Business funding for med spas
Med spas buy some of the more expensive equipment in personal care, laser and aesthetics devices especially, and almost all of the revenue is cash-pay by card since it is largely not covered by insurance. That steady, visible card revenue is what most lenders in this space look at first.
- One application, several lenders
- No credit pull to see your options
- No fee to you, ever
Common funding needs
- Laser, injectable or other aesthetics equipment
- Building out or expanding treatment rooms
- Working capital for payroll and product between busy weeks
- Marketing to fill new equipment's schedule
What usually fits
Products that usually fit
- Equipment financing for laser and aesthetics equipment.
- Term loan for a build-out or second location.
- Merchant cash advance repaid from daily card sales, for a faster or smaller need.
- Line of credit for product and payroll between busy stretches.
How a merchant cash advance works for you, and when it is too expensive
Since most med spa revenue is cash-pay by card, an MCA is repaid as a fixed percentage of those daily card sales, smaller on a quiet day and larger on a busy one. The factor rate, typically 1.15 to 1.45, fixes the total cost up front no matter how quickly it is repaid, and it becomes expensive to carry if a second advance stacks on top of an existing one, since both pull from the same card batch. For a laser device or other equipment that will be used for years, compare the total payback against equipment financing first, since it is usually the cheaper way to buy something that holds value.
Compare term loans, lines of credit, cash advances and equipment financing side by side →
Separately, our sister company CELER Merchants offers card processing.
Illustrative example
A worked example
A med spa finances $70,000 of laser equipment over 5 years at an illustrative 7-16% a year. Payments run about $1,386–$1,702 a month, or $83,165–$102,136 total.
The same $70,000 as a cash advance at an illustrative factor of 1.20-1.35 means paying back $84,000-$94,500, which is why equipment this expensive is usually financed as equipment rather than as an advance.
Illustrative example only, not an offer or a quote. Rates, fees and terms are set by each lender and depend on your business. Fees are not included unless stated.
Underwriting
What lenders look at
- Monthly card and bank deposits
- Ownership structure and any required medical director or licence arrangement
- Existing equipment payments
- Lease length at the current location
- Owner credit
Honestly
Who this is not for
- A med spa that just opened with no deposit history
- Financing a device the current client base cannot fill a schedule for
- Consumer financing for individual patients: we only refer business financing for the spa
If borrowing does not make sense, we will say so.
Are you a match?
Lender network minimums
Close but not quite there? Apply anyway and we will tell you honestly what is possible.
*Best available terms from lenders in our network. Every lender sets its own criteria; approval, amount and funding time are decided by the lender and not guaranteed.
| Time in business | 1 year+ |
|---|---|
| Monthly bank deposits | $20,000+ |
| Credit score | 500+ |
| Bank account | Business |
| Fee to you | $0 |
| Credit pull to start | None |
FAQ
Med spas funding questions
Can a new med spa get equipment financing?
Sometimes, often with a down payment. Some lenders want a few months of deposits first.
Do you arrange patient or client financing for treatments?
No, only business financing for the spa itself.
Is a cash advance a good fit for laser equipment?
Usually not for the equipment itself; equipment financing is typically cheaper. An advance can make sense for a smaller, faster need.
Do lenders ask about medical director arrangements?
Some do, depending on the state or province and the treatments offered. Have that documentation ready if asked.
Guides
Guides for med spas
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Where we work: all US states · all Canadian provinces
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