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Every small business has to maintain inventory of some kind. Your medical spa has two types of inventory. There are the professional supplies you use to provide services to patients. You also stock retail products that you sell to your clientele. Your medspa cannot function smoothly – or profitably – without a healthy inventory supply. Many medical professionals don’t realize small business loans can help with this.

Inventory financing is really quite common. So let’s talk about how you can get an inventory business loan for the aesthetic side of your medical practice.


  • You’re planning a thank-you event for your most loyal customers. Complete with gifts. You’ll need those gifts before the event date.
  • Your “party perfect” holiday promotion will generate an uptick in skin rejuvenation procedures. You need extra supplies for those treatments and follow-up products.
  • A recent TV segment featured one of the latest anti-aging procedures, and new patients are calling. You need to boost inventory right away to accommodate them.
  • Sales are typically slower during summer vacation. But this is when you need to stock up for your annual Moms’ Back-to-School Refresher.
  • You’re adding a new procedure. You’ll need a complete inventory of professional and/or retail products associated with it.
  • You’re building a second medspa location. You’ll need everything — all-new inventory — before you can open the doors.

So you need to order inventory to regularly replenish supplies. And to support planned promotions. But you might be caught off-guard by a sudden upsurge in business. The bottom line is that sometimes you don’t have the cash on hand to cover your inventory order. Especially if it’s large. Or unplanned.

Few small businesses enjoy the luxury of predictable, consistent cash flow. That’s why inventory financing is so valuable. These small business loans fill in the gaps. You can be confident you’ll have the supplies you need, when you need them.


There are several ways you can finance inventory purchases.

Bank loans are not an option for your medspa’s inventory funding needs. Banks don’t like this type of loan, because they’ll have to deal with your collateral if you don’t pay. That’s a headache. Besides, banks prefer to loan very large sums of money – far more than you’re likely to need.

What banks do love to give medical practices is a business line of credit. You can use this whenever you need to buy inventory, up to your credit limit. As you repay, more credit becomes available. And the faster you pay, the less you pay in interest.

Talk to your vendors about payment terms, rather than paying the whole bill up front. They want to keep your business. So it’s in their best interest to help you out. Spreading the cost over 60 or 90 days can relieve pressure on your cash flow.

You can use merchant cash advance to finance medspa inventory. Medical spas typically do a large amount of credit card business. With a cash advance, you get the money you need right now. Then the lender takes a fixed percentage of your future card transactions until the loan is repaid. This fits your cash flow. If you have high sales one day, the payment is higher. When sales are slower, the payment is also lower.

You may also be able to get a short-term loan, using the inventory as collateral. In this case, you won’t be able to borrow 100% of your inventory cost. Lenders discount the amount, because your inventory represents a risk to them. They can take it if you don’t pay. But they won’t be able to easily sell it to recoup their money.


It is vital to have sufficient professional and retail inventory on hand. But it is wasteful to maintain an over-supply. Over-stocking inventory eats up space for storage you could use for revenue-generating purposes. And it hijacks your cash flow.

You need an effective inventory management plan. That allows you to replenish supplies in a timely manner, so you always have what you need on hand. But not too much. You can predict what you’ll need, and when, on a regular basis. You can plan ahead for those times when you need to beef up inventory. And you’ll be able to proactively detect and prevent theft.

Efficient inventory management also saves you money. By tracking sales, you can pinpoint top-sellers and weed out items that are just taking up space. Narrowing your inventory to only the best, most needed items conserves working capital and boosts profitability.

And there’s another important benefit. To qualify for some types of inventory loans, you’ll have to show you do have a formal inventory tracking system. So having a plan improves your business operations. And it improves your ability to get small business loans.

Day Spa Magazine notes that “we often overlook the importance of proper inventory management. Fortunately, chances are good that by instituting or tightening some of your inventory management procedures, you can positively—and immediately—improve your spa’s bottom line.” Day spas that aim to pamper may have a stronger retail component, but this advice applies equally to your medical spa.


Certain types of financing are ideal for inventory. But as your medspa grows, you’ll want different types of small business loans to get the working capital you need.

Working capital loans can enhance the overall health of your business by:

  • Filling in the gaps when cash is tight
  • Smoothing daily operations
  • Funding business expansion
  • Reducing debt
  • Speeding recovery from a bona fide disaster

Talk to us. At United Capital Source, we work with medical practices and medspas across the country. We understand your special challenges, so we can match you with the medical practice loans that best fit your needs right now. And we can help you create a plan to use other types of small business loans effectively. You’ll always have what you need to grow the medspa side of your practice.

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