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Salon Equipment Financing in 2020: Everything You Need to Know



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Whether you’re opening a new beauty salon or looking to grow your business by upgrading your salon equipment, interest rates are at an all-time low this year, so it could be the best time to take out a loan or other financing.

While there are several small business loan options to consider, there are some specifically geared toward beauty salons and spas looking to buy equipment. We’ll cover all your financing options here and help you determine which is the best fit for your business.

Salon Equipment Financing for 2020

Because there’s such a wide range of options when it comes to getting a loan for beauty salon equipment, there’s truly something for every business, regardless of credit scores, revenue, or time in business.

Financing salon furniture or equipment directly from a supplier may not even require a credit check, which is great if you haven’t yet built up your business credit. (Get your free business credit scores to see where yours stands.)

If you opt for an equipment loan, you may be required to have credit scores of 650 or more, depending on the size of the loan. The good news is that the equipment you’re buying will serve as your collateral.

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3 Options for Salon Equipment Financing

Now let’s dive into your business loan and financing options for your hair salon or spa.

Wholesale Salon Equipment Financing

Many salon equipment retailers will sell you stylist chairs, stations, and supplies directly and will even offer their own financing options. 


Rates will vary depending on the vendor’s financing terms. Many offer 0% APR for the first 6-12 months, so if you can pay off the loan, you won’t pay anything in interest. Others offer on average 9.99-19.99% rates.


Requirements to qualify for financing with a vendor will be different than with a traditional bank. The vendor may not require a credit check…then again, it might. Generally, we’ve seen vendors who accept applications from businesses with bad credit history up to those with stellar credit. Ultimately, your credit score may help you get a better rate.

Most salon equipment lines of credit and loans through vendors have terms of 12-60 months.


Whether you need a $1,000 barber chair or a full $100,000 build-out for your entire salon, you can find financing. Some applications have a minimum purchase requirement of $1,000-5,000.

Pros & Cons

The benefit of financing equipment directly from a wholesaler is that you’re paying less than you would with retail. If you’re able to pay back the financial loan quickly, you won’t incur interest charges.

On the other hand, if you can’t pay it off before interest rates kick in, you’ll pay more over time for your equipment.

Lease and Lease-to-Own

Another option is to lease equipment, with the option to purchase. If you know you’ll need this equipment long-term, you can conserve cash up front and then have the benefit of owning equipment you can later sell for a profit.


Leasing salon equipment usually involves a set monthly rate for as long as 60 months.


For financial leases under $75,000, you may not be asked to provide financial statements for your business, but if you want more than that, you may be required to provide statements for your last two years in business. You generally do not need a down payment.


Lease-to-own options can go as high as $500,000 in most cases.

Pros & Cons

Leasing equipment you can eventually own gets you the latest technology without a huge upfront payment. You can get approved for a lease even if you have a bankruptcy on your record, which isn’t always the case with business loans. The drawback is that by the time you have paid off the lease, the equipment might be outdated.

Equipment Loans

You can also take out an equipment loan, specifically designed to provide you capital to purchase equipment to run your business.


Rates can range from 2% (usually an introductory rate or for very high credit scores) up to 20%.


Typically, lenders want you to have been in business at least two years, with revenues of $50k or more. You may also need a credit score of 650+.


You can secure anywhere from $5,000 to $5 million with an equipment loan.

Pros & Cons

Because your equipment serves as your collateral, you don’t need a cash down payment for an equipment loan. It can be a great tool for building your credit if you pay your installment on time. On the other hand, you may need a higher credit score than with other options mentioned above.

Check out our equipment financing partners below.

TimePayment is an award-winning equipment leasing company that specializes in transactions with a selling price Learn More

View More Offers

Currency Capital is a leading online equipment financing network serving thousands of small- and medium-sized Learn More

How to Qualify for Salon Equipment Financing

While lenders will have their own requirements for financing and leasing programs, you can start with the following.

-Make sure you have an active business license or permit with your state’s Secretary of State. Salons are required to have specific licenses, so make sure you’re compliant.

-Stay on top of both your business and personal credit scores, as they both matter. You’ll need a minimum of 600-650 credit score to qualify.

-Make sure your credit history is spotless. If you have a bankruptcy in the past seven years or unresolved tax liens, you may not qualify for some financing programs.

Is it Possible to Qualify for Salon Equipment Financing with Bad Credit?

It is possible to be approved for a salon equipment small business loan with less than stellar business or personal credit, but know that it may limit your options and get you a higher interest rate.

Generally, it’s better to clean up your credit history or even build it from the start by opening a few business credit cards and paying your bill in full or opening a line of credit with a vendor who will report to credit bureaus before applying for a loan.

How Many Years Can You Finance Salon Equipment?

Again, this will vary from one lending institution to another, but many equipment financing options will let you finance spa, salon, and barber equipment for up to 60 months.

Should You Buy or Lease Salon Equipment?

As mentioned above, leasing spa or hair salon equipment is a great way to get what you need to run your business without a large upfront expense. But weigh the benefits and drawbacks of a lease versus purchase carefully.

Pros of Buying Salon Equipment

Buying equipment means it’s yours to do what you want with. You can sell the equipment and recoup some of your business expenses. Equipment and beauty salon loans make it easy to get what you need even if you don’t have the cash flow to pay for it.

Cons of Buying Salon Equipment

If you’re just starting out, you may not qualify for spa financing. If you have any negative marks on your credit, you may find it hard to get a term loan that doesn’t have astronomical interest rates.

Pros of Renting Salon Equipment

Leasing equipment may not require a cash down payment, which is great on your budget. With leased equipment, you can surrender the equipment when you’ve paid off the equipment lease, or buy it for a low price based on the lease terms.

Cons of Renting Salon Equipment

A salon equipment lease may not help you build your credit scores the way beauty salon loans might. If building your credit is important, this may not be the best small business funding option.

Alternative Financing Options for Salon Equipment

If none of the above equipment financing and leasing options appeal, or if you don’t qualify for them, here are some other traditional and online lenders to consider.

Nav’s Final Word: Salon Equipment Financing

You want to offer your customers the latest salon technology so they can look and feel their best. Taking out a business loan or leasing salon equipment can help you maximize your working capital and keep your business growing.

This article was originally written on June 29, 2020.

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3 credit habits that you need to break



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Are you using your credit card responsibly? Or do you have a few bad habits? Take a look at three common bad habits that people have with their credit cards and the best ways to stop doing them.

Habit 1: Pushing the limits

The first bad credit habit is pushing your outstanding balance close to its limit. What’s wrong with that? The first problem is that you’re giving yourself a larger debt load to contend with every month — one that accumulates interest the longer that it sits. It could be very difficult to pay down, and it could even lead to you maxing out your card.

The second problem with this habit is that it leaves you vulnerable to emergencies. You’ve taken up the majority of your available credit, so you can’t depend on it for unexpected payments. What if you need to pay for an urgent repair and there’s not enough room on your card? What can you do?

To avoid that difficult situation, you could apply for an online loan to help you cover the emergency costs and move forward. See how you can apply for an online loan in Ohio when you have no other safety nets to fall back on. It’s important that you only turn to this solution when you’re dealing with an emergency. It’s not for everyday purchases or small budgeting mistakes.

In the meantime, you should try your best to keep your credit utilization at 30% or lower — this means that your balance should be below the halfway point of your limit.

Habit 2: Paying the minimum

You pay your credit card bills on time, but you only give the minimum payment. While this habit can stop you from racking up late fees and penalties, it can still get you into hot water if you’re not careful.

Only paying the minimum for your bill will make it very difficult for you to whittle down the balance, especially when you’re continuing to charge expenses on your card. You’re only taking $20-$25 off a growing pile.

So, what can you do? If you’re paying this amount by choice, stop it — you’re only making things harder for yourself down the line. If you’re paying this amount because you don’t have any more funds, look at your budget to see whether you can cut your monthly costs to get more savings and use them to tackle your balance.

Habit 3: Using it for every single expense

You don’t need to put every single expense on your credit card. Your morning coffee? Your afternoon snack? Putting these small, everyday expenses on your card is a habit that can make your balance climb quickly.

You also don’t want to put some very important expenses on there, like mortgage payments. For one, these payments are large and will take up a significant amount of your credit. Secondly, if you need to use a credit card to make these payments on time, you need to reinvestigate your budget to see whether you can actually afford your living space.

So, what you should you do? Use a debit card, cash or checks to pay for the items above. Only put expenses on your credit card that you’re positive you can pay off in a reasonable timeframe.

Don’t let these bad habits drag you down and get you into financial trouble. Break them now, before it’s too late.

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Free credit reports have been extended; here’s why it’s important to check yours regularly



Checking your credit could save you from identity theft. (iStock)

Typically, you’d be able to check your credit report — at least for free — just once annually through each of the three major credit reporting agencies. But thanks to the coronavirus pandemic, credit reports are now more accessible than ever.

Credit reporting companies Equifax, Experian and TransUnion are all offering  free credit reports weekly through April 20, 2022.

The move means better insight into your financial health during what, for most, is an economically challenging time. According to experts, it might also be a time that’s ripe for at-risk personal information and identity theft, too — even more reason consumers should be checking their credit on the regular.


Have you checked your annual credit lately? If not, here’s what you need to know about these free nationwide credit reports and how to get them. If you’re not sure where you fit on the credit score spectrum, you may want to start using a credit monitoring service to track changes to your credit score. Credible can get you set up with a free service today.

Free credit reports for all?

The nation’s three credit bureaus initially started offering free weekly credit reporting last year, just after the pandemic began. In early March, they announced they’d extended the offer for another year, this time through April 20, 2022.

To request your free credit reports and access copies, you can go to and provide some basic information to verify your identity (things like your date of birth, Social Security Number, and address).

Once your report is ready, you should see a detailed list of all open and closed accounts in your name, your payment history, recent credit activity and more.


Protect yourself from identity theft

There are many reasons why checking your credit activity is important, but chief among them? That’d be the prevalence of data breaches in today’s world — not to mention the risk of identity theft they come with.

“In the past, it was perfectly acceptable for people to check their credit history once a year, but now with security breaches happening on a regular basis, consumers should be monitoring their credit more closely than ever,” said Clint Lotz, president and founder of, a predictive credit technology firm.

Lotz said the Equifax breach — which exposed over 147 million Americans’ personal information in mid-July 2017 — is the perfect example of why watching your credit report is important as far as identity theft protection goes. The pandemic, he said, adds an extra layer of risk to things.

“It took them [Equifax] months before they even realized they had been hacked, and considering that they hold files on hundreds of millions of Americans, it’s fair to say that many identities were stolen by the time they caught up to it,” Lotz said. “With many of us worrying about very serious issues not related to our credit, it’s a prime time for that stolen data to be put to work by bad actors in slow, methodical ways and in the hopes that nobody notices it.”

More reasons to check your credit

Checking your credit health often isn’t just good for detecting fraud alerts and to protect your identity, though. You can also monitor your report for errors — things like inaccurately reported late payments, for example — and then dispute those with the credit bureau.

If the error gets corrected, it could improve your credit score and make a jump from bad credit to a FICO score that’s more favorable. Not sure of your credit score? Head to Credible to check your score without negatively impacting it.


You can also use your credit reports and scores to monitor your financial habits — like the timeliness of your payments or how much debt you have left to pay off. Both of these factors can play a big role in your score, as well as how likely you are to get approved for loans, credit cards and other items.

“If you’re taking out a loan, getting insurance or even applying for a new job, checking your credit will allow you to see an overview of what would be seen by others looking at your credit,” said Leslie Tayne, a debt relief attorney with the Tayne Law Group. “Staying up-to-date on your credit reports and information allows you to know exactly where you need to improve.”

Want to be sure your credit is stellar before applying for a loan or insurance policy? Consider Credible’s partner product Experian Boost, which lets you use positive payment history on utilities, streaming and other bills to improve your credit score.

Set up a monitoring service, too

Though checking your credit reports manually is smart, you should also consider signing up for a credit monitoring service. These consumer financial services check your credit information and score regularly and alert you of any changes.


If you’re interested in monitoring your credit or improving your score, head to Credible and learn more about how Experian can help. You can also use Experian Boost to get credit for on-time bill payments.

Have a finance-related question, but don’t know who to ask? Email The Credible Money Expert at [email protected] and your question might be answered by Credible in our Money Expert column.

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Do Personal Loans Have Penalty APRs?



Select’s editorial team works independently to review financial products and write articles we think our readers will find useful. We may receive a commission when you click on links for products from our affiliate partners.

When you make your credit card payment late, you’re often subject to late fees and a penalty APR, which is a temporary spike in your interest rate.

The Blue Cash Preferred® Card from American Express, for instance, has a 13.99% to 23.99% variable APR, but the penalty APR is a variable 29.99% (see rates and fees). Penalty APRs usually last for at least six months, but card issuers often reserve the right to extend them — especially when you continue making late payments. A look at the terms for the Citi® Double Cash Card show us that the “penalty APR may apply indefinitely.”

Penalty APRs are certainly not a trap you want to fall into, but it’s not something you usually have to worry about if you have a personal loan. Personal loan lenders can, however, charge late fees upwards of $39 per late payment. Whether your loan charges late fees all depends on how good of a loan you qualify for, and that comes down to your credit score, borrowing history and ability to make your payments.

Personal loans also tend to charge lower interest rates than credit cards, too. The average personal loan interest rate for two-year loans is currently 9.46% according to Q1 2021 data from the Federal Reserve, compared to 15.91% for credit cards.

Typically, interest rates for personal loans range between roughly 2.49% and 24%, but personal loans for applicants with bad credit can come with even higher APR — so do your research before applying.

Other common personal loan fees include:

  1. Interest: The monthly charge you pay to borrow money
  2. Origination fee: A one-time upfront charge that your lender subtracts from your loan to pay for administration and processing costs
  3. Late fee: A one-time fee charged for each payment that you fail to make by the due date or within your grace period
  4. Early payoff penalty: A fee incurred when you pay off your balance faster than planned (because the lender misses out on months of expected interest payments)

As you can see, personal loans can be costly, even without a penalty APR. It’s obviously best to avoid paying extra fees whenever possible. That’s easier to do when you have a good to excellent credit score, since you’ll qualify for better loan options.

Select has a free tool to help match you with personal loan offers without damaging your credit score.

None of the loans on our best personal loan list charge origination fees or early payoff penalties, but some may charge late fees.

Our top picks for best personal loans

Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.

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