Barber Shop Business Loans

From a new chair to a second site, fund your barber shop with confidence. Explore business funding through Fundably. Eligibility criteria apply.

Typical Range

£3k – £100k

Average Loan

£20k

for barber shop

Decision Speed

24–48 hrs

for unsecured loans

Eligibility requirements

Minimum 6 months trading history
Registered UK business (sole trader, partnership, or limited company)
Monthly card takings of at least £2,000 for merchant cash advance products
Personal guarantee typically required from the business owner

Loan types available

Unsecured Business Loan

Rate: 7.9% – 29.9% APR
Term: 1 – 5 years
Security: No security required
Best for: Fitting out a new shop, adding chairs, or covering costs while a new site builds up a client base

Merchant Cash Advance

Rate: Factor rate 1.15 – 1.45
Term: 3 – 18 months
Security: Repaid as a percentage of card takings
Best for: Fast, flexible top-up funding that flexes with a card-heavy, footfall-driven trade

Asset Finance

Rate: 5.9% – 14.9% APR
Term: 1 – 5 years
Security: The asset being financed
Best for: Chairs, basins, clippers and styling equipment for a new or refurbished shop

Representative example

Borrow £20,000 over 36 months at 9.9% APR (fixed). Monthly repayment: ~£644. Rates depend on your circumstances and the type of loan.

Common challenges

The chair-rental model common in the trade means turnover can be split between shop takings and chair rent, complicating income verification
High owner-dependency, since much of the client base is often tied to individual barbers rather than the shop brand
Cash and card mix varies significantly by location, affecting which finance products are the best fit
Fit-out and refurbishment costs are needed periodically to stay competitive on a typically short high street lease

Bad credit?

Some specialist lenders consider barber shop businesses with imperfect credit. You may need a personal guarantee or higher rate, but options may be available. Fundably may use a soft credit check for matching, which does not affect your credit score. A hard check may happen if you choose to proceed with a lender.

Frequently asked questions

Can I get a loan if some of my income is from renting chairs to self-employed barbers?

Yes, chair-rental income can be included when lenders assess your application, alongside the shop's own service takings. You will usually need to show both income streams clearly, for example through separate bank records or accounting entries for rent received. Lendus works with lenders familiar with the chair-rental model common in barbering, so this structure does not need to be a barrier to borrowing.

What can I use a barber shop loan for?

Common uses include fitting out a new shop, adding extra chairs and basins, refreshing an existing shop's décor, or covering running costs while a newly opened site builds up its regular client base. Smaller unsecured loans are typically used for day-to-day improvements, while larger amounts are more often used for opening additional locations. Lendus can help you work out which type of finance suits the scale of what you are planning.

Is a merchant cash advance a good fit for a barber shop?

It can work well for shops with steady card takings, since repayments are collected as a percentage of daily card sales rather than a fixed monthly amount. That means repayments are lighter during quieter weeks and rise when trade is busier. It is best suited to shorter-term funding needs rather than a large capital project like opening a second site.

How quickly can I get funding for a barber shop?

Unsecured loans and merchant cash advances can often be approved within 24 to 48 hours, with funds released shortly after, since lenders mainly review bank statements and card takings rather than requiring a lengthy application. Asset finance for equipment such as chairs or basins typically takes a little longer, as the supplier and asset details need to be confirmed first.

Equipment finance for barber shop businesses

Buying a specific machine or vehicle is usually cheaper than a general business loan, because the asset itself is the security. These are the items barber shop businesses most often fund, with the price range we see quoted in the UK.

Equipment	Typical price range	Finance page
Salon Equipment	£2k to £80k	Salon Equipment finance
Shop Fit Out	£15k to £300k	Shop Fit Out finance
Barber Chair	£600 to £20k	Barber Chair finance
Beauty Couch	£500 to £15k	Beauty Couch finance
Body Shop Equipment	£10k to £200k	Body Shop Equipment finance
Car Wash Equipment	£15k to £250k	Car Wash Equipment finance
Climbing Wall	£10k to £200k	Climbing Wall finance
Commercial Dryer	£2k to £50k	Commercial Dryer finance
Commercial Gym Equipment	£5k to £300k	Commercial Gym Equipment finance
Commercial Washing Machine	£2k to £60k	Commercial Washing Machine finance
Desk Fleet	£2k to £80k	Desk Fleet finance
Diagnostic Equipment	£2k to £30k	Diagnostic Equipment finance

Browse all equipment finance pages

Guides and resources

How to Get a Business Loan Business Loan Eligibility Secured vs Unsecured Best Business Loans UK iwoca Review Funding Circle Review

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For UK limited companies with at least 3 months’ trading and monthly revenue.