Your Med Spa Financing Checklist
Opening a med spa is an exciting opportunity, but securing the right financing is important in order to help ensure your success. Whether you’re starting from scratch or buying an existing med spa, having a clear financing plan is essential. Use this comprehensive checklist to guide you through the process, including how SBA loans can support your goals.
Define Your Budget and Financial Needs
Before seeking financing, determine how much capital is required. Include startup costs like lease deposits, equipment purchases, licensing fees, staff salaries, and marketing expenses. If you’re purchasing an existing med spa, factor in the sale price and additional costs for improvements or rebranding.
Build a Strong Business Plan
Lenders, including those offering SBA loans, will be looking to see a solid business plan. Your plan should include:
- A detailed market analysis
- Projected revenue and expenses
- A marketing strategy
- Goals for growth
- Highlight how you intend to repay the loan and your vision for building a profitable med spa.
Evaluate Financing Options
Explore various financing sources. SBA loans, such as the SBA 7(a) loan, are particularly advantageous for med spa financing due to their lower down payments, competitive interest rates, and more flexible repayment terms. They are ideal for purchasing real estate, buying equipment, or even covering working capital needs.
Organize Financial Documentation
Prepare key documents that lenders will require, such as:
- Tax returns (personal and business, if applicable)
- Financial statements
- A list of assets and liabilities
- Proof of collateral, like equipment or property
For SBA loans, you may also need to provide a personal financial statement and a debt schedule.