Quick answer
Hair salons, barbers and beauty studios in New Zealand usually fund refits, new stations, basins, product stock or buying an existing salon with unsecured funding sized on takings — typically $5,000 to $500,000 — or property-secured business loans from $20,000 to $5,000,000 for larger projects. Lenders look at booking consistency, how income is split between services and products, and any chair-rental arrangements.
Key points
- Salons have steadier takings than most hospitality — a strength when you borrow.
- Chair rental income and commission structures affect how lenders read your bank statements.
- Refits, extra stations and product stock are the most common reasons to borrow.
- Buying a salon means checking client retention, staff contracts and the lease.
Salons and barbers are some of the steadiest businesses on the main street. People need a haircut whether the economy is booming or not, regulars rebook every few weeks, and a good stylist’s diary is a fairly reliable forecast of next month’s takings.
That steadiness is an advantage when you borrow. But salon funding still has its quirks — chair rental, commission structures, product stock and the cost of plumbing in a new basin — and it helps to know how a lender will read them.
What do salons and barbers usually borrow for?
- Refits. New stations, mirrors, lighting, reception and flooring. A tired salon is hard to charge premium prices in.
- Extra stations or a second room. Adding chairs, a colour bar, a beauty room or a brow and lash station. If the shop next door comes up, see expanding into the tenancy next door.
- Basins and plumbing. Basins mean plumbing, and plumbing is rarely cheap.
- Product stock. Retail product can be a strong margin line, but it ties up cash on the shelf.
- Buying a salon. Purchase price plus the work to put your own stamp on it.
How do lenders read a salon’s numbers?
| What they check | Salon-specific detail |
|---|---|
| Bank statements | Regular card and eftpos takings, steady through the year |
| Chair rental | Rent from independent stylists, ideally under written agreements |
| Staff structure | Wages vs commission vs contractors, and who’s leaving |
| Product sales | Whether retail sells through or sits on shelves |
| Booking data | Rebooking rates and future bookings, if your software shows them |
| Lease | Term left, permitted use, plumbing and fit-out rules |
Chair rental needs care. If some of your stylists rent chairs, their rent is your income — but their client takings usually aren’t. Make sure the money flowing through your business account matches how the business actually works, and have the rental agreements handy.
Staff terms matter too. Employment New Zealand explains that pay-as-you-go holiday pay (8% of gross earnings) is only allowed where work is so irregular that four weeks’ annual holidays is impracticable, or for genuine fixed-term agreements of less than 12 months. Getting employment terms right avoids nasty surprises that a lender — or a buyer — might find later.
Secured or unsecured for a salon?
Unsecured funding (typically $5,000 to $500,000 for trading businesses) suits most salon refits, equipment and product purchases, because salon takings are consistent and easy to verify from bank statements.
Property-secured business loans ($20,000 to $5,000,000) suit buying a salon, a big expansion, or a new owner without much trading history who wants a longer term and lower repayments.
If you’re not sure which way to go, start a quick enquiry and talk it through with a person. There’s no credit check to ask.
What about the tax side of new equipment?
Inland Revenue’s Investment Boost lets businesses claim 20% of the cost of new assets bought from 22 May 2025 as an upfront deduction, and Inland Revenue says improvements to depreciable property can qualify while second-hand assets sourced from New Zealand don’t. New chairs, basins and fit-out improvements may therefore have better tax treatment than second-hand ones. Confirm with your accountant before you buy.
An illustrative example
Illustrative only. A four-chair barber shop has a waiting list most Saturdays. The owner wants to add two chairs and a second basin by taking over a storage room at the back, with new plumbing and flooring.
They price every line with the fit-out budget checklist, add a contingency, and fund the gap with an unsecured term facility sized on twelve months of consistent takings. The two new chairs are filled by a stylist on wages and a renter on a written chair-rental agreement — both of which show up cleanly in the bank account from day one.
Before you apply
- Twelve months of business bank statements
- Chair rental agreements and a list of staff and their arrangements
- Quotes for fit-out, plumbing and furniture
- Your lease, including any landlord consent needed for alterations
- If buying: the vendor’s accounts, client numbers and the sale agreement
What should a salon buyer check?
If you’re buying a salon rather than refitting one, look closely at:
- Client retention. How many active clients, and how many follow particular stylists who may leave?
- Staff and renters. Employment agreements, chair-rental agreements and any restraints.
- Product stock. How much is on hand, how fast it sells, and how it’s valued at settlement.
- Booking software and data. Whether client records transfer with the business.
How do you know if a refit will pay off?
Work it out per chair. If a refit adds two stations, estimate how many extra appointments a week they’ll realistically fill, the average price, and what the stylist or renter costs. Compare the monthly gain with the monthly repayment. If the numbers only work when every chair is full every day, the plan is too tight — build in some quiet weeks.
See what your salon could qualify for
Whether you’re adding chairs, refitting or buying the salon down the road, start your 60-second enquiry. We don’t do a credit check when you ask, your enquiry isn’t passed around to a crowd of lenders, and a person who understands how salons trade will ring you back. The more accurate your answers on the form — takings, chair rental and what the money’s for — the better the first conversation will be.
Frequently asked questions
Can a new salon owner get a loan?
It's harder without trading history, but an owner with years behind the chair and a loyal client book has a story to tell. Property security often helps a new salon get started.
How do lenders treat chair rental income?
As income, as long as it's documented and banked regularly. Written agreements with renters and consistent payments into the business account make it easy to verify.
Can I fund new basins and chairs?
Yes. Salon furniture and equipment are common funding requests. Plumbing for new basins often needs a licensed tradesperson, so include that in the budget.
What if my takings dip in January?
That's common — many clients get a cut before Christmas and then go on holiday. Lenders look at the whole year, so twelve months of statements tell the full story.