What do barbershops usually need funding for?
Mostly chairs, space and growth. A barber leaving chair rent needs a lease deposit, chairs and plumbing for sinks. An established shop might add stations, upgrade electrical for clippers and lighting, build a waiting lounge or open a second location. Walk-in-heavy shops also use short-term funding to smooth out slower weeks.
- Chairs and stations: hydraulic barber chairs, stations, mirrors, sterilization and tool storage.
- Build-out: sinks and plumbing, dedicated outlets for clippers and trimmers, lighting and flooring.
- Customer space: a lounge, a retail wall for grooming products and signage.
- Growth: a second shop, a lead barber's first months or an added service.
How does chair rent affect a barbershop's funding?
Chair rent can steady a shop's income, but funding partners count what's actually deposited, not what you expect to collect. A shop renting several chairs with written agreements and rent flowing into the business account presents a more predictable file. Rent collected in cash or through personal apps is harder to document and may not count.
If you're planning a shop around chair rent, size the build-out to realistic demand. Empty stations still cost money to build. For the full move from renting a chair to owning the shop, read leaving booth rent to open your own barbershop.
Why do walk-in and cash deposits matter so much?
Because many barbershops run on walk-ins and cash, and undeposited revenue is invisible to funding partners. A packed Saturday that never reaches the bank looks smaller on paper than it was. Depositing cash consistently, taking card payments and using a business account turns real traffic into revenue a funding partner can actually review.
Card processing statements show steady client traffic clearly, and bank deposits confirm the rest. If your shop is mostly cash today, a few months of consistent deposits before applying can meaningfully change the options available. Revenue-based financing leans on those deposits most heavily, though it usually costs more.
How are barbershop build-outs financed?
Most shops use a term loan for plumbing, electrical, flooring and finishes, and equipment financing for barber chairs, stations and furniture. Funding partners review deposits, credit, the lease and a contractor bid. A former barbershop or salon space can lower costs if its plumbing and electrical can be reused, so ask what the space was before.
Barbershop build-outs are often simpler than hair salon build-outs, since there's usually no full backwash area, but electrical for clipper stations and lighting adds up. See build-out and expansion term loans for how draws and lease length work.
When is a second barbershop worth funding?
When the first shop's chairs stay full, walk-ins get turned away and a trusted senior barber is ready to lead a new location. Funding partners usually underwrite the first shop's deposits, so its strength carries the file. Place the second shop far enough away to reach new clients without splitting the ones you already have.
Moving a barber who already has a following to the new shop helps it start busier. Chair rent at the new location can offset rent early, but plan payments around actual deposits rather than projected rentals.
Can a barbershop fund adding new services?
Yes. Shops adding services such as scalp micropigmentation, facials or a retail grooming line typically fund training and supplies with working capital and a private treatment area with a small renovation budget. Funding partners review current deposits, not projected bookings. BeautyFundr does not give licensing, medical or legal advice; rules vary by state, so confirm requirements first.
Start small: train one barber, prove demand, then expand the service. Retail grooming products can add margin between cuts if you track what sells and reorder only those lines.
What you’ll typically need
- Recent business bank statements
- Card processing statements
- Written chair rental agreements, if you rent chairs
- Barber chair quote or contractor bid
- Lease
- Government-issued photo ID
Frequently asked questions
Can barber chairs be financed?
Yes. Barber chairs and stations from a dealer can be financed with equipment financing, often several on one agreement with delivery included. Used chairs from established dealers are sometimes financeable too. Because the chairs secure the agreement, equipment financing often costs less than unsecured funding for the same purchase.
Does chair rent from other barbers help me qualify?
It helps when it's documented and deposited. Funding partners review actual deposits, not projected chair rent, and look at how stable the arrangements are. Written agreements and a consistent history of rent reaching the business account make that income easier to count toward what your shop can carry.
Is a barber suite a smaller first step than a full shop?
Often, yes. A suite typically needs less build-out and fewer chairs, so startup costs and risk are lower. A full shop gives you room to rent chairs and grow a team. Compare the monthly costs of each against your current book, and read the salon suite owners page if a suite appeals to you.
My shop is mostly cash. Can I still get funded?
Possibly, but undeposited cash doesn't show up in a review. Deposit cash consistently into a business account and encourage card payments for a few months before applying. Requirements vary by product and funder; many look at time in business, monthly revenue and credit, and deposits are how monthly revenue gets proven.
What should a barbershop avoid when borrowing?
Avoid using short, expensive funding for long-lived projects like a build-out, and avoid stacking daily-payment advances. If existing daily debits already strain your shop, ask about options to lower your payment or stretch the term before adding new funding. Size any build-out to real demand, not best-case chair rent.
Upgrade the shop or add another
Tell us about your barbershop and the move you're planning next.
Updated September 14, 2026 · BeautyFundr Funding Team