An American Med Spa Association (AmSpa) study estimated that medical spa revenues are forecasted to grow at an annual rate of 8% from 2017 to 2022. Growing your Medspa practice doesn’t have to be complicated, and we know the best way to reel in more patients.
If you’re a Medspa offering more expensive services like cosmetic surgery, then consider other expenses your patient may pay like travel, room & board costs, aftercare, and follow-up appointments. Even frequent visits for laser hair removal or CoolSculpting can add up in their wallets.
Whether you’re looking to market your best services or specialties, you’re going to have to make your Medspa costs easily payable. In this blog, we’ll go over possible payment options you can provide your loyal clientele with!
Medspa Financing Options
It takes a toll on Medspa patients when they’re denied a financial loan for a service they’ve longed for. Nowadays, there are a lot of ways to find loans. Getting a loan from a bank, online lender, or medical credit company provides patients with a ton of options. But which is the right one your Medspa should offer? Let’s review some of the most popular financing options for Medspas today.
Medical lending networks
Medical lending networks
GreenSky Patient Solutions
GreenSky is popularly known for its home improvement financing, but its Patient Solutions feature is exclusively for those looking for medical or Medspa loans. GreenSky Patient Solutions is a program that connects patients to bank loans.
Essentially, patients are able to find a loan or select joint loan options suitable for them. This feature offers both a revolving account and installment loans. To qualify, a patient typically has a credit score above 700 and is subject to a hard credit pull.
GreenSky requires upfront fees for activation and unsecured deferred interest. If a patient can’t pay off their loan in the designated promotional period, they’ll pay more because of high-interest rates.
United Medical Credit
United Medical Credit (UMC) is similar to GreenSky Patient Solutions as it acts as a link between lenders, patients, and businesses. Some loans on UMC are more flexible in approving certain credit scores but usually have a higher interest rate upon approval.
A patient will fill out one application on UMC to get competitive offers from medical loan lenders. They’ll have the option to choose a loan best suited for them.
UMC uses a soft inquiry to determine the loan options, but the patient will have to undergo a hard inquiry when applying for their selected loan. UMC can’t guarantee if someone will qualify for a loan upon application as third-party lenders have different criteria to be qualified.
As a result, a patient with a lower credit score using UMC may qualify for better rates but still can get denied for the loan they need.
Medical credit cards
Care Credit
Care Credit has short-term and long-term promotional periods but high-interest rates overall. Like most credit cards, patients will have to pay deferred interest costs if the overall financed amount isn’t paid out in the promotional period.
Care Credit offers prequalification and can be used for a wide variety of procedures. It’s a good option for Medspas who offers services that require recurring appointments.
The cons of Care Credit for your Medspa patient are high-interest rates and application denials if they don’t have a stable credit score.
Alphaeon Credit Card – Plastic Surgery
Alphaeon is an option if your Medspa offers plastic surgery procedures. The card features a no prepayment penalty, promotional periods, and authorized users. Overall, it’s similar to Care Credit in the way that its functions.
Medspa patients can get pre-qualified, but as with any credit application, they are not guaranteed approval. This card is only used for dentistry, dermatologists, plastic surgeons, and ophthalmologists. So, it covers fewer industries in comparison to what’s covered by Care Credit.
Payment plans
In-house financing
In-house financing lets your business set the terms and be as flexible as possible with your Medspa patients. However, financing in-house may pose a risk to your business as you have to take on transaction and processing fees, handle collections, and more.
Denefits
Denefits is a complete payment options system that can handle all your accounts receivable, financing, and payment processing.
The Denefits system offers all your Medspa patients instant approval for financing with absolutely no credit checks. This means you can finance every patient without harming their credit score!
You can also join Denefits and utilize their in-house financing feature where you can set your own interest rates and the Denefits team will act as your billing department.
Final thoughts
With patient financing options, you’re bound to expand your patient base. It’s up to you which you decide, but even if you choose a traditional lender or creditor, consider an option that requires no credit check. Denefits allows you to welcome any potential MedSpa patient with open arms. With no credit checks and instant approvals, every Medspa patient that walks through the door can get the service they’ve been dreaming of! To learn more, request a callback today.
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