Learn how to secure affordable financing for salon equipment with flexible terms, fast approvals, and tax advantages.
Key takeaways
- Salon equipment costs: High-quality beauty equipment can cost between $2,000 to over $50,000, depending on the technology, brand, and function.
- Financing availability: Australian salons can access equipment financing from as low as $5,000 to $500,000 through specialist lenders, often with low-doc options.
- Repayment terms: Typical finance terms range from 1 to 7 years, with flexible monthly, seasonal, or deferred payment plans available.
- Tax advantages: Salon equipment finance may be tax deductible, and businesses can take advantage of the temporary full expensing scheme until 30 June 2025 for eligible purchases.
- Approval timeframes: Some lenders offer approval within 24-48 hours, especially for loans under $150,000 without needing detailed financials.
- Ownership options: Choose between equipment loans, leases, or rental agreements, depending on your cash flow and upgrade plans.
- Eligibility: Most lenders prefer businesses with at least 6–12 months of trading history, though startups may qualify with strong ABNs and personal guarantees.
Introduction
Setting up or expanding a salon in Australia is an exciting but expensive journey. With the rise in client expectations and demand for advanced beauty treatments, having the right equipment isn't optional—it's essential. From high-frequency facial machines to hydrodermabrasion systems, salon owners often face a significant upfront cost. That’s where salon equipment financing comes in.
This guide breaks down everything you need to know about salon equipment financing in Australia. Whether you're upgrading your treatment chairs or investing in the latest body contouring tech, we’ll walk you through eligibility, finance types, tax implications, application tips, and common pitfalls to avoid.
Why finance your salon equipment?
Financing salon equipment gives your business the flexibility to scale without draining your cash reserves. Here are the key benefits:
- Preserve working capital: Use your cash for day-to-day operations or marketing.
- Get equipment sooner: Access high-end technology without waiting to save up.
- Predictable cash flow: Fixed repayments help manage your monthly budget.
- Tax deductions: Interest and depreciation can often be written off.
- Keep up with trends: Leasing or renting allows easier equipment upgrades.
According to IBISWorld, Australia’s hairdressing and beauty services industry is worth $7.6 billion (2024), with customer demand for premium services growing—making modern equipment a competitive must.
What types of salon equipment can you finance?
Most commercial-grade beauty and salon equipment can be financed in Australia. Popular options include:
Facial and body machines
- IPL and laser hair removal devices
- Cryolipolysis (fat freezing) machines
- Radiofrequency skin tightening equipment
- Ultrasonic cavitation machines
Hair and nail equipment
- Shampoo units and basins
- Styling chairs and trolleys
- Nail polish stations and dryers
- Hair steamers and processors
General salon infrastructure
- Reception counters and POS systems
- Waiting lounge furniture
- Autoclaves and sanitation stations
- LED mirrors and ring lights
Types of salon equipment finance
1. Chattel mortgage (equipment loan)
You own the equipment outright while the lender holds security until it’s paid off.
- Fixed or flexible repayments
- Full tax deductions on interest and depreciation
- Most common option for business owners
2. Finance lease
The lender owns the equipment, and you lease it with the option to buy at the end.
- Lower upfront cost
- Suited for short-term use
- Lease payments usually tax deductible
3. Operating lease or rental
You rent equipment for a set period and return it or upgrade.
- Great for fast-depreciating tech (e.g., laser)
- Ideal for new salons with limited capital
- No ownership responsibilities
Who is eligible for salon equipment finance in Australia?
Eligibility depends on the lender, but the following are standard requirements:
- Registered ABN (active)
- Minimum 6–12 months trading (some accept startups)
- Decent credit score (ideally above 600)
- Proof of business income or bank statements
- Personal guarantees (for startups or low-doc loans)
How to apply: step-by-step process
Step 1: Assess your equipment needs
Make a list of what you need now vs what can wait. Consider future upgrades.
Step 2: Get quotes
Obtain supplier invoices or quotes for the equipment you plan to finance.
Step 3: Choose a lender
Compare banks, specialist lenders, or broker platforms that understand the beauty sector.
Step 4: Prepare documentation
Usually required:
- Valid ABN
- 6–12 months bank statements
- Driver’s licence
- Supplier quote
Step 5: Submit your application
This can often be done online. Some approvals come through in 1–2 business days.
Step 6: Review your contract
Check for:
- Fees (setup, early repayment)
- Balloon payments
- Ownership terms
Equipment maintenance and support plans
Financed salon equipment still needs regular upkeep to protect your investment and avoid costly downtime.
Why it matters
- Extend lifespan: Well-maintained machines last longer and perform better.
- Prevent revenue loss: Downtime during peak hours can hurt your bottom line.
- Protect warranties: Many require proof of regular servicing.
- Keep clients safe: Reliable, hygienic equipment reflects your professionalism.
What to check before you buy
- Warranty cover: Are parts, labour, and call-outs included?
- Service access: Are technicians available locally?
- Maintenance needs: What’s the care schedule (e.g., filter replacements, calibration)?
- Consumables: How often do you replace tips, bulbs, cartridges—and what do they cost?
Tip: Ask if a service plan or maintenance bundle can be added to your finance package.
Bundling software and fit-out into finance
You can often finance more than just your machines—fit-out, software, and salon tech can also be bundled.
What you can include
- Salon software: Bookings, POS, staff rosters, client CRM.
- Fit-out: Wash basins, mirrors, furniture, lighting, cabinetry.
- Signage and branding: External signs, digital displays, window graphics.
- POS systems: EFTPOS, scanners, receipt printers.
Why bundling helps
- One repayment: Simplifies cash flow with a single, predictable cost.
- Faster setup: Launch your salon fully equipped and client-ready.
- Custom branding: Tailor the space to suit your aesthetic.
- Tax-effective: May be eligible for instant asset write-off or depreciation.
Pro tip: Ask lenders about “bundled salon fit-out finance”—many offer it even if it’s not listed online.
Costs, terms and repayment structures
How much can you borrow?
Most lenders offer $5,000 up to $500,000. Some allow bundling multiple items.
Interest rates
Typical rates for equipment finance range from 6% to 14% p.a., depending on creditworthiness, loan amount, and term.
Repayment terms
- 12, 24, 36, 48, 60 or 84 months
- Weekly, fortnightly, or monthly instalments
- Seasonal or deferred options may be available for cash flow support
Tax advantages and government incentives
Temporary full expensing (until 30 June 2025)
Eligible businesses can immediately deduct the full cost of eligible salon equipment.
GST and depreciation
- Claim GST input credits upfront if you're registered
- Depreciation deductions available on owned equipment
Leasing deductions
Lease payments are generally fully tax deductible as an operating expense.
Pitfalls to avoid
- Overborrowing: Only finance what you truly need to avoid straining cash flow
- Ignoring total cost: Check fees, interest, balloon payments
- Not comparing lenders: Rates, terms, and flexibility vary widely
- Skipping equipment inspections: Ensure the gear is compliant and certified
FAQs on salon equipment financing
1. Can I finance used salon equipment?
Yes, but only some lenders allow this. The equipment must often be from a reputable supplier and meet safety standards.
2. Is salon equipment financing available for startups?
Yes, some lenders offer startup-friendly loans. You'll likely need a good personal credit score and to provide a personal guarantee or security.
3. Can I include installation or training costs in the loan?
Yes, many lenders allow the total financed amount to include installation, delivery, and initial training expenses.
4. What happens if I want to upgrade or exit the lease early?
You may be able to trade in equipment, but fees often apply. Review the exit terms closely before signing.
5. Will financing impact my business credit score?
Yes, if repayments are missed. On-time payments can actually improve your score.
6. Can I get salon equipment financing with bad credit?
Some non-bank and low-doc lenders may approve applicants with poor credit, though at higher interest rates.
Final thoughts
Whether you’re fitting out a new clinic or upgrading to the latest RF or IPL machine, salon equipment financing can make the investment more accessible and sustainable. With smart planning, the right lender, and tax-effective structuring, your beauty business can grow confidently and profitably.
Always compare quotes, read the fine print, and speak to a finance advisor or broker to secure the best outcome for your salon.
