To run a salon or spa in today’s beauty and wellness market, you need more than just skill. You also need a steady stream of cash, up-to-date equipment, and the ability to quickly adapt to new trends. Access to the right funding can make a big difference if you want to grow your business, hire more stylists, start a med-spa service line, or just smooth out seasonal dips in revenue.

This guide goes over the best ways for salon and spa owners to get money, how to qualify, what to expect in 2025, and which funding sources are the most flexible. It also explains why many beauty businesses are choosing ICG Funding as their main source of capital.

What is funding for salon and spa businesses?

Salon and spa business funding is money that beauty and wellness business owners can use to help them manage their cash flow, buy new equipment, upgrade their technology, or offer more services. Banks, credit unions, fintech lenders, and private funding companies (like ICG) all offer these loans or other ways to get money.

Many modern financing programs look at business performance as well as personal credit, which speeds up and makes the approval process easier than traditional loans.

Advantages of This Kind of Financing

There are many reasons why salon and spa owners need business funding. The most common benefits are:

• Access to capital more quickly than bank loans
• Repayment terms that are flexible and based on how much money the business makes
• Often In many cases, you don’t need perfect credit.
• Ability to buy expensive tools like lasers, massage tables, microblading machines, and more
• Help with remodeling or expanding
• Stable cash flow during slow months
• Chance to put money into training staff and adding new services

When used wisely, funding can help you make more money, not just pay your bills.

The Best Ways for Salon and Spa Businesses to Get Money

Here are the best ways for beauty and wellness businesses to get money in 2025, along with how they work, who can use them, and their pros and cons.

1. Loans from the SBA 7(a) and 504

Best for: Salons and spas that have been around for a while and have good credit

Terms are usually 10 to 25 years with low interest rates.

One of the best things about SBA loans is that they have low long-term rates. They are great for building out a salon, buying commercial space, or buying a competitor’s business.

Pros:

• Lowest rates offered
• Long terms for paying back
• A lot of approvals

Cons:

• Strict rules for keeping records
• It’s harder to qualify with bad credit.

2. Loans for Working Capital

Best for: everyday costs, buying supplies, and paying employees

Terms usually last between 6 and 36 months.

Working capital loans help keep your business running smoothly by giving you money that you can use for almost any business purpose.

Pros:

• Quick approval
• Using it in different ways
• Great for handling slow times

Cons:

• Rates are very different
• Less time to pay back

3. Funding Based on Revenue (ICG’s Specialty)

Best for: Businesses that make the same amount of money every month

Common terms: Changeable, usually based on daily or weekly sales

RBF, or revenue-based funding, makes sure that your salon’s cash flow matches your payments. You pay a small percentage of your revenue instead of fixed payments.

Pros:

• Approval is easy
• No pressure to make payments on time
• Works for businesses that are new

Cons:

• The total cost may be higher than that of a bank loan.
• Best for businesses that make money all the time

ICG Funding stands out in this area because it gives beauty and wellness entrepreneurs quick approvals and flexible terms.

4. Merchant Cash Advances (MCAs)

Best for: Salons and spas that take a lot of credit cards

Common terms: Short-term, based on performance

In exchange for a portion of future credit and debit card sales, an MCA gives you a lump sum of money up front.

Pros:

• Approvals on the same day are possible
• No collateral needed
• Perfect for needs that change quickly

Cons:

• Higher total cost
• Frequent withdrawals can affect cash flow.

5. Financing for equipment

Best for:

• Buying new or better equipment
• Terms usually last from one to five years.

You can get loans for most of the equipment used in med-spas and salons, like IPL lasers and hydrofacial machines.

Pros:

• Equipment is used as collateral
• Monthly payments that are easy on the wallet
• Keeps cash reserves safe

Cons:

• You can only use it to buy equipment
• Interest rates can change based on credit.

6. Line of Credit for Business

Best for: cash needs that come up again and again

Common terms: Credit line that can be used over and over for up to 12 to 24 months

A business line of credit is a “safety net” of money that salon owners can use whenever they need it.

Pros:

• Only pay interest on what you use
• Easy access to cash
• Great for emergencies or when you need more stock

Cons:

• It’s harder to get approved for than short-term loans.
• You might need to have your credit checked again.

7. Factoring Invoices

Best for: Wellness spas that offer memberships or services that cost money

Common terms: Short-term loans

If your spa has subscription-based services or corporate wellness contracts, you can factor invoices to get your money faster.

Pros:

• Getting money owed to you faster
• No requirements for a traditional loan

Cons:

• Only useful for businesses that send out a lot of bills

How to Get Money for a Salon or Spa

Lenders usually look at:

For alternative funding, you need a credit score of 500 with ICG Funding; for SBA, you need a score of 680 or higher.

• Time in business: 12 months, depending on the program
• Monthly income: Usually at least $8,000 to $20,000
• Business bank statements: The last three to six months
• Tax returns and financial statements are needed for bigger loans.
• Voided check and ID: These are standard compliance items.

Tip: Funding partners like ICG make this process easier by looking at revenue performance instead of credit history.

How to Pick the Best Way to Get Funding

Use these things to help you decide:

• Your business goal is growth? What kind of equipment? Money flow?
• Preference for repayment: fixed monthly payments or payments based on revenue
• Strength of credit score: Better credit opens up cheaper options
• Need money right away? In 24 hours or 4 weeks?
• Budget: Figure out the return on investment (ROI) of new services or treatments

For example, if you’re adding a new laser treatment that brings in $10,000 a month, a $30,000 equipment loan can pay for itself in just a few months.

Last-Minute Advice for Salon and Spa Owners Looking for Funding

• Keep your business bank statements clean.
• Don’t go over your limit or have an NSF before you apply.
• Keep your receipts and other paperwork in order.
• Look at the total cost, not just the rate.
• Use money to make investments that will make you money.
• Make long-term connections with lenders who know your business, like ICG.

Questions and Answers

In conclusion

The beauty and wellness industry is still growing, but having the right amount of money at the right time is often the key to success. Choosing the right way to get money can help you grow your business, whether you’re expanding, upgrading your equipment, or stabilizing your cash flow.

ICG Funding is one of the easiest ways for beauty business owners to get money quickly and easily. This will help salon and spa owners grow their businesses with confidence in 2025 and beyond.