Medical Spa Business Loans

Medical Spa Business Loans

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Medical spas can be the perfect escape for clients who need some “R & R .” Medical spas utilize non-surgical medical services within a spa environment. They provide health and wellness services with enough pampering to have them coming back in for more.

The spa industry is a multi-billion dollar business with copious customers willing to indulge in memberships, treatments, and exclusive packages to break from their everyday lives. According to Statista, the spa services market with services such as massage, beauty and grooming, and physical fitness are expected to grow over $133 billion by 2027. As a business owner, this sounds like the opportunity to get ahead of the competition.

If you're one of the many medical spa centers, your services provide clients with the treatments they need to get on with everyday challenges and improve the overall quality of their lives. But, like any small business, running a medical spa comes with a set of challenges. It takes more than one good physician to keep a location running successfully. One of the more significant challenges associated with running or expanding a medical spa is the substantial financial expense. Many medical spa owners turn to outside funding sources to finance their typical day cost in medical spa business loans.

Traditional and non-traditional lenders view medical spas as investments worth funding. Businesses within the medical or health and wellness field tend to have a stable income and strong earning potential, thus making acquiring funds easier.

First Union Lending has provided working capital to many medical spas run by passionate healthcare workers who enjoy treating their patients daily. We are ready to help small and growing medical spas attain the necessary funds when needed.

What are Medical Spa Business Loans?

Medical spa business loans are industry-specific loans offered by traditional and non-traditional lenders to support a range of business needs. It provides funds to small and growing centers to manage capital flow, purchase necessary equipment, run payroll, and more.

Various medical spas offer a wide range of services to their clients. Some medical spas focus on a particular treatment above others to market themselves to their target audience. Medical spas that provide these services can improve their business endeavors through a loan:

  • CoolSculpting
  • Laser Hair Removal
  • Botox/ Filler Injections
  • Microneedling/Skin Tightening
  • Massages
  • And Other Medical Spa-Related Services

Many successful medical spas require a steady flow of clients and working capital to maintain operations. The best solution for those who need quick funding isn't to gain access to necessary funds through a loan. First Union Lending is here to help! Many loan options are available to help provide the working capital needed to help your business thrive.

Types of Medical Spa Business Loans and Financing Options

Once you, the business owner, have determined the requirement for additional funds, consider the factors most important in acquiring a loan. Business owners should apply for loans that offer low-interest rates, down payments, and collateral requirements.

Here are the more widely used loans to help medical spas grow.

  • SBA Loans: Partly guaranteed by the U.S. Small Business Administration, traditional and non-traditional lenders offer SBA loans. The program provides highly flexible rates and terms ideal for small businesses. Well-established companies looking to expand their initiatives can use several SBA loans.

    Businesses must meet the following requirements to be eligible:

    • Operate for profit
    • Be considered a small business, as defined by the SBA
    • Be engaged in, propose to do business in, the United States or its possessions
    • Used alternative financial resources, including personal assets, before seeking financial assistance
    • Not be delinquent on any existing debt obligations to the U.S. Government

    These SBA loans, in particular, can benefit small but growing businesses within the chiropractic field.

    SBA 7(a) Loan: 7(a) loans are the most common within the SBA family. With access to up to $5 million in working capital for 25 years, these types are typically adequate for most industries. Interest rates are between 7-8% depending on trade and the nature of your business. Most businesses opt-in for an SBA loan fall under this 7(a) category.

    SBA 504/CDC Loan: 504 loans are particular; it provides long-term, fixed-rate financing through Certified Development Companies (CDCs), SBA's community-based partners who regulate and promote economic development within their communities. If your business needs to purchase commercial real estate or perhaps a large piece of equipment, this may be the ideal loan program. The borrower may need to provide 20% of the total value, with the SBA kicking in 40% and the lender the rest. The cap on this type of loan is generally $5 million.

    Businesses must meet the following requirements to be considered eligible:

    • Have a tangible net worth of less than $15 million
    • Have an average net income of less than $5 million after federal income taxes for two years preceding your application
  • Business Lines of Credit: Banks, financial institutions, and other licensed lenders often extend credit to creditworthy customers to address fluctuating cash flow needs. It is effectively a source of funds that borrowers can readily tap into at their discretion. Borrowers use this financing option rather than taking a significant, long-term business loan. When borrowers open a business line of credit, they receive access to a state amount of funds to use as needed. A monthly statement reflecting the amount of credit used will also include any interest charges, and borrowers will only pay interest on the funds used.

    Most lenders will require the following basic information during the application process:

    • Copy of Business License
    • Tax Returns
    • Three months of Bank Statements
    • Standard financial documents like P&L, AR, AP, Cash Flow, etc.
  • Equipment Financing: Equipment loans are funding options that allow for business-related equipment purchases. Businesses will often need to purchase, replace, repair, or upgrade various equipment to serve their customers better. Companies who opt-in for this loan can buy a massage table, body contouring equipment, facial skin scrubbers, hot towel cabinets, laser equipment, and more.
  • Long-Term Business Loans: This type of term business loan provides borrowers with a lump sum of funds, with a repayment plan of regular intervals of 5 to 25 years. This financing option is best for businesses that need significant capital at a lower interest rate. A long-term business loan has a fixed floating interest rate and monthly or bi-monthly payments deducted from a business bank account.
  • Short-Term Business Loans: Short-term loans can be highly beneficial during a growth period, fluctuating cash flow times, or a need for seasonal purchasing. Small or medium-sized businesses can use these loans to enhance their activities. It provides a lump sum upfront to a borrower and has a repayment period ranging from three months to three years.

    The application process requires proof of ownership of your business, financial statements, tax information, P&L statements, and a copy of your driver's license. Lenders will check your business and personal credit as well. Short-term loans have almost no limitations on their uses, and borrowers can decide how to spend the funds once they receive them within 1-2 business days.

How does a Bridge Loan Work

How to Apply for Medical Spa Business Loans: Requirements and Getting Started

If your medical spa has come to the point where funds are needed to generate a greater profit return, acquiring a small business loan may be the best option.

First Union Lending is ready to help finance your business!

Submit your business information below to determine if you qualify for any available small business loans. Our Funding Specialists will analyze your qualifications and reach out to walk you through the required steps to receive funds.

See Your Loan Options

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While each of the available loans have varying qualifications, lenders will typically ask for the following general information:

  • Business Operations History
  • Business Revenue Statements
  • Personal & Business Credit Scores
  • Collateral if needed

Online lenders like First Union Lending provide various businesses across the United States with the funds needed to grow and generate revenue.

If you have any questions in regards to any medical industry-related business loans, feel free to give us a call: 863-825-5626

How does a Bridge Loan Work

Advantages of Physical Therapy Business Loans and Financing

Depending on the loan you qualify for, there are many benefits in partnering with a lender to gain funds for business initiatives. The funds from these financing options can solve various challenges while opening new doors for a growing medical spa.

Loans provided through First Union Lending help borrowers cover a range of expenses in their day-to-day operations. Medical spas are known for high-quality services and treatments, requiring a substantial income flow to cover. Funds from these loans allow borrowers to cover payroll, make payments on equipment, pay the lease, and more.

Medical spas require high-quality equipment to provide exceptional service to their clients. Most utilize a form of equipment financing to cover items such as treatment chairs, massage tables, microdermabrasion machines, wax, and more. Borrowers can also use the funds to purchase or upgrade any equipment if needed.

Medical spas that have grown in popularity can also utilize the funds to renovate or expand their current location. Acquiring a neighboring business to expand is very costly if paying out-of-pocket. With a business loan, borrowers can purchase real estate needed to enhance their business and bring in more paying customers.

Overall, medical spas can use these loans to help run their business smoothly. The funds can cover most expenses in their day-to-day operations unless told by the lender. The funds can be used to purchase or upgrade equipment and enhance your business strategy to attract new clients to your medical spa facility.

Utilizing out-of-pocket funds can be expensive and quickly burn a hole in your pocket. Rather than spend your working capital on tedious expenses, look to a lender to finance your initiatives.

Choose First Union Lending As Your Premier Lender

At First Union Lending, we have an unwavering belief that small and medium-sized businesses deserve the right to access the capital they need to succeed.

Our goal is to build long-term, lasting relationships by providing business owners with what they need when they need it. We pride ourselves on being educated, knowledgeable, and caring about conducting business. We have voluntarily acquired much of the same licensing traditional banks require to cement our fiduciary responsibility to our clients and work culture.

We are here to consult, help you save, and guide you and your business to success.

All states we service for Medical Spa Business Loans:

Alabama

Alaska

Arizona

Arkansas

California

Colorado

Connecticut

Delaware

Florida

Georgia

Hawaii

Idaho

Illinois

Indiana

Iowa

Kansas

Kentucky

Louisiana

Maine

Maryland

Massachusetts

Michigan

Minnesota

Mississippi

Missouri

Montana

Nebraska

Nevada

New Hampshire

New Jersey

New Mexico

New York

North Carolina

North Dakota

Ohio

Oklahoma

Oregon

Pennsylvania

Rhode Island

South Carolina

South Dakota

Tennessee

Texas

Utah

Vermont

Virginia

Washington

West Virginia

Wisconsin

Wyoming

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