spa business loans

Best Spa Business Loans

Quality treatments and spa equipment can be pricey, particularly when you are just starting out. Furthermore, the ongoing expenses can be too much for some companies. On this page, our experts have compiled a list of the best small business funding options for spa business owners, to get you started or to keep you afloat.

Financially Reviewed by Thomas J. Brock

At a glance Health and wellness is a large industry made up of many niche markets. You will need to differentiate your company from the competition, by using different treatments, equipment, and brand positioning. This article dives into small business funding opportunities for your spa salon, breaking down the costs and focusing on the types of loans you may need to get your spa business off the ground.

Overview of the Best Spa Business Loans 

The table below provides a summary overview of the best spa business loans on the market in 2021.

Financing Need

Best Loan Type

Loan Features 

Recommended Lender

Inventory purchases

Startup loan

  • Amount: Up to $50,000
  • Term: Up to 6 years
  • Interest: Varies, with most loans ranging from 8.00% to 13.00%
  • Time to get the loan: Varies


Current expenses, utility payments, renovations, or construction

Small business loan (SBA)

  • Amount: Up to $5 million (depending on the loan type, lender, and the company)
  • Term: Up to 25 years
  • Interest: As low as 4.75%
  • Time to get the loan: Up to 2 weeks


Solve current financial issues, hire specialists

Short-term loans

  • Up to $250,000
  • Interest: 16% - 67.5%
  • Loan Term: 6 - 18 months
  • Time to get the loan: Typically funding is completed within three business days 

Funding Circle

Buy or lease new equipment

Equipment financing

  • Amount: Up to $150,000
  • Term: Typically, 36 months to 10 years
  • Time to get the loan: Up to 24 hours
  • Lease new or pre-owned equipment

National Funding

Invest in new technologies, upgrade equipment, expand business, plan marketing strategies


Merchant Cash Advance

  • Amount: From $5,000 and up to $500,000
  • Term: No set terms
  • Interest: One-time factor rate
  • Time to get the loan: 72 hours after approval

Fora Financial

Best Spa Business Loans Explained

In this section, we will explore how you can cover your spa business loan expenses by looking more closely at the top four loan types mentioned above. 

1. Fundera - Best for Startup Loan

Startup loans are a type of funding that cover small business funding from the ground up. Usually, it’s harder for startup businesses to attain traditional bank loans or SBA funds, because startups generally don't have enough credibility.

Although Startup loans are generally smaller and can have higher interest rates, they're an excellent option for small businesses that are at  the start of their journey. This loan amount might not cover all your expenses, but you can use it to buy equipment, carry out day-to-day operations, or to upgrade your salon.

Fundera is a small business lender willing to work with startups and companies with a little-to-no track record. It's easy to get started with this company, and the processing times range from a few days to a few weeks, depending on the loan you're applying for.


2. StreetShares - Best for SBA Loans

SBA is a great option for small businesses with a good credit score and good loaning credentials. SBA is a government program that helps business owners via licensed lenders. The Small Business Administration provides licensed lenders with a guarantee, securing a promise of repayment if the financed businesses fail.

This loan type can be used to cover a range of expenses from construction and renovation to working costs and equipment purchases. An SBA loan can help your business with the costs of its initial launch through to the costs of its day-to-day operations.

If you want an easy-to-access solution for your SBA loan, we recommend using StreetShares.  With competitive fees and affordable interest rates, this lender connects businesses with investors finding the commonality between the two parties.   

3. Kabbage - Best for Short-Term Loan

Short-term loans are helpful during slow seasons and minor setbacks. They're similar to traditional term loans, however, the repayment period is relatively short (usually up to three years). Short-term loan lenders also charge higher rates. The nonpayment and late fees are also quite high.

Kabbage offers multiple short-term business loans. They are our number one choice of short-term loan providers as they boast a straightforward online review process and are generally quick to approve loans. You don’t have to meet a minimum credit score to get a short-term loan with Kabbage, however, you must have been in business for more than one year and your business must have revenues of more than $50,000

4. National Funding - Best for Equipment Financing

You will likely need to invest a lot of money buying equipment for your spa business. Specialized treatments and professional chairs can cost tens of thousands of dollars. Leasing or outright buying these items can be costly.

This loan will help you acquire equipment, avoiding the initial down payment. Upon closing the loan, you can choose to keep the equipment or upgrade.

We recommend National Funding for equipment financing loans. This lender offers loans of up to $150,000 for small business equipment leasing. National Funding only requires a credit score of over 575 and an equipment quote from the vendor. If your business has been around for at least six months, National Funding is an excellent option.

national funding

5. Fora Financial - Best for Merchant Cash Advance

A merchant cash advance is a sound option for Spa businesses who want to expand their business or just need cash fast. This financial service is also great to use for payrolls or to improve marketing strategies to reach a broader market.

If your business is in need of fast cash for repairs or to invest in new equipment to meet new demands, Fora Financial is highly recommended. This type of loan is also ideal if you need to expand your business or to pay for unexpected expenses.

To get approved for a merchant cash advance you don’t need any collateral and can get approved in as little as 24 hours. There are also no restrictions on what you want to use the money for, so you can use it for what and whenever you need.

Recommended Reading: The Best Beauty Salon Loans for 2021

How Much Does it Cost to Open a Spa Business?

Luxury amenities, expensive treatments, pricey equipment, qualified specialists, and good branding are all important, because spa salons don't sell the treatment, they sell "the experience." Setting up and operating a business like this isn't cheap.

Here's a breakdown of the costs:

  • Space: The costs will vary depending on whether you choose to own, lease, or rent your physical spa space. In all cases, we're talking hundreds of thousands of dollars. Whether you're going for a luxury or authentic feel, you'll have to invest some real money in construction and renovation.
  • Furniture and equipment: You will need to create the right atmosphere and functionality for your customers and staff. Your spa professionals need specialized equipment to do their job perfectly. In short, furniture and equipment is going to be your second biggest expense.
  • Treatment products: You will also need to spend money on skincare products, paper towels, Q-tips, and the like. Keeping your spa area clean and washing towels and gowns after each use is a top priority, however, such things will increase your utility bill. 
  • Professional fees: A lawyer, an accountant, an interior designer, or an architect can help your business stand out from the competition, but their salaries aren't exactly cheap.
  • Permits and licenses: The authorities will require specific operational licenses or fees for various permits, depending on your location.
  • Online presence and appointment software: Digital presence is one of the essential components of any brand. You need a website that bears the same feeling as your amenities. Your website also needs to be functional so that your potential client can get an appointment easily. You will also need to take advantage of social media.
  • Operating expenses: Your ongoing operating expenses will vary according to the size of your salon. You will likely need separate capital for ongoing expenses before you start earning money.

All in all, a mid-range spa of 2,500 square feet will cost you about $500,000, but if you plan to own a high-end facility, the costs could go as high as $1 million, plus operating expenses.

Recommended Reading: Best Hotel Financing Loans for 2021

spa business

How to Choose the Best Spa Business Loans

There are a few key points you should keep in mind when choosing the best spa business loan for your needs. First of all, don't simply apply for the first loan you find. Comparing a few similar suitable options will let you make a calculated choice. You should compare the terms and amounts of each suitable loan. Furthermore, you should make sure you prepare your loan application thoroughly. You don't want to go through the bureaucratic process only to find that you are missing a document. 

Recommended Reading: Best Restaurant Business Loans for 2021

See Our Additional Guides on Industry-Specific Loans

The Bottom Line

Opening and maintaining a spa business is no easy task. Starting a spa business will be costly during both the startup period and throughout the lifetime of the business. It may get even harder to manage and more costly as your clientele gows. Having a reliable loan lender can help you to manage the financial load. All our recommended lenders offer you fast and easy application processes, and most of these processes can be completed online. Now it’s up to you to select a suitable lender and get started.