Loans for Barbershops: Growing Your Business Successfully

Running a barbershop is more than giving great fades and clean shaves—it’s about creating a welcoming space, managing appointments, selling products, and growing a loyal client base. Whether you're just starting out or ready to expand, one thing remains constant: growth requires capital. Thankfully, there are a variety of loans for barbershops designed to help you take your business to the next level.

In this guide, you'll learn which types of financing best suit your needs, how to qualify, and how to use funding to grow your barbershop successfully.

Why Barbershops Seek Business Loans

Barbershop owners take out loans for many strategic reasons, including:

• Expanding into a larger location or opening a second shop

• Purchasing new barber chairs, clippers, or grooming equipment

• Upgrading interior design to attract more clients

• Launching online booking systems or POS software

• Hiring new barbers or front desk staff

• Buying inventory for retail sales (beard oils, shampoos, etc.)

• Marketing and advertising campaigns

With the right funding, your barbershop can evolve from a local favorite into a go-to grooming destination.

How Much Does It Cost to Open or Expand a Barbershop?

Top Loan Options for Barbershop Owners

1. SBA 7(a) Loan

The U.S. Small Business Administration offers one of the most flexible and affordable financing options.

• Loan amounts up to $5 million

• Low interest rates and long repayment terms

• Can be used for equipment, expansion, working capital, and more

• Requires solid credit and financial documentation

• Learn more at SBA.gov

Best for: Established shops planning to expand or open a new location.

2. Equipment Financing

If you need to upgrade your stations, clippers, or waiting area furnishings, equipment financing is ideal.

• Loans cover up to 100% of the equipment value

• Equipment acts as collateral

• Fixed monthly payments

• Terms typically range from 2 to 7 years

Best for: Upgrading chairs, sinks, grooming tools, or installing air purifiers and music systems.

3. Working Capital Loans

Short-term loans that provide quick access to cash for everyday business needs.

• Loan amounts range from $5,000 to $500,000

• Repayment terms from 6 to 24 months

• Faster approval than SBA loans

• Higher interest rates, but more accessible

Best for: Inventory restocks, payroll, repairs, or marketing campaigns.

4. Business Line of Credit

Access funding as needed without taking a lump sum all at once.

• Credit limits up to $250,000+

• Pay interest only on what you use

• Reusable after repayment

• Can be approved in days

Best for: Ongoing cash flow support or covering slow months.

5. Barbershop-Specific Lenders and Grant Programs

Some lenders specialize in beauty and grooming industry financing. You may also qualify for:

• Minority-owned business grants

• Veteran-owned or women-owned business programs

• Local economic development loans

• Barber-specific contests or business pitch competitions

Check with your local chamber of commerce, barber associations, and SBA local assistance offices.

7-Step Checklist: How to Get a Loan for Your Barbershop

1. Define your funding goal (equipment, expansion, cash flow, etc.)

2. Calculate how much capital you need

3. Check your credit score (ideally 650+)

4. Prepare a business plan with revenue projections

5. Compare lenders, terms, and loan types

6. Gather documents: tax returns, bank statements, business license

7. Apply and use funds responsibly to drive ROI

Example: A Local Barber Doubles Revenue with Smart Financing

An independent barber in Atlanta used a $35,000 working capital loan to renovate his shop, add two more stations, and hire an apprentice. He also launched a referral program and online booking platform. Within 6 months, his shop doubled weekly foot traffic, increased retail sales by 40%, and maintained a 5-star rating across Google and Yelp.

Mistakes to Avoid When Financing a Barbershop

• Borrowing more than you need: Focus on essential upgrades with proven ROI

• Not reviewing loan terms carefully: Watch for high APRs and prepayment penalties

• Neglecting cash flow forecasting: Make sure your business can handle loan payments

• Skipping lender research: Always compare offers and check reviews

Helpful Resources for Barbershop Owners

• National Association of Barbers

• SBA Lender Match Tool

• SCORE Free Mentorship

• Barbershop Connect – Community and tools for barbers

Conclusion: Invest in Your Craft and Grow with Confidence

Great barbers build more than clean fades—they build community, trust, and a brand. Whether you're ready to expand, upgrade your space, or sharpen your competitive edge, securing the right business loan helps you invest in your vision without sacrificing stability.

With the right funding strategy, your barbershop can scale, thrive, and leave every client looking (and feeling) their best.