Guide

Your med spa wants to add a laser and you are not a physician. Who finances it?

Equipment lenders and the device makers' own finance arms will, once the spa has about six months of deposits and a medical director on paper. An established spa adding a device is usually an easy approval over three to seven years; a non-physician-owned spa is asked more questions about supervision than about credit. A line of credit for the ramp before the device is booked solid is the second product, and the one owners forget.

Why non-physician ownership comes up at all

Aesthetic lasers are medical devices, and in most states their use has to be supervised by a physician or a mid-level under a physician's direction. A lender financing a $100,000 device wants to know it will be used lawfully, because a spa that loses its medical director loses its ability to run the machine — and the machine is the lender's security. So the question is not really about your ownership. It is about your supervision structure.

Have it in writing before you apply: the medical director agreement, the protocols, the state's rules on who can fire the laser. A non-physician-owned spa with that folder in order is a normal file. One that cannot produce it is the file that gets declined, and the owner concludes the problem was the ownership.

An established spa adding a device: the easy case

A spa with six to twelve months of deposits, a booked injector, and a medical director is what an equipment lender wants to see. The device secures the loan, terms run three to seven years, and the manufacturer's finance arm often has the best rate because it wants the placement. Get the vendor's quote and the manufacturer's finance offer, then price the same device through an independent equipment lender, and take the better total.

Newer spas — under six months, or with a founder new to aesthetics — are underwritten on the plan, the location, the director and the owner's experience, and are asked for a larger down payment. A spa run by an experienced nurse injector with a strong personal file will be treated better than the calendar suggests.

What each underwriter weighs

A BANKA REVENUE-BASED FUNDERPERSONAL CREDIT SCOREheavysomeCOLLATERAL TO PLEDGEheavynot looked atTWO YEARS OF TAX RETURNSheavynot looked atTIME IN BUSINESSheavysomeMONTHLY BANK DEPOSITSsomeheavyDEPOSIT CONSISTENCYnot looked atheavyINDUSTRY AND STATEsomeheavy
The same business, read two different ways. A bank decision is built on credit, collateral and filed accounts; a revenue-based funder builds it on the money moving through your account. That is the whole reason a bank decline says very little about whether you can be funded.

The second product is for the months before the laser pays for itself

A new laser does not arrive booked. Training, marketing, the first consults, and the first packages sold take a quarter or two, and the equipment payment starts in month one. Owners who financed the device cleanly and still ran short did so because the ramp was funded out of the same account as payroll.

A business line of credit sized to three months of the new device's payment plus the launch marketing is the right shape for that gap. It is harder to qualify for than the equipment loan and should be applied for at the same time, while the statements are strong, not after the ramp has thinned them.

Before you sign the equipment agreement

Read the buyout. A lease with a fair-market-value buyout on a device you intend to keep for five years costs materially more than a loan or a dollar-buyout lease. Read the service terms — some manufacturer financing bundles a maintenance contract at a price that is negotiable separately. And confirm who owns the device if the spa changes medical directors: the answer should be you, not the director.

Sources

Related questions.

Can I finance a used or refurbished laser?
Yes, through most equipment lenders, usually on a shorter term. Manufacturer-refurbished units with a warranty finance more easily than a third-party resale, and the warranty matters more on a laser than on almost any other equipment.
Does my personal credit matter if the device secures the loan?
It decides the rate and the down payment rather than the answer. A score in the low 600s on a spa with clean deposits and a medical director is a normal approval with a down payment. A score in the 500s will be asked for more down.
What if the manufacturer's finance arm declines me?
Their box is narrower than the market's. An independent equipment lender reads the same device and the same statements with more flexibility on time in business and ownership structure. A manufacturer decline is not a market decline.

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