Business funding for barbershops
Barbershops run on chair count and card sales that come in steadily day to day, whether the revenue is booth rent or commission. Most shops borrow to add chairs, renovate, or cover payroll through a quiet stretch, and lenders can usually see the daily card pattern clearly.
- One application, several lenders
- No credit pull to see your options
- No fee to you, ever
Common funding needs
- Adding or replacing barber chairs
- Renovating or expanding the shop
- Covering payroll through a slow month
- Opening a second location
What usually fits
Products that usually fit
- Equipment financing for chairs and shop fit-out equipment.
- Term loan for a renovation or second location.
- Merchant cash advance for a faster, smaller need, repaid from daily card sales.
- Line of credit for payroll during slower weeks.
How a merchant cash advance works for you, and when it is too expensive
An MCA for a barbershop is repaid as a fixed percentage of daily card sales, so the debit shrinks on a quiet day and grows on a busy one. The factor rate, typically 1.15 to 1.45, fixes the total cost regardless of how fast the shop pays it down, and it gets more expensive to carry if a second advance stacks on top of one still being repaid, since both debits pull from the same card batch. For a renovation or new chairs that will pay for themselves over a year or more, compare the total payback against a term loan or equipment financing first.
Compare term loans, lines of credit, cash advances and equipment financing side by side →
Separately, our sister company CELER Merchants offers card processing.
Illustrative example
A worked example
A shop needs $18,000 to add two chairs and refresh the space. With a 2-year term loan at an illustrative 10-25% APR, payments come to about $831–$961 a month, or $19,935–$23,056 total.
The same $18,000 as a merchant cash advance at an illustrative factor of 1.20-1.40 means paying back $21,600-$25,200, usually inside 6 to 12 months from daily card sales.
Illustrative example only, not an offer or a quote. Rates, fees and terms are set by each lender and depend on your business. Fees are not included unless stated.
Underwriting
What lenders look at
- Monthly card and bank deposits
- Booth rental or commission structure and how it shows up in deposits
- Lease length at the current location
- Existing debt or daily debits on the account
- Owner credit and time in business
Honestly
Who this is not for
- A shop that just opened with no deposit history
- A business without a business bank account: lenders need to see business deposits
- Borrowing short-term money for a renovation that takes years to pay for itself
If borrowing does not make sense, we will say so.
Are you a match?
Lender network minimums
Close but not quite there? Apply anyway and we will tell you honestly what is possible.
*Best available terms from lenders in our network. Every lender sets its own criteria; approval, amount and funding time are decided by the lender and not guaranteed.
| Time in business | 1 year+ |
|---|---|
| Monthly bank deposits | $20,000+ |
| Credit score | 500+ |
| Bank account | Business |
| Fee to you | $0 |
| Credit pull to start | None |
FAQ
Barbershops funding questions
Can a booth-rental shop get funding?
Yes, but lenders look at how rent shows up in deposits. Bring statements that show it coming in regularly.
Can I finance new chairs?
Often, yes, through equipment financing, usually with a vendor quote.
How much can a barbershop typically borrow?
It depends on monthly deposits, time in business and credit. Lenders in our network often start around $20,000 a month in bank deposits.
Will applying affect my credit?
Our intake does not pull credit. A lender only runs a full check if you move forward, and they tell you first.
Guides
Guides for barbershops
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Where we work: all US states · all Canadian provinces
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