Your client list is growing, your stylists are booked solid, and your space is starting to feel a little too cozy—that's when you know it's time to expand. Whether you're adding stations, opening a second location, or upgrading your equipment, salon expansion is an exciting milestone. But like any major business move, it requires funding.
This guide will walk you through the smartest loans and lease options for salon expansion, so you can grow your business without stretching your finances too thin.
Salon owners expand for many reasons:
Client demand outpaces capacity
Opportunity to move into a higher-traffic area
Plans to diversify services (e.g., spa treatments, nail services)
Hiring more stylists or specialists
Refreshing the brand with a more modern space
Typical expansion costs can include:
Leasehold improvements and interior renovations
Salon chairs, mirrors, shampoo stations, and lighting
Booking software and POS systems
New inventory and retail display shelves
Marketing for your expanded offerings
Additional licenses and insurance
Depending on your scope, salon expansion costs can range from $20,000 to over $250,000.
Backed by the U.S. Small Business Administration, SBA 7(a) loans offer salon owners access to up to $5 million in funding with competitive terms.
Uses: Buildouts, equipment, working capital
Terms: Up to 10 years for most uses; up to 25 years for real estate
Interest Rates: Typically 7%–9.5%
Requirements: Good credit, financial documentation, and a strong business plan
Learn more at SBA.gov
Best for: Large salon expansions or second-location launches.
Need to upgrade or buy more styling chairs, shampoo units, or dryers? Equipment financing lets you purchase high-cost assets without a huge upfront payment.
The equipment serves as collateral
Loan terms: 2–7 years
Often requires little to no down payment
Best for: Furniture, fixtures, tools, and salon-specific equipment.
A business line of credit offers flexible access to cash. You draw funds as needed and only pay interest on what you use.
Credit lines range from $5,000 to $250,000+
Replenishable after repayment
Good for recurring or unexpected costs
Best for: Gradual expansion projects or covering cash flow gaps during remodeling.
If you need a fast cash injection for immediate expansion needs, short-term working capital loans may be the answer.
Quick approval
Loan amounts from $10,000 to $500,000
Terms typically 6 to 24 months
Best for: Short-term remodels or marketing campaigns tied to expansion.
Some lenders specialize in the beauty industry and understand your specific needs. You may also lease equipment rather than buy it.
Equipment leasing reduces upfront cost
Maintenance often included in lease agreements
Salon finance companies offer tailored loan packages
Check out:
ShearShare
GreenSky for small businesses
Credibly
National Funding
If your expansion involves moving to a larger space or opening a second location, consider your lease terms carefully.
Negotiate tenant improvement allowances
Look for flexible renewal clauses
Consider subleasing if uncertain about long-term growth
Work with a commercial real estate broker who understands the salon industry
Define your expansion goals and cost estimates
Determine your ideal timeline and budget
Choose the right financing method based on your growth plan
Prepare documents: business plan, P&L, bank statements, credit history
Apply with lenders or leasing companies that specialize in service-based businesses
Finalize renovation, hiring, and marketing plans
Track return on investment (ROI) post-expansion to ensure profitability
A boutique hair salon in Austin, TX used a $75,000 SBA 7(a) loan to renovate their space, add two new stations, and install a new shampoo area. The owner also invested in upgraded booking software and a retail wall for product sales. Within 6 months, client wait times dropped by 40%, and monthly revenue increased by 80%.
Expanding too quickly: Make sure your current business is financially stable first
Underestimating soft costs: Include design fees, permits, and downtime in your budget
Choosing the wrong loan type: Match loan terms to the life of what you're buying (e.g., 5-year loan for 5-year equipment)
Skipping cash flow analysis: Ensure monthly loan payments are sustainable
SCORE Mentorship for Beauty Entrepreneurs
SBA Lender Match Tool
Salon expansion is a big leap—but with smart financing, it doesn’t have to be a risky one. Whether you’re remodeling, hiring, or opening a new location, the right loan or lease strategy allows you to scale sustainably. By planning ahead and choosing the right funding path, you can take your salon business to the next level without compromising your cash flow.