, mirrors and flooring are common uses, and a fast loan can keep a refit on schedule.
What if I have a lot of card and cash takings?
We look at the property and how you will repay rather than at deposit patterns, which suits businesses with mixed cash and card takings.
Can I borrow to buy out a salon?
A loan of up to $50,000 can help with a deposit or a smaller buy-in. Larger purchases may need a different structure.
Do you lend to sole traders and chair renters?
Our loans are for companies, so a chair renter running through a company can apply. Ask us about your structure.