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Medical Spa Financing: Best Business Loan Options in 2023

Quality treatments and medical spa equipment can be pricey, particularly when you are just starting out. Furthermore, the ongoing expenses can be too much for some companies.

Best Spa Business Loans
Page Grossman
Written by:Page Grossman
Content Writer, Intentional Lifestyle Blogger
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If your dream is to open a medical spa business or to grow an existing one, then you know that financing is one of the most important things you need. Medical spa financing can help you purchase inventory, pay bills, upgrade your equipment, tackle an unexpected emergency, and pay employees.

While there are a number of ways to finance your spa business, a small business loan can give you the flexibility to spend the money how you need to and provide you with good repayment terms. Before you dive into the spa business loan application process, it’s important to know what to expect from individual lenders and what type of loan best fits your business needs. Below, you’ll find our best recommendations for med spa financing for your individual needs.

Top Picks for Best Medical Spa financing

Top Picks for Medical Spa Financing

If you’re looking for financing options for your med spa business, there are a number of factors that it’s important to consider to choose the right lender and loan product for your business’s unique needs.

In this review, our experts highlight the rates, fees and terms of each leder and explain what makes them a good option. We also share potential downsides of each lender, and provide a rating methodology you can use to select the best option for your needs.

 

Medical Spa Financing: Best Business Loans Overview

Each small business lender offers a variety of different pros and cons and the right one will depend on your funding needs and where you are in your journey to starting and operating your medical spa business.

Best Overall
Lendzi logo
4

Lendzi - Best for Businesses With High Revenue

4
Min. Annual Revenue
$180,000
Min. Time in Business
Not specified
Min. Credit Score
500
Key Features
  • Borrow up to $400,000
  • Competitive starting rates on most products
  • Bad credit accepted
  • See your options without hurting your credit
  • Flexible terms: 3 to 15 months
  • Excellent customer reviews on independent review sites
Pros & Cons
  • Easy online application
  • Bad credit accepted
  • Multiple loans and lenders to choose from
  • Excellent customer service
  • Income requirements may be high
  • Must be in business at least six months
Overview

Lendzi understands that you may have been denied funding elsewhere, and they work hard to get you the funding you need. Lendzi was founded in 2020 and is a direct lender and a lending marketplace. Because of this, the odds of you qualifying for a loan are greatly increased.

 

Main Features
Lendzi offers spa business owners seven different loan products, all with varying requirements. Working capital loans require the lowest credit score at just 500, and can be used for any spa business expense. If you need to purchase equipment, Lendzi has equipment financing that comes with lower rates than other types of funding. The credit requirement for equipment financing is 550 or higher and these loans go up to $2 million.

To qualify, Lendzi recommends six months of business history and $180,000 or more in annual revenue. The application takes a few minutes to fill out and will not impact your credit score. From there, a representative will reach out to discuss your business further and review your loan options. Lendzi currently has more than 2,000 5-star reviews on Google, TrustPilot, and Better Business Bureau.
gokapital review
4.1

GoKapital - Best for Multiple Loan Options

4.1
Min. Annual Revenue
$240,000
Min. Time in Business
12 months
Min. Credit Score
500
Key Features
  • Borrow up to $5 million
  • Loan Terms 2 to 10 years
  • Interest rates start at 25%
  • Wide range of loan offers
  • Simple application process
  • Instant pre-approval
Pros & Cons
  • Easy online application
  • Fast decision and lending times
  • Multiple loan options
  • Early payment discounts
  • Excellent customer service
  • High annual income requirements
  • High rates for those with poor credit
Overview

GoKapital caters to all businesses, including medspas, in all 50 states. Founded in 2013, they are our top pick for multiple loan options. Whether you need a business line of credit to cover business expenses during slow times or a commercial loan to purchase a new building, GoKapital can help get you the funds you need.

 

Main Features
GoKapital offers six different types of small business loans - business term loans, business lines of credit, merchant cash advances, equipment financing loans, SBA loans, and startup loans. These loans range from $5,000 to $5 million with terms ranging from three months up to 25 years. GoKapital also offers commercial property loans up to $50 million. To qualify for a small business loan from GoKapital, we recommend a credit score of at least 500, a minimum of one year in business, and a minimum annual revenue of $240,000. If your revenue isn’t quite that high, GoKapital’s startup loans require an annual revenue of just $50,000.

GoKapital is an excellent option for medical spa financing. They offer competitive rates and terms, large loan amounts, and excellent customer service you can contact anytime via phone, email, or chat. Applying takes just a few minutes and only a soft pull is done on your credit, meaning it’s virtually risk-free to see what type of funding GoKapital can provide for your small business.
bluevine
4

Bluevine - Best for Business Line of Credit

4
Min. Monthly Revenue
$10,000
Min. Time in Business
6 months
Min. Credit Score
600
Key Features
  • Funding up to $250,000
  • Interest rates as low as 4.8%
  • Loan Repayment 6-12 months terms
  • Quick and simple application
Pros & Cons
  • Once approved and funded, your loan funds are available on-demand for when you need them
  • There are no fees charged to maintain your line of credit
  • You must have a 600 or higher credit score, have been in business for six months, and have $10,000 in monthly revenue
Overview

Bluevine is an online lender that offers line of credit business loans and other business banking services, such as bill pay and business checking accounts.

If your med spa business suffers through a slow season each year and struggles with cash flow during the slow season, a revolving line of credit from Bluevine is a great product for your business. A revolving line of credit allows you to borrow funds, repay them, and then draw from those funds again. A revolving line of credit loan from Bluevine is a great option for your small business if you struggle with a slow season or cash flow problems and need a small amount of money to get you through.
nationalfunding
4.1

National Funding - Best For Working Capital Loans

4.1
Min. Annual Revenue
$250,000
Min. Time in Business
6 months
Min. Credit Score
600
Key Features
  • Borrow up to $500,000
  • Fast funding
  • Early payment discounts
  • Loan Repayment 2-5 years
  • Factor rate From 1.10
Pros & Cons
  • Easy application: You can apply for a working capital loan online, from the comfort of your own home or office, within minutes.
  • Easy application: You can apply for a working capital loan online, from the comfort of your own home or office, within minutes.
  • No risk to apply: You can prequalify for a National Funding online loan and check your offers without hurting your credit.
  • Personal guarantee required: While you won’t need collateral for a working capital loan, you will be asked to personally guarantee it.
  • Daily or weekly repayments: National Funding requires daily or weekly repayments on their working capital loans.
  • High annual revenue requirement: National Funding only lends to businesses who earn at least $250,000 per year so it can be difficult to qualify if you’re a startup or newer venture.
Overview

National Funding offers short term working capital loans, which can come in handy if your spa needs to cover day-to-day expenses like rent, payroll, or utilities. A working loan may also help you stay afloat during slow periods. Depending on your finances, you can get approved for up to $500,000. 

 

Main Features
Working capital business loans from National Funding range from $5,000 to $500,000 with repayment terms between four months and two years. The pay rate starts at 1.10. To take out a working capital loan, you’ll need a minimum credit score of 600, a business track record of at least six months, and $250,000 or more in annual revenue. 

If you’re an established spa with at least $250,000 in annual revenue and need some extra cash to pay for day-to-day expenses, National Funding should be on your radar. You can apply quickly online and even score a 7% discount for paying off your loan within 100 days.
biz2credit review
10
Text

providerName

10
Text
Min. Annual Revenue
$250,000
Min. Time in Business
Not specified
Min. Credit Score
Not specified
Key Features
  • Borrow up to $2 million
  • Loan Repayment 12-36 months terms
  • Variable APR depending on the applicant
  • Multiple loan types available
  • Funding in 72 hours
  • Soft credit pull
Pros & Cons
  • Can help you get a loan to buy retail space for your spa business
  • Have an online knowledge center where you can learn about your loan, business operation tips, and repayment of your loan
  • You must have annual revenue of at least $250,000 and a high credit score to be approved for a commercial real estate loan
  • It can take 30 days to receive approval for a commercial real estate loan
Overview

Biz2Creditis an online alternative lender that helps you find the best lender and loan product for your unique business. Biz2Credit offers working capital loans and term loans, but what they’re best at is commercial real estate loans.

When it comes to buying a commercial space for your medical spa business, there are very few lenders specializing in commercial real estate loans. Biz2Credit lets you submit one application and then review offers from numerous partner lenders. This lets you find the best loan product for your spa business.
Torro review
3.9

Torro - Best For Covering Spa Startup Costs

3.9
Min. Annual Revenue
Not specified
Min. Time in Business
Not specified
Min. Credit Score
Not specified
Key Features
  • Borrow up to $575,000
  • Loan Repayment 12 - 48 months terms
  • Hundreds of financing options
  • Use the loan for any purpose
  • Fast process
Pros & Cons
  • The application process takes only minutes
  • Torro works with a number of different funding partners so you have options to choose from
  • Lack of information on their website
  • Fluctuating loan terms
Overview

Torro is an online lender that offers term loans and startup capital loans to small businesses. They make the application process simple with an online application that’s mobile-friendly. Funding approval can take as little as an hour with funds available in as little as 48 hours.

If you’re looking to start your medical spa business, Torro has some great financing options that you can use for business development purposes. Torro works with startup businesses and can provide business development funding which can be used for turning your idea into a reality by getting your business license, patents, or trademarks. If you’re in the early stages of starting your spa business, a startup loan from Torro is a great option.
Fundbox review
4.1

Fundbox - Best For Medical Spa Equipment

4.1
Min. Annual Revenue
Not specified
Min. Time in Business
Not specified
Min. Credit Score
600
Key Features
  • Borrow up to $150,000
  • Loan repayment 6-12 months terms
  • Interest rate 4.66% minimum
  • No monthly fees or prepayment penalties
  • Same-day or next-day funding
  • Best for business lines of credit
Pros & Cons
  • Doesn’t require a high credit score to be approved, just 600 or above
  • Once approved, you can get funds in your bank account by the next business day
  • Repayment rates can be high
  • Repayment terms can be short
Overview

Fundboxis an AI-powered financial platform that offers term loans, business line of credit, and an education center for small business owners. Their goal is to help small business owners invest in their business at the right time. One of the most flexible and convenient loan products for a medical spa business is a line of credit. A business line of credit gives you a loan for up to a specific, set amount of money. But, you only repay what you use.

A business line of credit from Fundbox is a great loan product for small business owners because they don’t require a high credit score to be approved and you can use the funds for any purpose.

How Much Does it Cost to Open a Medical Spa Business?

Luxury amenities, expensive treatments, pricey equipment, qualified specialists, and good branding are all important because spa salons don't sell the treatment, they sell "the experience." Setting up and operating a business like this isn't cheap.

Here's a breakdown of the costs:

  • Space: The costs will vary depending on whether you choose to own, lease, or rent your physical spa space. In all cases, we're talking hundreds of thousands of dollars. Whether you're going for a luxury or authentic feel, you'll have to invest some real money in construction and renovation.
  • Furniture and equipment: You will need to create the right atmosphere and functionality for your customers and staff. Your med spa professionals need specialized equipment to do their job perfectly. In short, furniture and equipment is going to be your second biggest expense.
  • Treatment products: You will also need to spend money on skincare products, paper towels, Q-tips, and the like. Keeping your spa area clean and washing towels and gowns after each use is a top priority, however, such things will increase your utility bill.
  • Professional fees: A lawyer, an accountant, an interior designer, or an architect can help your business stand out from the competition, but their salaries aren't exactly cheap.
  • Permits and licenses: The authorities will require specific operational licenses or fees for various permits, depending on your location.
  • Online presence and appointment software: Digital presence is one of the essential components of any brand. You need a website that bears the same feeling as your amenities. Your website also needs to be functional so that your potential client can get an appointment easily. You will also need to take advantage of social media.
  • Operating expenses: Your ongoing operating expenses will vary according to the size of your salon. You will likely need separate capital for ongoing expenses before you start earning money.

All in all, a mid-range medical spa of 2,500 square feet will cost you about $500,000, but if you plan to own a high-end facility, the costs could go as high as $1 million, plus operating expenses.

 

How to Choose the Best Medical Spa Financing Option

If you’re looking for a loan for your medical spa business, there are a number of factors that it’s important to consider to choose the right lender and loan product for your business’s unique needs. Make sure to consider these factors before committing to a lender:

  • Application process: When looking at different lenders for your medical spa financing, you’ll want to find one that offers a simple, online application. This will make applying for the loan a simple process for you.
  • Variety of loan options: Depending on your financing needs, there may be a variety of different loan products that you can use. Choosing a lender that offers more than one loan product will allow you to pick the right loan and terms for your business.
  • Interest rates and fees: A loan can be expensive to repay. The best loan product for your business will have the longest repayment window and the lowest interest rate and fees you can qualify for.
  • Qualification process: Each lender has specific requirements for who can be approved for a loan. These requirements vary from lender to lender, so it’s important to know your credit score, how long you’ve been in business, and average monthly revenue prior to applying for a loan.
  • Customer support: When reviewing different lenders, be sure to see what type of customer support they offer to ensure you have someone to reach out to in case there is a problem with your loan.
  • Online user reviews: A great way to scope out if a lender is right for your spa business is by reading customer reviews to see what worked for them and what didn’t.

 

The Bottom Line

Opening and maintaining a spa business is no easy task. Starting a spa business will be costly during both the startup period and throughout the lifetime of the business. It may get even harder to manage and more costly as your clientele gows. Having a reliable loan lender can help you to manage the financial load. All our recommended lenders offer you fast and easy application processes, and most of these processes can be completed online. Now it’s up to you to select a suitable lender and get started.

About the Author

Page Grossman

Page Grossman

Freelance Copywriter, Intentional Lifestyle Blogger, Content Writer

Page is a freelance intentional lifestyle writer who has written financial content for Fundera, Zeni, Incfile, FamFi, and Zendesk.

More about me

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