How much funding can a salon get, and how fast?
Owners ask two numbers before anything else: how much, and when. Both come straight off your bank statements, and both are published here.
The short answer
A salon, spa or barbershop typically qualifies for a working capital advance of 75 percent to 150 percent of one month's business bank deposits, within a published range of $10,000 to $2,000,000. A complete file gets an offer in about 4 business hours and money in the operating account within 24 hours; a clean file signed before 11:00 AM ET generally funds the same day. Larger or longer-dated needs move to a term loan, decided in 3 to 7 business days, or an SBA loan, which closes in 10 to 45 days.
How the amount is sized off your deposits
Backbar Capital sizes off the business bank statement, not a processor's feed, because that is where all five kinds of salon money land: card settlements, booking-app payouts, cash services and deposited tips, booth rent, and retail off the wall. A lender reading one processor's feed sees a fraction of that and sizes the offer off the fraction.
Inside the 75 to 150 percent band, four things move a file up or down:
- Average daily balance. A balance that stays comfortably positive between appointments supports the top of the band. A balance that touches zero before payroll every two weeks supports the bottom.
- Deposit count and consistency. Many deposits spread across the month read as a stable book of clients. A few lumpy transfers read as something an underwriter wants to ask about.
- NSF pattern. Three or fewer NSFs in 90 days is still a workable file; a run of them in the most recent month pulls the amount down.
- Your slowest month. January and February run soft for almost every salon. We read that as the shape of the business, and if your year has a real slow season you send a fourth statement so the dip is seen in context rather than as the trend.
The approved amount is not always the amount to take. An advance is a fixed total payback for the whole term, so for a recurring four-week gap a line of credit, charged only on the drawn balance, costs less.
How fast, step by step
- Four minutes to apply. Name, EIN, monthly revenue, what the money is for, and your 3 most recent months of business bank statements. Checking your options does not affect your credit.
- About 4 business hours to an offer. An underwriter, not a score, reads the file. You see the amount, the total payback, the payment and the schedule before you sign anything.
- Two pages to sign. The contract is 2 pages. The payment is a fixed daily or weekly ACH from your operating account, never a split of your card settlements, and there is no holdback and no lockbox.
- 24 hours to funded. Signed before 11:00 AM ET on a clean file, the money generally lands the same day; otherwise the next business day.
The clock starts when the file is complete; a missing statement is the usual reason 24 hours becomes three days.
Amount and speed by product
| Product | Amount | Sizing basis | Decision | Funded | Minimum credit score |
|---|---|---|---|---|---|
| Working capital | $10,000 – $2,000,000 | 75% – 150% of one month's deposits | ~4 business hours | 24 hours | None |
| Line of credit | $25,000 – $500,000 | Deposit history; reviewed every 6 months | 1 – 3 business days to open | Same business day per draw | 600 |
| Invoice factoring | $10,000 – $5,000,000 facility | Up to 90% of approved B2B invoice value | 3 – 5 business days to open | 24 hours per invoice | None |
| Term loan | $50,000 – $5,000,000 | Cash flow, tax returns, debt schedule | 3 – 7 business days | At closing | 650 |
| SBA 7(a) & Express | $50,000 – $5,000,000 | Full underwriting; 10% down on an acquisition | Express 10 – 21 days; 7(a) 30 – 45 days | At closing | 680 |
What it costs: the published example
The site's funding estimator uses one illustration, and it is worth reading because every number in it is labeled. A $150,000 working capital advance over 12 months, repaid daily, carries a total payback of $190,500, a cost of funding of $40,500, and a daily payment of $756 across 21 business days a month, or $3,664 weekly. The payment rounds up, so the debit is never larger than the number you were shown. Paid off within the first 30 days, the prepayment discount of up to 30 percent off the remaining cost of funding would return up to $12,150. That is an illustration, not an offer; your real numbers depend on underwriting your statements.
What you'll need
- The 4-minute application: name, EIN, monthly revenue, use of funds.
- Your 3 most recent months of business bank statements, complete to the end of the most recent month; 4 if your year has a real slow season.
- Nothing else for working capital: no tax returns under $500,000, no business plan, no collateral.
- For a term loan: 6 months of statements, 2 years of business tax returns, a YTD P&L and balance sheet, and a debt schedule.
- For SBA: 3 years of business and personal tax returns, SBA Forms 1919 and 1920, and a business plan with projections if you are buying a salon.
When you need more than the band allows
If the number you need is well above 150 percent of a month's deposits, the need is usually a multi-year asset: a second suite or location, a full remodel, a partner buyout. Those belong on a term loan over 36 to 60 months or, if you are buying the salon or the building, on SBA. A nine-month advance sized to the top of the band is the wrong tool for a five-year asset. Call (888) 896-5559 with your monthly deposits and what the money is for and we will tell you the band you fall in before you apply.
Related: compare all five products · all guides & calculators.
Want the real number instead of the general answer? Four minutes and three bank statements gets you an offer in about four business hours. Checking your options does not affect your credit.
Related questions.
How much can a salon get on a working capital advance?
Typically 75 to 150 percent of one month's business bank deposits, within a published range of $10,000 to $2,000,000. Where you land in the band depends on average daily balance, deposit consistency, NSF pattern and your slowest month, all read off three months of statements.
How fast can a salon get funded?
Offer in about 4 business hours on a complete file, money in your account within 24 hours. A clean file signed before 11:00 AM ET generally funds the same day. A line of credit opens in 1 to 3 business days; a term loan decision takes 3 to 7 business days; SBA closes in 10 to 45 days.
Do cash services, tips and booth rent count toward how much I qualify for?
Yes, when they are deposited. Backbar Capital underwrites the business bank statement, not one processor's feed, so card settlements, booking-app payouts, deposited cash and tips, booth rent and retail sales all count toward the deposit figure the advance is sized from.
What does a $150,000 advance cost?
In the site's published illustration, a $150,000 working capital advance over 12 months repaid daily has a total payback of $190,500, a cost of funding of $40,500 and a daily payment of $756 across 21 business days a month. Paid off within 30 days, the prepayment discount would return up to $12,150. It is an illustration, not an offer.
What slows a 24-hour funding down?
An incomplete file. The clock starts when the application and all three statements are in and the most recent statement runs to the end of the month. Missing pages, a seasonal file without the fourth statement, or signing after 11:00 AM ET move funding to the next business day.
Is the amount I am approved for the amount I should take?
Not always. An advance is priced as a fixed total payback for the whole term, so taking the top of the band for a recurring four-week gap costs more than a line of credit, which charges only on what is drawn. Match the amount and the product to the job.
Done reading? Get a real number.
Four minutes and three bank statements. Offer in about four business hours, funded in 24.