Growth Guarantee Scheme for Beauty Salons and Spas - Apply
The Growth Guarantee Scheme for Beauty Salons and Spas is a UK financial support initiative designed specifically for beauty and wellness businesses seeking to expand their operations. This government-backed scheme provides guaranteed loans to help salons and spas secure financing that might otherwise be unattainable without a guarantee, enabling them to invest in growth opportunities, upgrade facilities, and enhance service offerings. The scheme targets businesses in the beauty sector looking to develop their premises, purchase new equipment, or expand their service range, with funding decisions typically made within 1-4 weeks depending on the specific program.
- Quick and easy application process
- Loan disbursed within 24 hours
- No additional charges for early repayment
What are the benefits of Growth Guarantee Scheme for Beauty Salons and Spas?
The primary benefit of the Growth Guarantee Scheme is providing access to finance that may not otherwise be available to beauty salons and spas, with potential repayment under favorable terms and targeted support for business recovery and growth. Businesses can access amounts ranging from £500 to £10 million, with interest rates typically between 4% to 6% for most guaranteed schemes, and funds becoming available within days after approval. This scheme offers beauty businesses the opportunity to secure working capital, invest in new technology, expand their premises, or rebuild inventory without requiring extensive collateral, making it particularly valuable for established businesses with growth potential but limited security options.
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What are the different types of Growth Guarantee Scheme for Beauty Salons and Spas?
Recovery Loan Scheme
The Recovery Loan Scheme supports UK-based beauty businesses with viable propositions post-COVID-19 impact, offering loans from £25,001 to £10 million with terms of 6 to 72 months. Eligibility requires evidence of trading adversely affected by the pandemic, and applications typically involve submitting a business plan, financial projections, and demonstrating COVID-19 impact, with decisions usually made within 1 to 2 weeks.
Start Up Loan Scheme
The Start Up Loan Scheme targets UK residents over 18 with viable business plans for businesses starting or operating for less than 24 months, offering amounts from £500 to £25,000 with 12 to 60 month terms. This scheme features a fixed 6% interest rate and requires applicants to complete online applications, submit detailed business plans, and potentially attend interviews, with decisions typically made within 2 to 3 weeks.
Enterprise Finance Guarantee
The Enterprise Finance Guarantee supports UK SMEs unable to provide sufficient security for standard commercial loans, offering amounts from £1,000 to £1.2 million with terms from 3 months to 10 years. This scheme is available to beauty salons with positive business plans but limited collateral, with interest rates varying based on base rate plus lender's risk assessment, and decision times extending up to 4 weeks.
What is the Growth Guarantee Scheme for Beauty Salons and Spas?
Application Process and Decision Timelines
The application process for Growth Guarantee Schemes typically requires submitting a comprehensive business plan, financial history, and detailed information about the requested loan's intended use, with some schemes potentially requiring attendance at interviews. Initial decisions range from 1 to 4 weeks depending on the specific scheme, with funds typically becoming available within days after approval. Factors affecting decision speed include the completeness of the application, responsiveness to lenders' queries, and the specific type of financial product being requested. Businesses should prepare thorough documentation including financial projections, evidence of trading history, and clear explanations of how the funds will support growth objectives to ensure smooth processing.
Regulatory Compliance and Requirements
All lending under Growth Guarantee Schemes must comply with the UK's Financial Conduct Authority (FCA) regulations, with SME finance schemes typically operating under stringent anti-money laundering (AML) practices and adhering to lending standards set by the FCA. These regulatory requirements ensure that lending practices are transparent, fair, and protect both businesses and lenders, with compliance checks forming an integral part of the application assessment process. Beauty salons and spas seeking funding must ensure their business operations and financial practices align with these regulatory standards, which may involve demonstrating proper financial record-keeping, transparent business practices, and adherence to industry-specific regulations governing beauty and wellness services.
Borrowing Capacity and Rate Considerations
Borrowing amounts under Growth Guarantee Schemes range from a minimum of £500 to a maximum of £10 million, with factors affecting the approved amount including business size, credit history, viability of the business plan, and specific lender criteria. Interest rates typically range from 4% to 6% for most guaranteed schemes, with factors affecting rates including credit risk, loan amount, repayment term, and prevailing economic conditions. Additional fees may include possible origination fees, late payment charges, or early repayment penalties, so businesses should carefully review all terms before committing. Understanding these factors helps beauty businesses determine appropriate loan amounts and structure their applications to maximize approval chances while securing favorable terms.
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