Hair salons, nail salons, barbershops, day spas and med spas use a merchant cash advance to renovate, buy equipment, hire and stock retail products. You get a lump sum and deliver a share of future card sales and deposits through fixed daily or weekly payments. InstaFunders funds $10,000 to $2,500,000 for businesses with 12 months+ in business and $50,000+ in monthly deposits, which usually means an established, multi-chair operation.
How money comes into a salon or spa
- Services paid by card at checkout, settled by your processor into daily deposits.
- Tips added to card payments, which pass through your account and go out to staff.
- Retail products like shampoo, color care and skincare, often a meaningful share of revenue at well-run shops.
- Gift cards, sold heavily in November, December and before Mother's Day. You receive the cash now and provide the service later.
- Memberships and packages, especially at spas: monthly membership charges and prepaid series of treatments.
- Booth or suite rent, if some or all of your professionals rent their space instead of working on commission.
Booth rental or commission: why your model changes the numbers
In a commission salon, every service runs through your register, so your deposits reflect total service revenue, and you carry payroll, products and supplies. In a booth-rental or suite model, your renters collect from their own clients and pay you weekly or monthly rent. Your deposits are smaller and steadier, and much of the revenue the underwriter sees is rent.
Both models can qualify. What matters is that you meet the $50,000 average monthly deposit threshold with your own business's revenue, and that you explain how your shop works so the deposits are read correctly. Many owners run a hybrid, which is worth spelling out on the application.
Busy seasons in the beauty business
The holidays, from Thanksgiving to New Year's Eve, are the peak for most salons. Prom and wedding season fill spring and early summer weekends. Spas see spikes around Valentine's Day and Mother's Day. January is quiet almost everywhere, and gift cards sold in December are often redeemed then, which means you're performing services in your slowest month for money you received in your busiest. Factor that in before you take an advance in the fall.
What salon and spa owners use funding for
- A renovation. New styling stations, shampoo bowls, lighting or a reception area. Pedicure chairs and shampoo stations also mean plumbing work.
- Expansion. Taking the suite next door, adding treatment rooms or opening a second location.
- Treatment equipment. Facial, body and skin devices that add a higher-priced service.
- People. Hiring and training stylists, technicians or estheticians before their books fill.
- Retail stock. Product and gift sets ordered ahead of the holidays.
Hypothetical example. A day spa averaging $110,000 a month in deposits wants to update two treatment rooms and add four pedicure chairs before the holidays. It takes $40,000 at a factor rate of 1.28, so the purchased amount is $51,200. Over about 120 business days that's roughly $425 a day, or about $2,135 a week over 24 weeks. Round illustrative numbers, not an offer.
Do daily payments work for a salon?
Usually. Card deposits arrive on most business days, so a daily payment moves with your income. The pressure points are the slow weeks after the holidays and any month a top stylist leaves and takes clients with them. Choose an amount whose payment you could carry through January, consider weekly payments if your deposits are lumpy, and remember you can ask for a reconciliation if revenue genuinely drops.
What an underwriter looks at for a salon or spa
Your last three months of business bank statements plus month-to-date, and before funding, your most recent card processing statement, which shows monthly volume and average ticket. The underwriter will look at how consistent your deposits are, what share is tips and rent, whether you have recurring membership revenue, how often your balance goes negative (an average of 5 or fewer days a month is the requirement) and what you already pay toward any existing advances.
When a salon or spa should consider other options
- Expensive laser or aesthetic devices. A machine with a multi-year life and a high price is usually cheaper on equipment financing.
- A full build-out of a new location. Leasehold improvements that take years to pay back fit a bank or SBA loan better than an advance with a term of up to 10 months.
- Replacing departed stylists' revenue. If the chair is empty, funding doesn't refill it. Hire first, then fund growth.
Frequently asked questions
Can a booth-rental salon get a merchant cash advance?
Yes, if the salon's own deposits, mostly rent from its professionals plus any services and retail it sells directly, meet the requirements. Explain your model on the application so the underwriter reads your deposits correctly.
Do tips count toward my monthly deposits?
Card tips do pass through your deposits, but they go out to staff, so they aren't money you keep. Size your advance and payment on revenue after tips.
Can a med spa get a merchant cash advance?
Yes. Med spas are reviewed like other businesses, on deposits, time in business, credit and existing advances. For high-cost lasers and devices, equipment financing is often the cheaper route.
Can I use a merchant cash advance to renovate my salon?
Yes, a renovation is one of the most common uses. Keep the scope to improvements that will pay back within months, such as more chairs or rooms, rather than a full rebuild.
What do I need to apply?
A signed application and your last three months of business bank statements plus month-to-date. See the requirements, then apply online.