Medical Spa Equipment Financing

by | Feb 22, 2022 | Med Spa | 0 comments

As self-care becomes more and more critical, spas, particularly medical spas, are gaining popularity. The spa industry is currently worth over $17 billion. Those who own and operate medical spas understand that a great deal of money is to be made in this sector. The key is to ensure that your spa stays up-to-date and is thus competitive. Meaning you can’t afford to be without the latest in healthcare equipment, skincare technology, and other medical spa equipment necessary to attract your target clientele. So how do you do this? How do you stay current and ensure that your equipment is not outdated and that you can offer the latest spa treatments to your clients? This article looks at medical spa equipment financing, the steps you must take to apply for funding of this nature, and how you can better position yourself to ensure that you get approved.

What is Equipment Financing?

Let’s start with the basics. Generally speaking, when people think of equipment financing, they think of large machinery or construction equipment. This is not the case. Not by a long shot. Any type of equipment that a business might require is eligible for equipment financing. From IT and tech equipment to medical spa equipment, lenders are ready and willing to provide you with the funds necessary to purchase new equipment or update your existing equipment.

There are typically two ways available to get the equipment you need for your business. You can get an equipment loan. In this case, the equipment you are purchasing serves as the security on loan. Meaning you usually do not have to put down collateral for an equipment loan. If for whatever reason, your company defaults, the lender would then take back the equipment and sell it to recoup their losses.

You could also lease the equipment that you need. You are paying to rent the equipment over the long term with leasing equipment. Upon completing that lease, you can either buy the equipment outright (generally for a low if not minimal price) or give the equipment back. Usually, when leasing equipment, there are no upfront costs involved.

Steps to Take to Finance Your Medical Spa Equipment

Step 1: Find a lender that meets your needs as a small business. Alternative and online lenders are excellent options for medical spa equipment financing. This is because they get you the money you need quickly, not to mention their criteria are less stringent than a typical bank’s. You want to do some research and identify a lender with everything you need.

Step 2: Have all of your documentation ready to go. You will fill out an online application with the lender of your choosing. At that point, they will ask you for several documents to support your application packet. This will include financial statements such as cash flow statements and balance sheets, tax returns, business leases, and articles of incorporation, among other paperwork they might request. The more organized you are, the faster the process will go.

Step3: Also, be sure to have the information on the equipment you intend to purchase. With equipment financing, the lender is interested in the specs on the equipment. Whatever information you can provide them with or get from the seller of the equipment will be necessary to move forward with the loan process.

Step 4: Purchase your equipment. The wait time is minimal. And you usually receive the funds in your account within two business days, thus enabling you to purchase the equipment you need for your medical spa almost immediately. And that is all there is to it when working with an alternative or online lender.

How Can You Improve Your Approval Odds?

Again, when working with an online lender versus a traditional bank, you must meet the benchmarks that tend to be less stringent. However, you can do things to help improve your chances of getting an equipment loan. For example, check your credit report, look for inconsistencies or errors and rectify those. Also, start paying down some of your debts now. The fewer debts you have, the better your odds of approval.

Owning a medical spa can be a very lucrative endeavor. But again, the key is to offer the latest technologies and the most current treatments. You have to be able to keep up with your competition.

First Union Lending is Here for You

If your medical spa needs new equipment, we want to help. We offer a variety of fast and flexible equipment financing options. We provide short-term loans, merchant cash advances, and equipment financing. And all of our funding solutions are custom-tailored for each client. No one size fits all approach with us. Call today, and let’s get started together.