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.
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.
| Expense Area | Estimated Cost |
|---|---|
| Lease or renovation | $10,000 – $75,000 |
| Barber chairs & stations | $500 – $3,000 per unit |
| Equipment & tools | $5,000 – $20,000 |
| Technology & software | $1,000 – $5,000 |
| Inventory (products) | $1,000 – $10,000 |
| Marketing & signage | $1,000 – $8,000 |
| Licensing & insurance | $500 – $3,000 |
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.
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.
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.
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.
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.
Define your funding goal (equipment, expansion, cash flow, etc.)
Calculate how much capital you need
Check your credit score (ideally 650+)
Prepare a business plan with revenue projections
Compare lenders, terms, and loan types
Gather documents: tax returns, bank statements, business license
Apply and use funds responsibly to drive ROI
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.
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
SBA Lender Match Tool
SCORE Free Mentorship
Barbershop Connect – Community and tools for barbers
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.