Quick answer
Barbers usually borrow small amounts for hydraulic chairs, clippers and a fit-out, then larger sums to open or buy a second shop. Equipment finance suits chairs and tools, a small unsecured loan or line of credit suits fit-outs and quiet patches, and acquisition finance suits buying an established shop. Because lenders size most loans on bank statements, banking every dollar of takings, including cash, is the single biggest thing you can do to borrow more.
Key points
- Barbering is low-cost to start but busy shops grow quickly, so the big finance decisions usually come at the second chair and the second shop
- Lenders can only count takings they see in your bank account, so unbanked cash shrinks your borrowing power
- Booking app reports showing repeat clients and walk-in volumes can strengthen an application from a young business
- Card surcharges were banned from 1 October 2026, while weekend and public holiday surcharges remain allowed
A barber shop is one of the cheapest businesses in Australia to open and one of the trickiest to borrow for. The startup cost is modest: a few chairs, good clippers, mirrors and a sign. The difficulty is that lenders size most small business loans on what passes through your bank account, and barbering has a long tradition of cash in the till.
The good news is that a busy barber with tidy banking is exactly the kind of small business many lenders like. Steady, repeat, everyday demand doesn’t disappear in a downturn. Haircuts are cheap and nobody stops needing one.
This page works through the finance decisions in the order most barbers meet them.
Stage one: setting up your first shop
At the beginning, you probably need less money than you think, and you’ll find fewer lenders willing to give it.
What you’re usually buying: hydraulic barber chairs, a backwash basin or two, clippers, trimmers and shavers, sterilising equipment, mirrors and stations, a booking system, a card terminal and signage. If the premises weren’t a salon before, add plumbing, electrical work and flooring.
What tends to work:
- Equipment finance for chairs and fixed gear. Because the equipment is the security, a newer business with a decent personal credit history can often qualify. See equipment finance.
- Your own savings for the fit-out, if you can manage it. Unsecured lenders rarely fund a business with no trading history.
- A small personal loan or business credit card for tools, used carefully. A business credit card is fine for small purchases you clear quickly, and expensive if you don’t.
If you’re already trading but haven’t hit your first anniversary, our page on loans for a business with an ABN under 12 months covers what lenders accept.
Why does cash matter so much?
This deserves its own section, because it’s the single biggest factor in how much a barber can borrow.
Most non-bank lenders use bank statement lending: they read six to twelve months of your business account and work out an affordable repayment from the money flowing through it. A lender can’t count what it can’t see.
Picture two barbers, each cutting about $8k worth of hair a week. One banks every dollar. The other takes half in cash and spends much of it before it reaches the bank. To a lender, the second barber looks like a business turning over $4k a week, and the offer will reflect that.
There’s a second problem. If the takings in your bank account and the figures on your BAS don’t match, lenders get nervous for obvious reasons.
The fix is simple, if a little dull: bank all your cash, regularly, into the business account. Keep doing it for at least six months before you apply. It’s the cheapest way to increase your borrowing power.
Stage two: adding chairs and people
Once the book is full and clients are waiting, the next step is usually more barbers. Here you’ll choose between employing staff and renting chairs.
| Employed barbers | Chair rental | |
|---|---|---|
| Your income | All service revenue | A weekly fee from each renter |
| Your costs | Wages, super, leave, workers compensation | Mostly just the space and shared overheads |
| Cash flow pattern | Payroll and super leave every pay cycle | Steady, predictable deposits |
| What lenders want to see | Payroll records and margins after wages | Signed rental agreements and regular payments |
If you employ staff, remember two 2026 changes. Award minimums rose 4.75% after the Fair Work Commission’s annual review, and since 1 July super has to be paid with every pay run rather than each quarter. A working capital loan or line of credit can help smooth the transition while you adjust prices.
Want to see what your shop might qualify for? Start your enquiry here. It’s quick and there’s no credit check for asking.
Stage three: a second shop, or buying one
This is where barbers borrow serious money. Two routes:
Opening a second shop. You’ll need a fit-out, equipment, a bond, and enough cash to carry the new shop’s wages while it builds a client base, which can take several months even with a strong brand. Lenders like to see the first shop performing well and paying its own way without you behind the chair every hour. Our page on funding a second location covers sizing.
Buying an existing shop. Often quicker to profit because the clients come with it, provided they stay. A lender will look at the seller’s takings, the lease and, above all, whether the regular clients will follow the new owner. A business acquisition loan is the usual tool, with property security for bigger deals.
What should barbers watch out for?
Merchant cash advances. Because barbers process lots of card payments, some funders offer advances repaid as a cut of each day’s card sales. They’re fast but often cost more in total than a standard loan. Compare the full dollar cost first; our merchant cash advance vs business loan comparison explains how.
The surcharge ban. From 1 October 2026, card surcharges are banned on eftpos, Mastercard, Visa and American Express. If you added a small card fee, that cost now comes out of your margin unless you lift prices. Weekend and public holiday surcharges are still allowed, which matters for shops that trade on Sundays.
Short leases. A lender funding a fit-out wants to know you’ll be in the shop long enough to use it.
An example: a two-chair shop goes to five
Fictional, for illustration only. A barber in suburban Adelaide has run a two-chair shop for three years, with one employed barber. Takings are strong and fully banked. The shop next door becomes vacant, and the owner wants to knock through, add three chairs and hire two more barbers and an apprentice.
The total is about $70k: building work and plumbing, three chairs and stations, and around three months of extra wages while the new barbers build their books. The owner funds the chairs with equipment finance and uses a small unsecured loan for the building work and wages, sized comfortably on three years of bank statements. Booking app reports showing a growing waitlist and high repeat visits help the application along. Our unsecured business loan calculator is a good way to test a figure like this before applying.
Ready to grow the shop?
You already know how to read a client in the chair. Reading a lender is mostly about clean banking and a clear plan, and you can sort both out.
When you’re ready, the enquiry form is a one-minute job, and simply asking leaves your credit file alone. What you send stays with our team instead of landing in the inboxes of half the finance industry. Someone here goes through the details of your shop, then picks up the phone. Give us honest takings, chair numbers and lease dates, because accurate answers are what let us match you properly on the first go.
Frequently asked questions
Can I get a business loan as a new barber?
It's possible, but options are narrower in the first six months. Equipment finance for chairs and tools is often available with a deposit or a good personal credit history. Most unsecured lenders want at least six to twelve months of trading in a business account before they'll lend on bank statements.
How much does it cost to fit out a barber shop?
It depends on the size of the shop and its condition. A shop that was already a salon may need little more than chairs, mirrors and paint, while a former retail space may need plumbing for basins, extra power points, flooring and signage. Get quotes first, because lenders size fit-out loans on real figures.
Do lenders accept cash-heavy businesses?
They accept the cash they can see. If your takings are banked regularly and match what you report on your BAS, cash income counts like any other. If cash is pocketed or spent before it reaches the bank, the lender has no way of counting it and will assess you on the smaller amount.
Should I rent out chairs or employ barbers?
Both work. Employing barbers gives you all the service revenue but adds wages, super and award obligations. Renting chairs gives you smaller, steadier income with fewer costs. Lenders accept either, but they'll want the rental agreements or payroll records to back up what's in your statements.
Can I buy a barber shop with a business loan?
Yes. Lenders will check the shop's real takings, how long the lease has left, and whether the regular clients are likely to stay once the seller leaves. A handover period where the outgoing barber keeps working for a few months often makes a lender more comfortable.