Merchant cash advance for hair and beauty salons
By Helm, Business Funding Specialists
- Salons with consistent card transaction volumes are strong candidates for a merchant cash advance
- Popular uses include salon refits, new chairs and equipment, marketing, and training
- Repayments adjust daily based on how busy you are
- No personal guarantee or property security needed
The hair and beauty industry is built on repeat customers, consistent footfall, and high volumes of card transactions. These characteristics make salons one of the most natural fits for a merchant cash advance.
Whether you run a single-chair barbershop or a multi-room beauty clinic, the funding model works because it is tied to the revenue you are already generating through your card terminal.
Why salons are ideal for merchant cash advances
Several features of the salon business model make it particularly well suited to this type of funding.
- Regular, predictable card transaction volumes from repeat clients
- High percentage of payments made by card rather than cash
- Steady weekly revenue patterns that support reliable repayment
- Growth investments like refits and equipment directly increase revenue potential
What salons use funding for
Salon owners use merchant cash advances for investments that maintain their competitive edge and attract new clients.
- Full or partial salon refurbishments and interior upgrades
- New styling chairs, wash basins, and treatment beds
- Specialist equipment like laser machines, UV lamps, or microdermabrasion units
- Marketing and social media advertising to attract new clients
- Staff training and qualification courses
- Expanding into additional treatment rooms or a second location
- Upgrading booking and point-of-sale systems
- Stock purchases for retail product lines
How repayments work for salons
Salon revenue tends to follow a weekly pattern, with Saturdays and late-night shopping evenings being the busiest. Your repayments reflect this automatically.
On a busy Saturday when you process £1,500 in card payments, a 10% repayment means £150 goes towards your advance. On a quieter Monday with £400 in card sales, only £40 is collected. You never pay more than your business can handle on any given day.
| Day | Card revenue | Repayment (10%) | You keep |
|---|---|---|---|
| Monday | £400 | £40 | £360 |
| Wednesday | £700 | £70 | £630 |
| Friday | £1,100 | £110 | £990 |
| Saturday | £1,500 | £150 | £1,350 |
How much can a salon borrow?
The advance amount depends on your monthly card transaction volume. Most providers offer between 50% and 150% of your average monthly card revenue.
A salon processing £8,000 per month in card transactions could typically access an advance of between £4,000 and £12,000. For larger salons or beauty clinics with higher turnover, advances of £20,000 or more are common.
Salon-specific considerations
There are a few things that salon owners should keep in mind when considering a merchant cash advance.
- If you rely heavily on cash payments, your eligible advance amount will be based only on card transactions
- Chair rental income from self-employed stylists typically does not count towards card revenue
- Consider timing your application to coincide with a period of consistent trading
- Factor in any planned closures for refurbishment when thinking about repayment timelines
Frequently asked questions
Can mobile hairdressers get a merchant cash advance?
Mobile hairdressers can qualify if they process card payments through a mobile terminal or payment app and meet the minimum transaction threshold.
What if I rent my chair?
If you rent a chair in someone else's salon and process your own card payments, you may be eligible. The key factor is that you have your own merchant account with a verifiable transaction history.
How quickly can I get funded?
Most applications are processed within 24 to 48 hours. If you have your card processing statements ready, the process can be even faster.
Do I need to close my salon during a refit to get funding?
No. You can apply while trading normally. If you plan to close temporarily for a refit, discuss this with your provider so they understand there will be a pause in repayments.