How Offering Patient Financing Can Boost Your MedSpa Revenue

Article Summary:

• The MedSpa business is in demand and owners can capitalize on this popularity.
• MedSpa patient financing can bring new customers and make payment for treatment options more affordable.
• Various companies provide financing solutions for MedSpa owners.

What used to be niche has now become normal. MedSpa services have exploded in popularity, and demand continues to increase. The number of medical spas increased from 8,899 in 2022 to 10,488 in 2023, according to the 2024Medical Spa State of the Industry Report from the American Med Spa Association (AmSpa). The report also notes that average annual revenue is on the rise.

If you’re a MedSpa owner, you can take advantage of this. But you could be leaving money on the table if you’re not offering MedSpa patient financing.

Why Upfront Costs Can Act as a Financial Barrier

MedSpa treatments give patients a high-touch experience that blends medical expertise with the luxury and ambiance of a spa. Because of the level of service and care, you can charge premium rates.

Aesthetic treatments like fillers, injectables like Botox, CoolSculpting, chemical peels, and laser treatments can cost anywhere from a few hundred dollars to several thousand dollars.

While that could be good for you as a business owner, it could present a financial barrier for some customers. Ongoing inflation has impacted many Americans’ budgets. That means they’re forced to make more decisions about needs versus wants.

The hefty upfront costs associated with these cosmetic procedures may not be feasible. But if you offer flexible payment options, you can attract more customers as they can spread out costs over several weeks, months, or years.

How MedSpa Patient Financing Helps With This Hurdle

MedSpa patient financing can alleviate financial pain points for your customers. When customers want specialized skincare or spa treatments, they want to feel good about the process from start to finish.

Providing easy and accessible financing options can help convert potential customers into existing buyers. It removes some of the financial barriers, which can mean more growth for your business.

How Flexible Financing Can Boost Growth

If you offer MedSpa patient financing, it’s not just good for your customers. It’s good for your business as well. Providing payment plans can boost growth in several ways:

• Encourage more bookings: Getting new patients in the door is the lifeblood of your business. When you offer MedSpa patient financing and show prospective customers that they can buy now and pay later, it can encourage more bookings and lead to less hesitation.
• Easier to upsell: A customer wants a wellness treatment, but you upsell a dermatological treatment as an add-on. MedSpa patient financing makes it easier for you to close the deal by removing some financial barriers.
• Make large transactions manageable: Increasing the average order value can significantly boost your revenue. That can help you with your cash flow and the cost of doing business. Giving customers MedSpa patient financing makes large transactions more manageable.
• More repeat customers: What’s better than a new customer? A repeat customer. Brand loyalty can go a long way and help your bottom line. While customer service, ambiance, and treatment experience are major factors, affordable financing options can make it easier to come in regularly.

What to Consider When Choosing a MedSpa Patient Financing Partner

The good news is that you don’t have to do this alone. MedSpa business owners can work with lending partners that simplify the process. These MedSpa patient financing partners typically pay the business upfront, while offering flexible payments to your valued clients.

However, it’s important to be aware that you’ll pay a merchant fee to receive the payment upfront, typically within a few days of the transaction.

Some companies that offer MedSpa patient financing include:

• Cherry
• PatientFi
• CareCredit

These companies take the hassle out of repayment. This frees up some billing time and lets you focus on providing great care. Plus, it makes it simpler for patients to pay for your services.

When evaluating a financing company, review the following:

• Merchant processing fees
• Timing of payments (typically 2 to 3 days)
• How quickly patients can apply (some offer instant approval, within 60 seconds or less)
• Repayment options for clients (and any hidden fees)
• Credit approval procedures (many do soft credit checks over hard credit checks)
• Payment plan options and terms
• Annual Percentage Rates
• Borrowing limits
• Interest-free and 0% APR options
• Eligibility requirements
• Approval rates

You can compare these points among various companies to find a lending partner that works best for your business needs.

Marketing MedSpa Patient Financing

MedSpa patient financing can boost your revenue and make treatments accessible to customers. But your financing option is only good if people actually use it. So, you need to make sure to market your offerings and let people know. Some ways to market MedSpa patient financing include:

• Website call-out: Let your clients know that financing is available at your MedSpa in a clear, visual way on your website.
• Signage: In your brochures, flyers, and billboards, entice customers to book with MedSpa patient financing. Mention any deals or promotions.
• Social media: The services you provide can make people look and feel good, without turning to plastic surgery. That makes it perfect for creating content on social media, like Instagram Reels and TikTok. Use before-and-after photos. Make a video of a procedure and how it works. Showing and not telling can let your results do the talking. Then provide a call-to-action and mention the possibility of MedSpa patient financing and any deals or promotions going on for new customers.
• Email: Directly email your customers and people on your email list about your current MedSpa patient financing options. Provide a list of treatment options and prices and illustrate how much more affordable it will be on a payment plan. When someone joins your email list, you can also send an automated email about payment plans, services, and testimonials to help with conversions.
• Pop-ups at checkout: If you have online bookings, you can have a pop-up at checkout with information about MedSpa patient financing.
• In-person consultations: Make sure your entire team is familiar with different packages and the MedSpa patient financing options that can help people afford them. So, when people come in, they’re well-versed in your offers and the financing solutions available.

Financing for MedSpa Owners

Giving your clients access to MedSpa patient financing can be a smart strategy to increase revenue and grow your business. But what if you are the one who needs financing options? Maybe you want to open a new location, invest in new equipment, and execute a big marketing campaign. Some business financing options for MedSpa owners include:

• Term loans
• SBA loans
• Business lines of credit
• Equipment loans

Final Thoughts

The growing interest in medical spas is a positive sign for business owners. If you have the right location, equipment, treatment options, and care, you can attract and serve customers. In this type of business, your results are part of your marketing. If you do things right, you can achieve high customer satisfaction and get more repeat bookings.

Giving your clients the option to use MedSpa patient financing can be a win-win for both you and them. It makes the services more accessible for customers while boosting your revenue. If you’re looking to grow your business and profits, this can be a smart option to look into.

FAQs About MedSpa Patient Financing

If you have a medical aesthetics-based business and have more questions about MedSpa patient financing, here are answers to frequently asked questions.

1. Which companies offer MedSpa patient financing?

Various companies offer MedSpa patient financing, including Cherry, PatientFI, and CareCredit. These companies provide MedSpa client financing options that make treatments more accessible. This can help business owners increase revenue and conversions.

2. How can MedSpa business owners Offer financing to clients?

MedSpa business owners can offer financing solutions to help clients afford treatment options. For example, in-house payment plans or working with a specific financing company like Cherry or PatientFi, which offers customers payment plans. Third-party financing options can be helpful but consider the merchant fees and how that will impact your profit.

3. Whatcredit score is needed for MedSpa patient financing?

Each company that offers MedSpa patient financing will have different credit score requirements. Some don’t have minimum credit score requirements. However, your credit score typically impacts your interest rate or annual percentage rate (APR).

4. Is there a hard credit check when applying for MedSpa patient financing?

In many cases, MedSpa patient financing only involves a soft credit check, which won’t harm your credit score. However, each option is different and can depend on the loan amount. You can ask if there is a hard credit check.

5. What financing options are available for MedSpa owners to grow their business?

Medical spa financing for businesses can include term loans, SBA loans, business lines of credit, and equipment loans. You can find these financing solutions at banks, credit unions, and online lenders. Look at the down payment and minimum credit requirements.

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