Starting or expanding a medical spa can be a rewarding business venture, especially if cashflow is critical, but acquiring high-end medical and aesthetic laser equipment requires significant capital. For small businesses, especially those with bad credit, small just testing the market types of startups, securing traditional loans from banks or credit unions can be challenging. Fortunately, there are several viable funding options tailored to meet the needs of medical spa owners, regardless of credit history. Even with low credit, sub-prime credit or poor credit have a chance.

Choosing the Right Funding Option

Medical spa owners should carefully evaluate each funding option based on their current business stage, credit profile, and long-term goals. Improving credit scores and maintaining accurate financial records can also increase eligibility for better funding opportunities in the future. Partnering with a professional financial advisor or funding specialist can provide valuable guidance and help you make informed decisions.

But most of the time your spa and clinics only need two types of funding:

Equipment Leasing and Financing if they want to upgrade or expand to new location

Working Capital Loan when they want to expand and keep cashflow as a cushion.

By leveraging these funding options, medical spas can acquire the advanced medical and aesthetic laser equipment they need to thrive, while managing cash flow effectively and building a sustainable business model.

 1 – EQUIPMENT LEASING & FINANCING

Medical Spa Equipment Leasing and Financing

Leasing and financing options specifically designed for allow businesses to acquire state-of-the-art medical spa equipment, med spa chairs, med spa supplies with minimal upfront costs. Leasing enables you to use the equipment while making manageable monthly payments. Financing options often include flexible terms, such as low-interest rates, deferred payments, and skip-payment plans, making it an excellent choice for businesses at any stage. Compile all your invoices, Liberty Capital will finance all of them and lump it into one monthly payment up to 5 years.

Benefits:

• Low capital outlay
• Access to the latest technology
• Tax advantages through Section 179 deductions.
• Flexible payment plans for businesses with varying credit profiles.
• Expansion becomes easy

Med Spa Equipment Financing Can Go up to $500,000

 2- BUSINESS LOANS & LINE OF CREDIT

Business Loans – Line of Credit

Once you’re established yourself, you will not be able to grow with new products. At a pre-revenue, you might be able to get a term loan but what are you going to do with the money? So, line of credit is a substitute to have in case you need funding, but lenders don’t just approve anyone with line of credit. There are man caveats.

Business Loan Line of Credit Limit: $5,000 -$50,000 (line of credit don’t provide the higher credit limit.)

Business Term loans Limit: $5,000 – $500,000:

What’s the funds for because it’s not money that just sit there ready to grab, you have a have a purpose for the funds.

Microloans

Nonprofit organizations and online lenders offer microloans, which are small loans with shorter repayment terms and lower interest rates than traditional bank loans. These loans are ideal for small medical spas looking to purchase specific pieces of equipment or fund minor expansions.

Micro loans are between $500 to $25,000 – good for just starting out.

Benefits:

• Easier approval process compared to traditional loans.
• Suitable for businesses with limited credit history.
• Quick access to funds for immediate needs.
• Can use personal credit if just starting out

However, industry matters for Grants, freebies & subsidies. If you’re servicing a product that no one else, you might be able to speak to the city/county/state to work out some grant or non-profit org.

STARTUP FINANCING FOR MED SPA EQUIPMENT

Understanding whether your business is pre-revenue or revenue-generating is crucial when evaluating funding options. This matters a lot and it’s a big factor in many more criteria to get approval. Startup can be segmented into two aspects for lender’s perspective.

• Pre-Revenue Businesses: These businesses are still in the development phase, working on building their offerings and testing market viability. Funding options like grants, crowdfunding, or microloans are often the best choices.
• Revenue-Generating Businesses: These are businesses with proven market viability, generating consistent income. They are more attractive to lenders and investors, making options like leasing, invoice financing, or angel investment more accessible.

Startups is defined broadly and is subject to interpretation. UBER still is considered startup. Some banks will consider you a startup even after 3 years in business.

Having the right funding partner matters when to and how to get the right funding. Liberty Capital, after 20 years serving small business owners, they’ve seen many lenders come and go, but their commitment to service is unwavering for a self-funded small business lender and equipment broker. Work with a trusted funding source for all your capital needs.

Liberty Capital is ready to help! Call 888-511-6223 to get pre-approved today! OR, apply online for expedited approval.