Opening, refurbishing or expanding a hair salon, beauty business or aesthetics clinic can require a substantial investment.

It isn’t simply a case of finding premises and buying a few pieces of equipment.

A new salon or clinic could require investment in:

• Specialist treatment equipment
• Salon chairs and stations
• Laser and IPL machines
• Treatment beds
• Wash basins and backwash units
• Reception areas
• Flooring and lighting
• Plumbing and electrical work
• Partitioning and treatment rooms
• Air conditioning and ventilation
• Furniture
• Signage and branding
• EPOS and booking systems
• Stock and consumables
• Recruitment
• Marketing
• Working capital

Put everything together and even a relatively small project can quickly become a significant capital investment.

This is where Hair, Beauty and Aesthetics Finance can help.

Rather than funding an entire project from existing cash, businesses can potentially use a combination of Equipment Finance, Asset Finance, Business Loans and other commercial funding to spread costs and retain more working capital.

At Principal Business Finance, we work with a wide panel of commercial lenders and can help both new and established hair, beauty and aesthetics businesses explore funding for equipment, fit-outs, expansion and general business investment.

A Growing UK Beauty Industry

Hair, beauty and aesthetics represent a significant part of the UK economy.

According to research from the British Beauty Council and Oxford Economics, the beauty and personal care industry made a direct contribution of £15.9 billion to UK GDP in 2024, with the total contribution rising to approximately £30.4 billion once its supply chain and employee spending were included.

The industry also directly employed approximately 496,000 people in 2024.

From independent hairdressers and beauty salons through to multi-site aesthetics clinics and specialist treatment centres, it is a diverse industry where equipment, premises and customer experience can play a major role in commercial success.

What Is Hair, Beauty and Aesthetics Finance?

Hair, Beauty and Aesthetics Finance isn’t necessarily one particular finance product.

Instead, it describes commercial finance used to fund the assets, premises and other expenditure associated with operating or growing a business in the sector.

For example, a clinic purchasing a £60,000 laser system might use Asset Finance.

A salon completing a £100,000 refurbishment might use a Business Loan for elements of the project that cannot be financed as individual assets.

A larger business opening a completely new location might use a combination of both.

The objective is to match different parts of the investment with appropriate forms of funding rather than assuming everything has to be paid for using one facility.

What Hair and Beauty Equipment Can Potentially Be Financed?

Equipment requirements vary considerably between businesses.

Hair Salon Equipment

A hair salon may require:

• Styling chairs
• Styling stations
• Mirrors
• Backwash units
• Hair processors
• Hood dryers
• Professional dryers
• Colour processing equipment
• Reception furniture
• POS systems
• Laundry equipment
• Specialist lighting
• Air conditioning
• IT equipment

For a salon with multiple stations, the cost can quickly accumulate.

A business opening a premium 10-chair salon, for example, may need to purchase multiple pieces of equipment before serving its first customer.

Asset Finance could potentially allow eligible equipment to be acquired while spreading the cost over an agreed period.

Beauty Salon Equipment

A beauty salon could require:

• Electric treatment beds
• Facial machines
• Nail stations
• Pedicure chairs
• Spray tanning equipment
• Waxing equipment
• Massage tables
• Microdermabrasion equipment
• Skin analysis technology
• Sterilisation equipment
• Laundry equipment
• Reception systems
• EPOS technology

Rather than buying everything outright, suitable assets could potentially be financed individually or as part of a wider equipment package.

Aesthetics Clinic Equipment Finance

Equipment costs can become significantly higher when moving into advanced aesthetics.

An aesthetics clinic could invest in:

• Laser hair removal systems
• IPL machines
• Skin rejuvenation equipment
• Radiofrequency devices
• Body contouring technology
• Skin tightening equipment
• Facial systems
• Skin analysis technology
• Treatment beds
• Sterilisation equipment
• Specialist refrigeration
• Clinical furniture
• Diagnostic technology

Some individual machines can represent a substantial investment.

The ability to finance suitable equipment can therefore be particularly valuable for clinics wanting to introduce new treatments without removing a large amount of cash from the business immediately.

Laser Machine Finance

Laser equipment is one of the clearest examples of where finance can potentially support growth.

Imagine an established clinic wants to introduce a new treatment and the required equipment costs:

£75,000.

The business has enough cash to purchase the machine outright.

However, paying £75,000 immediately means that money is no longer available for:

Marketing.

Staff.

Training.

Stock.

Premises.

Future equipment.

Unexpected costs.

If the equipment is suitable for Asset Finance, the clinic could potentially spread the cost while using the machine to generate revenue throughout the finance term.

Naturally, finance has a cost, so the total amount payable needs to be considered alongside the commercial benefits of retaining capital and accessing the equipment sooner.

Funding a Hair, Beauty or Aesthetics Fit-Out

Equipment is only one part of opening or upgrading a premises.

A salon or clinic may require substantial fit-out work before it is ready for customers.

This could include:

• Flooring
• Ceilings
• Lighting
• Plumbing
• Electrical installations
• Treatment-room construction
• Partition walls
• Decoration
• Reception areas
• Storage
• Washrooms
• Staff facilities
• Air conditioning
• Ventilation
• Security
• Signage
• Accessibility improvements

A high-end salon or clinic may also invest heavily in its interior design because the premises form an important part of the customer experience and brand.

The challenge is that not every element of a fit-out can necessarily be funded through traditional Asset Finance.

A chair, laser system or piece of equipment is an identifiable asset.

Building work, decorating and other improvements may be treated differently.

This is where a Business Loan or other commercial facility can potentially sit alongside Equipment Finance.

Example: Financing a £200,000 Aesthetics Clinic

Imagine an established practitioner wants to open a larger clinic.

The complete project costs:

£200,000.

This could include:

• £70,000 – laser and aesthetic equipment
• £50,000 – building works and fit-out
• £20,000 – furniture and treatment rooms
• £15,000 – technology, security and booking systems
• £10,000 – signage and branding
• £15,000 – recruitment and training
• £10,000 – launch marketing
• £10,000 – initial working capital

The business could simply use £200,000 of its own cash.

But that isn’t the only potential route.

Subject to eligibility and lender criteria, the project could potentially be structured using:

Asset Finance for eligible equipment.

Business Finance for fit-out and other project costs.

Working Capital for launch costs and cash-flow requirements.

Instead of looking at the project as one £200,000 expense, each part can be considered individually.

Preserving Cash While Opening a New Salon or Clinic

One of the main reasons businesses use commercial finance is to retain liquidity.

Imagine a salon owner has:

£150,000 available in cash.

The complete cost of opening a second location is:

£120,000.

They could pay cash and be left with £30,000.

But the business then opens its doors and still needs to fund:

• Wages
• Rent
• Utilities
• Marketing
• Stock
• Insurance
• Software
• Merchant fees
• Unexpected costs

The new location may also take time to build its customer base.

Using finance for suitable parts of the project could potentially allow the business to retain considerably more cash during this important early trading period.

Finance for a New Hair or Beauty Salon

Finance isn’t necessarily restricted to long-established businesses.

Funding may also be available for suitable new-start salons, clinics and beauty businesses, although lender options and criteria can differ significantly.

A lender considering a new business could look at:

• Owner’s industry experience
• Qualifications
• Personal investment
• Personal credit profile
• Business plan
• Financial forecasts
• Location
• Lease
• Equipment quotations
• Services offered
• Pricing
• Existing client following
• Social media presence
• Previous self-employed income
• Other business interests

Consider an experienced hairdresser who has worked within the industry for 15 years and now wants to open their own salon.

The company itself may be new.

The person behind it isn’t necessarily inexperienced.

That distinction can be important when presenting a new-start funding application.

Finance for Existing Salons and Clinics

Established businesses may have a broader range of funding options because lenders can potentially assess actual trading performance.

This could include:

• Annual accounts
• Management information
• Business bank statements
• Card turnover
• Profitability
• Existing borrowing
• Trading history

An established clinic generating £1 million in annual turnover will usually present a different funding proposition from a business that has not yet started trading.

This doesn’t mean one will automatically receive funding and the other won’t.

It simply means the applications are assessed differently.

Funding a Salon Refurbishment

Sometimes a business doesn’t need another location—it simply needs to modernise the existing one.

A salon may have traded successfully for 10 years, but its premises may no longer reflect the quality of the service it provides.

A refurbishment could include:

New chairs and stations.

Updated reception.

New flooring and lighting.

Additional treatment rooms.

Improved wash areas.

New equipment.

Updated signage and branding.

Air conditioning.

A £100,000 refurbishment could potentially be divided between equipment that qualifies for Asset Finance and other improvements funded through a Business Loan.

This allows an established business to modernise without necessarily taking the entire refurbishment cost from retained profits.

Adding New Treatments to an Existing Business

Finance can also be used for smaller growth projects.

A beauty salon might want to add aesthetics.

An aesthetics clinic could introduce laser hair removal.

A hair salon might add beauty treatment rooms.

A clinic could introduce a new skin treatment.

A spa could add additional treatment technology.

The investment isn’t simply about purchasing a machine.

There may also be:

Training.

Room alterations.

Marketing.

Additional staff.

Consumables.

Launch costs.

This is why looking at the complete project cost can be more useful than simply asking how to finance one piece of equipment.

Can Used Beauty and Aesthetic Equipment Be Financed?

Potentially, yes.

Some lenders can consider used equipment, although eligibility will depend on factors including:

• Equipment type
• Age
• Condition
• Supplier
• Value
• Remaining useful life
• Lender criteria

Businesses shouldn’t automatically assume that only brand-new equipment can be financed.

Financing Multiple Treatment Rooms

An established aesthetics clinic may reach the point where demand exceeds capacity.

Perhaps the clinic currently has three treatment rooms and wants to expand to six.

That might require:

Three additional treatment beds.

Additional machines.

New partitions.

Electrical and plumbing work.

Furniture.

Additional practitioners.

More working capital.

Instead of waiting to build enough cash to complete each room individually, suitable finance could potentially allow the business to complete the expansion together and increase capacity sooner.

Finance for Opening a Second Salon or Clinic

For successful businesses, the next stage of growth may be another location.

Opening site number two creates an interesting challenge.

The first business is already operating successfully, but the second site may require significant capital before generating meaningful revenue.

Costs could include:

• Lease deposit
• Refurbishment
• Equipment
• Furniture
• Recruitment
• Training
• Stock
• Technology
• Marketing
• Working capital

Commercial finance could potentially help bridge the gap between making the investment and the new location becoming established.

Multi-Site Hair, Beauty and Aesthetics Businesses

The funding requirements can become larger again when a business moves from one or two locations into a genuine multi-site operation.

For example, a successful clinic group might plan to open:

Three new locations over 18 months.

Each site may require £150,000.

That’s:

£450,000 of investment.

Funding could potentially be structured across equipment, fit-outs and working capital rather than requiring the entire £450,000 from existing company reserves.

Finance for Stock and Consumables

Hair, beauty and aesthetics businesses can also have substantial stock requirements.

This could include:

• Hair products
• Colour products
• Skincare
• Retail beauty products
• Consumables
• PPE
• Treatment supplies
• Aftercare products

An expanding business may need to increase stock before receiving the corresponding revenue from customers.

A suitable Business Loan or working-capital facility could potentially help fund this requirement.

Funding Recruitment

Growth often requires people as well as equipment.

A salon expanding from five chairs to ten needs stylists.

A clinic adding new treatment rooms needs practitioners.

A growing business may also require:

• Reception staff
• Salon managers
• Clinic managers
• Administrators
• Marketing staff
• Apprentices
• Additional therapists

These employees create costs before they necessarily generate their full revenue potential.

Working-capital finance could potentially help support the business during that expansion period.

Booking Systems, EPOS and Technology

Technology is increasingly important within the beauty industry.

Businesses may invest in:

• Online booking systems
• Customer relationship management software
• EPOS systems
• Payment terminals
• Stock management
• Automated reminders
• Marketing software
• Computers and tablets
• Wi-Fi infrastructure
• CCTV
• Security
• Digital signage

Depending on the technology and lender, some expenditure may be suitable for Asset or Technology Finance, while other costs could potentially be incorporated into a wider Business Loan.

Buying an Existing Salon or Aesthetics Clinic

Rather than starting from scratch, an entrepreneur or existing operator may want to purchase an established business.

An acquisition could provide immediate access to:

• Existing customers
• Staff
• Premises
• Equipment
• Brand recognition
• Historic turnover
• Existing treatment revenue

Funding may potentially be available to support suitable acquisitions.

Lenders could assess the buyer, target business, historic accounts, profitability, purchase price, existing debt and proposed structure.

Refinancing Existing Beauty and Aesthetic Equipment

Some established businesses already own valuable equipment outright.

Depending on the asset and lender criteria, Equipment Refinance could potentially release capital against eligible assets.

For example, a clinic may own several pieces of specialist equipment with significant value but require capital for a refurbishment or another location.

Rather than selling those assets, refinancing could potentially allow the business to continue using them while releasing capital back into the company.

What Might Lenders Look For?

Requirements vary between lenders and transactions.

An established salon or aesthetics clinic could be asked to provide:

• Latest accounts
• Management accounts
• Business bank statements
• Existing borrowing details
• Equipment quotations
• Supplier details
• Lease information
• Purpose of funding
• Director information
• Treatment or service information

For a new-start business, additional emphasis may be placed on:

• Industry experience
• Qualifications
• Business plan
• Forecasts
• Personal investment
• Personal credit
• Proposed location
• Equipment quotations

For larger fit-outs, lenders may also want a detailed breakdown of exactly how the money will be spent.

Why Match the Finance to the Asset?

A common mistake when funding a salon or clinic project is treating every expense in exactly the same way.

Consider a £250,000 project containing:

£100,000 equipment

£100,000 fit-out

£50,000 working capital

These are three different requirements.

The equipment has a useful economic life and may potentially suit Asset Finance.

The fit-out contains costs that may not be readily identifiable as standalone assets and could potentially suit a Business Loan.

The working capital is there to support operations as the location becomes established.

Looking at the project this way can open up more possibilities than simply asking for a generic £250,000 loan.

How Principal Business Finance Can Help

At Principal Business Finance, we work with a wide panel of commercial lenders and can help arrange funding for businesses throughout the hair, beauty and aesthetics industry.

This could include:

Hair Salon Equipment Finance

Funding for eligible chairs, stations, backwash units, technology and other equipment.

Beauty Equipment Finance

Funding for eligible treatment equipment, beds, technology and salon assets.

Aesthetic Equipment Finance

Funding for eligible laser machines, IPL systems, skin technology, body-contouring systems and specialist clinic equipment.

Salon & Clinic Fit-Out Finance

Commercial funding to support suitable refurbishment and fit-out expenditure.

Business Loans

For refurbishment, expansion, marketing, recruitment, stock, working capital and other suitable business expenditure.

Equipment Refinance

Potentially releasing capital from eligible equipment already owned by the business.

Acquisition Finance

For suitable purchases of existing salons, clinics or beauty businesses.

The right structure will depend on the business, equipment, supplier, amount required, trading history and purpose of the funding.

Funding the Complete Project – Not Just the Equipment

When opening or expanding a hair salon, beauty business or aesthetics clinic, it can be easy to focus on the headline purchase.

£50,000 laser machine.

£20,000 of salon chairs.

£30,000 treatment equipment.

But the equipment may only represent one part of the investment.

Once premises, refurbishment, recruitment, marketing, stock and working capital are included, the complete requirement can be considerably larger.

That’s why at Principal Business Finance, we look at what the business is actually trying to achieve.

Whether you’re opening your first salon, refurbishing an established location, purchasing new aesthetic equipment, adding treatment rooms, launching another site or expanding a multi-location business, we can explore our lender panel for potential funding options.

Commercial finance can allow suitable businesses to invest in the equipment and premises they need while retaining more cash within the company for the other costs that come with growth.

Planning your next salon, clinic or equipment investment? Principal Business Finance can help you explore the funding available and manage the process from initial enquiry through to completion. Contact us on 01604217998, email info@principalbusinessfinance.co.uk, or enquire here.

All finance is subject to application, status, lender criteria and approval. Security and/or personal guarantees may be required depending on the lender and facility.