A salon adding stations usually splits the remodel three ways: stations, chairs and shampoo bowls on equipment financing, plumbing and build-out on a term loan or the landlord's allowance, and product inventory on a line of credit.
Starbrook Lending, from Mason City, Iowa, explains which funding fits each part of a Cerro Gordo County salon remodel: styling stations, pedicure chairs, dryers and suite build-outs, and product inventory, with county salon counts and invented numbers.
Stations, Plumbing and Retail Shelves: Three Costs, Three Funding Types
A salon remodel has three kinds of cost, and each fits a different funding type. Stations, chairs, dryers and shampoo bowls are equipment with a useful life of years. Plumbing, electrical, walls and flooring are build-out, attached to the space. Retail product and color stock are inventory that sells in weeks.
Splitting them lets each part carry its own term: equipment over its life, the build-out over a longer term or through the landlord, the product on a line drawn and paid down as it sells. One loan for everything can work, but it ties short-lived costs to a long schedule.
Beauty salons had 20 employer establishments in Cerro Gordo County, IA in 2023, 14 of them with fewer than five employees, and nail salons had 3 (CBP). Nonemployer Statistics, a separate program, counted 86 beauty salons and 17 nail salons with no paid employees in the county in 2024.
Beauty Salon Loans When Cerro Gordo County, IA Salon Owners Need Styling Stations
Beauty salon loans for stations are usually equipment loans or leases, secured by the stations. A quote that lists each station, its mirror and lighting, and installation lets a lender see the full cost.
Equipment financing explains leases and loans, including what happens at the end of a lease.
Used stations from a closing salon can cost far less than new ones, but a lender may not finance them, or may set a short term, because their age and condition are hard to prove. A dated bill of sale and photos help. New stations bought from a dealer come with a model number and warranty, which a lender can read at a glance.
Salon Financing for Mason City, IA Salon Owners Buying Pedicure Chairs
Pedicure chairs with plumbed whirlpool basins cost more than styling chairs and need plumbing and drains, which adds a build-out line to the quote. Illustration only, invented figures: two pedicure chairs at $9,600 for the pair over 48 months at an invented annual rate of 10% cost about $243 a month (our arithmetic).
Ask the installer to separate the chairs from the plumbing so each can be funded on the right term.
Pedicure stations also need regular cleaning and parts, such as jets and liners, so ask what the warranty covers and add the expected upkeep to the monthly figure before comparing a loan with a lease.
Loans for Beauty Salons: Dryers and Suite Build-Outs in Mason City, IA
Hood dryers and processors are equipment; a suite build-out, where a salon divides space into private suites rented to stylists, is construction. The suites are paid back by suite rent, so a lender reads the rent roll or the signed suite agreements.
Business term loans covers build-outs, and a landlord's tenant improvement allowance can lower the amount needed.
A lease with only a year or two left makes a build-out harder to fund, since the improvements stay with the building. Extending the lease before signing a build-out bid gives the loan a term that fits inside the occupancy.
Hair Salon Business Loans for Cerro Gordo County, IA Salon Owners Covering Product Inventory
Product inventory, from retail shampoos to color stock, sells within weeks. A line of credit drawn for a large order and paid down from sales fits it, and so does a short inventory loan for a one-time stocking order before a reopening.
Working capital loans and business loans for retail cover stock bought ahead of sales.
Invented Numbers: Four New Stations Against Booth Rent
Illustration only, invented figures: a salon adds 4 stations at $3,200 each and two shampoo bowls with plumbing for $9,500, $22,300 in equipment, financed over 48 months at an invented annual rate of 10%: about $566 a month (our arithmetic).
Invented figures continued: an $18,000 build-out for walls and electrical over 60 months at an invented 9.5% adds about $378 a month (our arithmetic). The four stations rented to stylists at an invented $175 a week bring about $3,031 a month (our arithmetic, 4.33 weeks per month).
Invented figures continued: the two payments together come to less than the invented booth rent, which leaves room for supplies and slow weeks. If only two chairs rent, the math tightens, which is the case to test.
Salon Remodel Checklist Before Asking for Money
- Get separate quotes for equipment, plumbing and build-out.
- Ask the landlord whether the lease includes money for tenant improvements.
- Check with the city about permits for plumbing and electrical work.
- Collect signed booth or suite agreements if stylists rent chairs.
- Gather bank statements, tax returns and a list of current debts.
- Compare a loan and a lease for the stations in total dollars.
The industries page has the salon note, and the Mason City, IA page has the county sector table.
By Starbrook Lending · Updated
