Chattel mortgage · Beauty and salons
Chattel mortgage for beauty and salons
Beauty and salon finance is lending for hair, beauty and cosmetic clinics, funding treatment equipment such as aesthetic lasers, salon fit-outs, retail stock and the working capital around seasonal trade.
How a chattel mortgage works for beauty and salons
Mobile beauty and hairdressing operators, and multi-site owners running between salons, finance the vehicle as a chattel mortgage: you own it from day one and, if registered for GST, claim the GST on the purchase price in the next BAS. A fitted-out van carrying mobile treatment equipment can be financed as a single asset including the fit-out. Set the balloon against realistic trade value, and remember business use percentage determines what your accountant can claim.
The cash-flow pattern we plan around
Appointment-based income paid at service, peaking sharply in November and December and dipping in late January and February.
What beauty and salons typically fund
- Aesthetic lasers, IPL and skin treatment devices
- Salon fit-out, chairs, basins and mirrors
- Treatment beds and sterilisation equipment
- Retail product stock
- Booking, POS and marketing systems
Chattel mortgage for beauty and salons: the numbers
| Typical amounts | $10,000 – $2,000,000 |
|---|---|
| Term | 12–84 months |
| Indicative rates | 6.9% – 14.5% p.a. |
| Repayments | Monthly (weekly or fortnightly available) |
| Speed | 24–48 hours for low-doc up to $150k; longer for full-doc |
| Documents beauty and salons usually need | ABN and lease for the premises · 6 months of bank statements and merchant statements · Equipment or fit-out quote from the supplier |
Rates are indicative, change without notice and depend on the lender, product, asset, term and your credit profile at the time of application. They are not an offer of finance. Comparison rates, where shown, are true only for the example given.
Key terms
Salon equipment finance
Salon equipment finance is secured lending for hair and beauty equipment — styling chairs, basins, treatment beds, sterilisers and aesthetic devices — typically written over two to five years against the equipment.
Aesthetic device payback
Aesthetic device payback is the number of treatments required for a laser or IPL machine to cover its finance repayment, used to test whether a device purchase is supported by realistic client demand.
What is a chattel mortgage?
A chattel mortgage is a business loan used to buy a movable asset (a chattel) such as a ute, truck, excavator or equipment. The business takes ownership immediately and the lender registers a security interest over the asset until it is paid off.
Chattel mortgage balloon payment
A balloon is a lump sum, typically 0–40% of the purchase price, paid at the end of the term. It lowers regular repayments but must be paid, refinanced or covered by selling the asset when the term ends.
Questions from beauty and salons
Can a salon or clinic finance an aesthetic laser or IPL device?
Yes. Lasers, IPL, skin and body devices are financed for salons and cosmetic clinics over three to five years, with established businesses usually approved on low documentation. Lenders assess the device’s brand and resale market and the salon’s trading history, and handpieces and training can be included.
Can a salon fit-out be financed?
Yes. Basins, chairs, mirrors, joinery, lighting, flooring and signage can be funded under one fit-out facility with the shopfitter and suppliers paid as the work progresses, repaid over three to five years within the lease term. Equipment is often financed separately at a sharper rate.
How do salons fund the late-January and February dip?
A line of credit drawn as needed and repaid when trade returns is the cheapest option, and a short unsecured loan covers retail stock ahead of the November and December peak. Applying while trade is strong in spring gets the best terms.
Can a new salon owner get finance?
Yes, with the right lender. New salons are approved with a deposit, a signed lease, industry experience and a clean personal credit file, and equipment from major brands is easier to finance than unbranded devices. Established salons qualify on bank statements, often within a day.