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Salon and Spa Business Loans

  • chFinance salons & spas in Canada. Up to $500,000
  • chRates from 7% APR
  • chApply online - Get offers from Top Lenders in Canada
up Last updated

June 10, 2025

up Written by:

Amy Orr

up Reviewed by:

Jenna West

Business Loans for Salons and Spas in Canada

The country of Canada is home to an impressive community of salons and spas that have been servicing Canadians for decades. With its diversity and humble communities, it is often a favoured location for salons and spas to set up operations. When looking for growth, many salon and spa owners often apply towards salon and spa loans. Smarter Loans can help you in this scenario as we work with a vast roster of salon and spa loan providers in Canada. They have worked with tons of salon and spas in Canada of all sizes, so our providers will definitely be able to sort out terms that work for both parties. These funds are useful in scenarios where salon and spa owner wish to upgrade their equipment, hire more employees, or simply pay off expenses on time.

We are proud to share that we have one of the fastest application processes in the industry. We exclusively host our application services online so that our applicants can choose when and where you can apply from. Now in minutes, you can enter an application form to one of our providers and in a matter of days, hear back on the results on that very application. We recommend in applying when your salon and spa has been in the industry for at least 6 months and is consistently making over $5000 a month in revenue. To see which providers we work with, check out the list below.

Hit the “Apply Now” to begin applying to one of our providers. If you can’t pick a provider, pre-apply at Smarter Loans instead. We will assign a team member of ours to help you find a salon and spa loan provider in Canada that can push your business to the next level.

Compare Lenders

AMOUNT
$5K - $500k
INTEREST RATE
Varies
TERMS
6 -12 Months
AMOUNT
$10K - $1.5M
INTEREST RATE
From 7.99%
TERMS
3 - 24 Months
AMOUNT
$5K - $500K
INTEREST RATE
Varies
TERMS
4 - 12 Months
AMOUNT
$500 - $300K
INTEREST RATE
From 8.39%
TERMS
2 - 24 Months
AMOUNT
$5K - $300K
INTEREST RATE
From 7.99%
TERMS
Fixed, 4 - 18 Months
AMOUNT
$5K - $800K
INTEREST RATE
From 7.99%
TERMS
6 - 24 Months
AMOUNT
$15K - $1M
INTEREST RATE
From 8%
TERMS
3 - 24 Months
AMOUNT
$5K - $500K
INTEREST RATE
From 9.99%
TERMS
2 - 24 Months
AMOUNT
$5K - $500K
INTEREST RATE
From 7.99%
TERMS
6 - 24 Months
AMOUNT
$5K - $50M
INTEREST RATE
From 7%
TERMS
5 - 96 Months
AMOUNT
$2.5K - $1M
INTEREST RATE
From 7.5%
TERMS
3 - 72 Months
AMOUNT
$5K - $2M
INTEREST RATE
From 7.99%
TERMS
2 - 36 Months
AMOUNT
$5K - $300K
INTEREST RATE
From 7.99%
TERMS
3 - 12 Months
AMOUNT
$3K - $5M
INTEREST RATE
From 13.99%
TERMS
1 - 60 Months
AMOUNT
$250 - $1M
INTEREST RATE
From 10%
TERMS
3 - 60 Months

Introduction

Beauty salons, hair salons and spas are amongst the most ubiquitous types of small businesses prevalent today. However, these types of shops can also be quite capital intensive as owners first have to invest into procuring supplies and equipment before actually initiating their operations. Thereafter, there are further operating and overhead costs which require healthy levels of cash flow to be able to service them. While this may sound overwhelming, there are multiple business financing options available to hairdressing businesses and spa businesses that can be availed to launch a successful beauty salon venture.

Business Loans for Salons

Steps prior to raising financing

Before obtaining a hair salon business loan, there are some questions that have to be asked by each business owner to themselves. These are:

  • How stable or consistent are your earnings?

    If the hairdressing business experiences seasonal trends i.e. significantly more people in one season than another, then a loan that has a fixed repayment amount each month may not be the best option, particularly if it’s a large sum of money to be repaid. In this case, a revolving loan facility (discussed later in this article) might be more suitable.

  • What percentage of expenses can be covered by cash already?

    The funding shortfall between revenues and expenses is what the business owner needs to identify on a month to month basis. Once this shortfall figure is clear, the owner can then choose from the suite of loan options to see which one best aligns with his/her goals.

  • What are your revenue projections?

    If the business has achieved stability in revenues and generates a consistent amount each month, then the business financing options available to such a business would be more versatile than a salon that has inconsistent revenue numbers. Inconsistency in this case is synonymous with risk.

  • What is the operating history of the business?

    A hair or beauty salon that has been around for 5+ years and has an established brand in the neighbouring region is a much stronger candidate for lending than a business that has only recently started up. More experienced owners offer better industry knowledge and management expertise as well beyond just the added financial strength and stability.

  • What is your credit like?

    A business with poor credit will likely gain lending terms that are unfavourable compared to a business with good credit. This can include anything from higher interest rates to a lower range of beauty salon financing options available to them.

Beauty Salon Business Loan Options

Once these questions have been adequately answered, it is time to look at the options on the market. While there are many types of commercial debt options available to hair and beauty salon businesses, the main ones are:

Canada Small Business Financing Program:

Similar to the USA’s Small Business Administration (SBA) loan, the SBFP is geared towards helping small businesses under $10 million in revenues raise capital. This is done by the SBFP sharing the risk with an actual lender, which provides and administers the loan. In the event of default though, the SBFP guarantees a certain percentage of the shortfall that cannot be covered by the borrower’s assets. Because they are backed by the government, there are several beneficial aspects about them including longer term lengths than commercially-provided loans, interest rate caps, and lower down payment requirements. In addition to that, all else being equal, SBFP-backed loans also have higher principal amounts than standalone commercial loans as commercial banks have strict risk parameters. That said though, there are downsides to this type of loan as well. SBFP-backed loans typically have a personal asset as collateral such as a home or car. If the borrower defaults on the loan, the lender then has a claim on that asset, which they can use to ensure they get repaid.

Credit Cards:

Just as consumers can make purchases on credit, businesses can do so too. With a business credit card, the business owner or authorized user can make a purchase from a merchant on credit. Thereafter, the business can then use its funds to pay off the credit purchases at the end of the month just like a normal credit card. The primary advantage for this type of credit option is better working capital management as cash then remains in the business for longer periods of time rather than being tied up in inventory or other purchases. The credit card can also be used to finance most operating expenses including inventory, overheads and wages. The disadvantages though are the same as a consumer credit card, which include high interest rates on overdue amounts, which can lead to a debt cycle.

Revolving Line of Credit:

A revolving line of credit (revolver) operates on a similar principle as a credit card. With a revolver, the lender agrees to provide a nominal sum of capital available to the business at any time provided all covenants and conditions are met. The business can then choose to withdraw any amount up to the maximum sum agreed. Interest is then paid on the average amount outstanding over the period while the unused portion also has a lower fee charged on it as compensation for the bank committing that amount of capital. The revolver is a popular option for beauty salons, hair salons, spas etc. because it provides a business with the flexibility to borrow more in one period and less in another as per the fluctuations of demand. The business is therefore not on the hook for a fixed principal payment each period and can manage its money responsibly as per the volume of business they need to service. Furthermore, it can also help a business take advantage of volume discounts if offered. For example, if a supplier is going out of business and offering its products at deep price cuts, the business can use the revolver to take advantage of this situation and gain inventory at a low price that can be used for an extended period of time.

Term Loan:

The term loan is the classic financing option. With the term loan, the lender provides a fixed sum of cash upfront to the borrower at a specified rate with a pre-determined length. The loan is governed by covenants which stipulate what a borrower can and cannot do and is paid back at regular intervals (normally monthly). The advantages of the term loan include a fixed sum of cash provided, which allows for easier budgeting and forecasting. The term loan is also versatile in the sense that business owners can use it to purchase anything from inventory and supplies to paying wages to renovating the storefront. The cons of such a loan though are that they generally come with a higher interest rate than the SBFP-backed counterparts as the bank alone is taking the risk on this type of loan. Special care should be taken for loans that are backed by personal assets too as a default could lead to the bank having a claim on those assets.

Equipment Financing:

With equipment finance, the lender advances a fixed sum of cash to the borrower to buy fixed assets as necessary for the business. The borrower then repays this loan in the conventional way, however in the case of default, the lender can seize the asset that the loan was used to buy. The main advantage here is that this type of loan is self-secured, meaning that the lender has no claim on personal assets. Given the large amounts of capital outlay required for salon businesses, this can be a very attractive option to raise this cash without risking personal assets. The main disadvantage here though is that the loan can only be used to buy a fixed asset relevant to the business’s operations and nothing else.

Frequently Asked Questions about Spa and Beauty Salons Loans


How do I choose the best option for my spa business?

Before deciding upon a loan type, the main questions the borrower needs to ask are how quickly they need to gain capital, what is the purpose of the loan, what loan structure they can reasonably afford and repay, how much time they need the loan for, and how much capital they need.

Can businesses with little or no operating history get loans?

While a lot of lenders do require a certain level of operating history, it is still possible to get loans even as a new business. That said though, these loans are likely to be expensive. It might be a better alternative to borrow from friends and family, dig into your personal savings or use other such means to get the business up and running before tapping commercial debt finance.

How long does it take to get a loan for a salon business?

The wait times for your spa or salon business loan will depend on the lender. Banks should take anywhere from one week to two months. Online lenders will take one day to a few weeks.

MCAs are usually provided the fastest, while term loans and lines of credit take longer to process.

Can I get a business loan for a salon or spa with bad credit?

Yes, you can. There are business lenders who specifically service business borrowers with low credit scores
. Some lenders provide loans to business owners with both high and low credit scores.

Keep in mind that bad credit will cause your application to be rejected by many lenders, especially banks. You can also expect worse terms and interest rates on any loans you take out. However, you will almost always have access to at least a few business loans.

If you're considering a business loan for your salon or spa and want to estimate the amount you could qualify for, use the convenient business loan calculator available here.

To see our tips on how to borrow responsibly please watch the video below. To see more educational videos on loans and financing, subscribe to our YouTube channel.

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writtenWritten by:

Amy Orr

Amy Orr is a professional writer and editor with over 10 years of experience in the Canadian, U.S. and U.K. financial markets. She has written for numerous publications on topics as diverse as economic literacy, corporate finance, and technical analysis of numerical data. Prior to transitioning to full-time writing, she worked in the hedge fund sector. Her academic background is astrophysics, and she has a Masters in Finance from the University of Edinburgh Business School.

av
writtenReviewed by:

Jenna West

Jenna West is Smarter Loans' in-house financial writer and content director. She has been covering the Canadian FinTech and finance industry since 2017, including financial trends analysis, industry surveys, regulatory updates and changes in Canadian consumer behaviour when it comes to finance.

Awesome G.
04:46 26 Feb 25
I’m very honoured to shear my experience with this illustrious platform. To be able to systematically choose from a list optional to one’s profile without doing much leg work is truly rewarding. This platform allowed to expand my options and chose which lenders fit my profile, thank you and continue doing what you do best,, connecting people to available wealth opportunities.
Pat M.
03:10 26 Feb 25
Good place to get a loan
Chris “Stufphr” H.
02:07 26 Feb 25
When you feel in need of a loan do it smart and make it a Smarter Loans.
Dan Bott (.
01:41 26 Feb 25
Very Helpful, was assisted in a timely fashion and was ultimately able to receive assistance; I highly recommend!!!
joel K.
22:59 25 Feb 25
I have recommended this place to many friends I feel that this company goes out of their way to help people that they can and they are very easy to work with
Nate C.
13:22 27 Oct 24
This company is reliable, quick, and just has the best customer service and rates it is a easy process with quick results. Would definitely recommend to anyone that needs the help.
Vincent J.
07:08 23 Oct 24
Good place for borrowing a bit of money 😁
Kels H.
06:41 23 Oct 24
Personally love this opportunity and app. Super convenient and easy to use and super awesome variety of great loans. Thanks so much guys for making such an awesome site and app and being there for me over the years. :)
Tara H.
16:23 16 Oct 24
From beginning to end, my experience was great! Very professional and personable agents. They only asked questions that were needed for the loan and payments were extremely reasonable. Would recommend to anyone who needs emergency funds.
A S.
19:43 11 Oct 24
“ Thank you SO very much! My situation was tricky and you guys made the whole process so effortless. The way you guys handle the whole process so discreetly. That truly speaks to how well your office is run and the caliber of specialists who handled the processing of my entire loan!”

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