Salon finance: equipment, products and supplier costs for established businesses

Check the business fit before planning the funding

Salon finance searches cover very different businesses: a new sole trader, an established single location and a company operating several sites. Hello's stated service is for established UK limited companies and LLPs with at least £1 million in annual revenue. Many microbusinesses will be outside that scope.

For a group, establish which company will buy the equipment and make repayments. Combined trading across a brand does not automatically establish the eligibility of every legal entity. The provider assesses the borrower and the specific purchase.

Within an eligible business, a supplier enquiry might concern chairs, wash units, mirrors, booking-system hardware, product stock or approved refurbishment-related invoices. Each payment needs assessment; the examples are not a blanket list of accepted purchases.

Buying another salon, acquiring premises and funding a startup are separate questions. This guide focuses on an existing business purchasing from vendors.

Build the refit budget around a working salon

Start with the operational purpose: replacing worn furniture, improving workflow or equipping an additional site. List the items and the installation work required. Ask the supplier to confirm dimensions, service requirements and how the equipment will fit the space.

Include removal, delivery, plumbing or electrical work where needed, fitting and any professional costs. Identify which costs are invoiced by the equipment vendor and which come from separate contractors. A provider approving one invoice may not fund the whole project.

These are invented costs, not market prices or an offer. Use actual supplier quotations and confirm tax treatment with the business's accountant. Build an allowance for delay without assuming additional credit will be available later.

Test the plan against bookings you can deliver

A new chair creates capacity only when qualified staff, working space and customer demand are available. Use realistic booked hours and service mix, then account for cancellations, quieter days and the time required to build new demand.

For a refurbishment, plan which services can continue and which appointments must move. A phased project may reduce disruption, but compare any extra installation or delivery cost. Agree the completion sequence with suppliers and contractors rather than assuming every stage will finish on the same day.

Forecast cash after staff costs, products used during treatments, premises, tax and existing finance. Gross bookings are not spare cash for repayments. If several sites contribute to the borrowing company's receipts, still examine whether weaker performance at one location affects the group forecast.

Compare the offered first repayment date with reopening and installation dates. Finance payments do not automatically wait for the salon to return to its usual booking level.

Keep product orders on their own cash cycle

Professional products used in treatments and retail products sold to customers need different stock forecasts. Record usage or sell-through by line, not just the total order value. Slow-moving colours, changed packaging or a new range can leave cash tied up after the busy period ends.

Ask about supplier terms, minimum order quantities and returns. Compare a bulk discount with storage, expected use and the entire funding cost. Weekly replenishment should not automatically become a twelve-month repayment commitment each time it is ordered.

HSE's guidance for hairdressers and beauticians addresses risks associated with products and workplace exposure. Purchasing and refurbishment plans should account for appropriate storage, equipment and controls through the business's normal safety processes. Finance approval does not decide whether a treatment or product is appropriate.

If the purchase includes specialist treatment equipment, establish training, insurance, servicing and any relevant professional requirements with qualified advisers before ordering. This article offers purchase-planning information, not clinical or treatment advice.

Compare ownership, support and the full payment schedule

Use the same equipment specification when comparing a funded supplier purchase with leasing or hire purchase. Include compulsory support, software or product commitments so the quoted amounts cover equivalent arrangements.

For imported furniture or equipment, confirm delivery, support and the exact payment currency. Payments in most currencies can be considered, subject to the provider supporting the vendor, destination and transaction. Read our overseas supplier guide before relying on an international payment plan.

Prepare a clear salon supplier enquiry

For an eligible business, approved funding can be up to £1 million with repayment terms up to 12 months. Hello charges £0 for the introduction. The lender's charges, security and any personal guarantee are separate and should be understood before accepting.

Have the purchasing company's details, itemised quotes, installation dates and cash forecast ready. Keep customer booking records and personal treatment information out of the initial enquiry; aggregate business information is enough to explain the purchase need.

Once the company and transaction fit are clear, enquire about salon supplier funding. If product inventory is the main need, our retail stock guide explains how to test sell-through and seasonal buying.

Questions, answered.