S2-Episode 1, Part 2- SBA Funding For Med Spa Startups

MedSpa Unlocked – Season 2, Episode 1 (Part 2)

MedSpa Funding, SBA Loans & How to Scale a Medical Spa the Right Way

In Part 2 of the Season 2 premiere of MedSpa Unlocked, Ashley James—CEO of DermAesthetic Consulting Group (DAC GROUP) and one of the most sought-after aesthetic practice consultants, sales trainers, and growth strategists in the industry—dives deep into MedSpa Funding, SBA Loans Medical Spa strategies, and how to build a profitable, scalable business from day one.

Joining her is special guest Marc Cornella of US Medical Funding, bringing over 30 years of experience in MedSpa Financing, Aesthetic Clinic Funding, and healthcare lending. Together, they break down exactly how to open a medspa, how to qualify for SBA loans, what banks are looking for, and why the right funding structure is critical for both Medical Spa Startup success and MedSpa Expansion.

If you’re searching for How to Open a MedSpa, MedSpa Business Strategy, Aesthetic Practice Growth, or how to Scale a MedSpa into a multi-million dollar business, this episode of the Millionaire MedSpa Podcast delivers real, actionable insight you can use immediately.

What You’ll Learn in This Episode:

• Why MedSpa Funding Fails
  The most common mistakes that prevent approvals—and how to avoid them. 
• How to Qualify for SBA Loans for Medical Spa Startups
  What lenders actually evaluate, including credit, experience, liquidity, and equity investment. 
• What Banks Are Really Looking For
  How to position your Medical Spa Startup or MedSpa Expansion for approval. 
• The Truth About MedSpa Financing & Aesthetic Clinic Funding
  Why the right capital strategy is the foundation of every successful medspa. 
• How to Structure Your MedSpa Business Strategy for Growth
  Aligning funding, staffing, and operations to support long-term Aesthetic Practice Growth. 
• The Real Timeline for Medical Spa Startup Funding
  What to expect from application to approval to closing. 
• How to Scale a MedSpa with the Right Financial Foundation
  Why proper funding allows you to market, hire, and grow without running out of cash. 

Key Takeaways:

• MedSpa Funding is the foundation of scaling a successful aesthetic practice
• SBA Loans Medical Spa strategies can accelerate your ability to launch and grow
• The right MedSpa Financing ensures stability, growth, and profitability
• A strong MedSpa Busine

DermAesthetic Consulting Group
DermAesthetic Consulting Group: Your partner from seed to success in building and scaling medspas

Medspa Business Builder
Business Builder: More than a CRM—scale your medspa & boost revenue up to 150%

Amspa
American Med Spa Association: Education, compliance, and resources for medspa success

Disclaimer: This post contains affiliate links. If you make a purchase, I may receive a commission at no extra cost to you.

Transcript

Welcome To MedSpa Unlocked

SPEAKER_00 0:00

Welcome to MedSpa Unlocked, the podcast for ambitious medical spa owners who want to build, scale, and dominate in the world of aesthetics. Each episode delivers the strategies, tools, and insider knowledge you need to create a thriving multi-million dollar practice. Hosted by Ashley James, known to many as AJ, former award-winning multi-practice aesthetic owner and operator, international speaker, sales and business mastery expert, and best-selling author of the MetSpot Growth Formula. AJ is also the founder and CEO of Durham Aesthetic Consulting Group and the visionary behind MedSpot Business Builders, a cutting edge performance and sales system that accelerates growth and drives real results for medical aesthetic practices. Today, she's one of the most highly sought-after aesthetic practice consultants in the nation, widely regarded as one of the industry's top authorities, and she knows exactly what it takes to rise above the noise, outpace the competition, and build a truly profitable, sustainable business. Join AJ and industry leaders as they unlock the secrets to success in aesthetics right here on MedSpa Unlocked. Now, let's get started.

SPEAKER_01 1:12

Hi everyone, welcome back to MedSpa Unlocked, the podcast where we break down what it really takes to launch, grow, and scale a profitable, compliant, and sustainable medical aesthetic practice. I'm your host, Ashley James, also known as AJ, and today's episode is one that every MedSpa owner, founder, or future owner needs to hear, especially if funding, capital strategy, and growth financing is on your mind. Today I am joined by Mark Cornella, managing director of US Medical Funding. Mark and his team have been delivering customized financial solutions exclusively for healthcare practitioners and owners for over 30 years. And they've seen everything. They've seen startup loans, expansions, equipment financing, acquisitions, and more. And guys, I've been working with Mark now for a couple months. Um, as you know, we do a lot of SBA funding here at Dermastetic Consulting Group. And the reason I brought him into this podcast today is because I really just love the strategy that he does. He's quick, he knows his stuff. If I don't have answers to questions, he does. And currently he's my go-to guy for SBA funding. So, with that being said, guys, welcome, Mark.

SPEAKER_02 2:22

Thank you, Ashley. I appreciate it. I appreciate the opportunity to answer any questions you have. Give your listeners a good little background about what to look for, what banks look for, and what they want to do as far as getting ready to apply for a loan, basically. Yeah. We've been around US, but just to give you a little background, U.S. medical funding has been around for 30 years plus now. We start in dental, veterinary, medical. Now we've branched out into pharmacy, med spas, uh, ambulatory surgery centers, uh, pain management clinics, all different types of healthcare. And I've really enjoyed working with you and I appreciate the opportunity. And uh please let me answer any questions anybody has or yourself.

SPEAKER_01 3:07

Yeah, absolutely. I mean, so this season is really focused on the startup blueprint, financial foundation for new proxy success. And one of the things that we've been talking about is, you know, where owners sometimes get upside down is they don't have the right financial plan and they don't have the right financial funding. Um, they kind of go into it thinking this is what it's gonna cost. And then they find out very quickly that they've run out of money. And so, you know, here at Dermacedic Consulting, we're always talking about let's know what those numbers are, let's have enough cushion, let's have the right amount of money to do this the right way so that you can really get through those critical phases. And what we hear a lot is a lot of people, for one, they think it's really difficult to get an SBA loan. Um, you and I know that that's not the case. But the reason that they find it difficult is because they don't have the right things in place. So I'd love to just hear from you. Talk to our listeners about, you know, if you're thinking about getting money from the SBA, you're thinking about getting funding, like let's walk through the checklist of what you absolutely have to have in order for a bank to take you seriously.

What Banks Require To Say Yes

SPEAKER_02 4:08

Absolutely, absolutely. First of all, let's talk about what banks look for, okay? What do they look for? They look for experience, some type of experience in the space. Don't have to, you don't have to uh actually own a med spa or have owned a med spa, but some type of experience in the space where they've worked at a clinic, they've worked at a spa, they know the they know kind of the ups and downs of what really happens on a daily basis, right? That's number one. Number two, very important. What's their personal credit history like, right? What's their personal credit history like? What's their credit score? Okay, how liquid are they? How much money do they have in the bank, right? We're not looking for millions, okay? But do they have 10 or 20 percent cash liquid in the bank compared to what the loan they're looking for? Right? We want we want them to have a cushion after the loan closes, after they get in there, after they open their doors. We don't want them to be stressed and completely wiped out of all their all their liquidity, correct? Um, and what's their what's their financial discipline? Have they handled have they handled their personal expenses, right? Are they driving a car that's too expensive and they really shouldn't be driving that car, they should be driving something else, right? What's their rent look like? How much are they spending on rent? What's their mortgage, right? All the basics. If you if the listeners could take some some ideas from this, what's common sense, right? Let's not be overextended. As long as they're not overextended, they have good common sense about how to take care of their expenses, their personal financing, um, bills, expenses, how much money do they bring in compared to what's going out, right? So a good credit score, good experience. And when I say good credit score, most lenders are looking for 700 and above, right? We'll we'll do a transaction that's 650, 675 with a good explanation. But as long as they're not, as long as they're not lower 600s or even 500s, that's gonna take that's gonna be a big challenge to get somebody approved. So decent credit, experience, some liquidity, and how do they take care of their expenses? Yeah, basically. That's what they're looking for in a nutshell.

SPEAKER_01 6:36

Yep, yep, I agree. And and you know, one of the things that we always do before we bring a client to you, Mark, you know, we we have these conversations with our clients. And, you know, when we talk about a good credit core score, we talk about experience. You know, we've had clients that don't have experience. We, you know, uh there, you know, private equity, there are a lot of people that are out there right now that are wanting to start med spas. And so, you know, how does that look if they don't have the experience? Well, hire the people that do. So you can be an owner that is doing this, but if you don't personally have the experience yourself, then you have to get heavy on the employees. So you got to hire that nurse practitioner that's got 10 years of experience. You got to hire that doctor or at least have that in the business plans the bank has something to fall back on so that they know that there is somebody securing the education and the operations of the business if you don't have any experience. Now, when you talk about, you know, having that liquid cash, you know, uh equity into the business, what you're talking about is let's say you're getting a million-dollar loan. Okay, maybe your build out's$500,000, you know, your operational cash is another$300 to get you to open is another$300, whatever it may be. What the bank, what Mark is saying is that they want to know that you can put some of that money towards loans. If it's a million-dollar loan, they're wanting to see you have availability to put a good, you know, anywhere from$15,000 to$20,000 in towards the startup. So maybe that's consulting fees, maybe that's you built out the website, maybe you've already paid for your architect. These are all things that can be applied towards that injection. Am I right, Mark?

SPEAKER_02 8:08

Absolutely, absolutely. Perfect segue, AJ. If they don't have direct experience, okay, they're gonna hire the right staff, and that's where you come in. That's uh seriously, seriously, that's this is where AJ comes in. Okay. We'd like working with AJ and her consulting firm because they are they have the background, they understand the business, and they're basically a partner in the startup for your for your for your business, basically. An excellent professional startup. This is why we're considering financing somebody's transactions with AJ, is because she's bringing a lot of experience to the table and basically directing you the right way down the road. What you have to do to get to the finish line. What do you have to do to get to that 12-month or 18th month break-even? Correct, AJ? That 18 month, that 12 or 18-month break-even point. What do you need to do to get there? And after you get there, hopefully you have some staff that has the experience to keep you rolling. And while you're in that business, you're learning. You're learning the ups and downs on a daily basis.

Why SBA Beats Conventional Loans

SPEAKER_01 9:18

Is that right? That's right. Well, I will tell you, most of our clients are breaking even before that 12-month mark. So we want people breaking between four to six. But so, you know, some of the listeners they're, you know, because there's such this stigma on SBA that, you know, we have people that think it's so hard. Talk to me about the benefits of SBA versus like a traditional loan, because I know it's very, very different.

SPEAKER_02 9:40

Very different, very different. If a if a if a borrower, respective borrower owner, wants to go to a conventional bank, a traditional bank, most banks don't understand how to do a startup business loan. That's where the SBA comes into play. The SBA is a is a partner with these banks, these lenders, and they actually help guarantee the loan. 75% of that loan is guaranteed by the government. What's that do? It makes the lender, the bank, more comfortable in lending for that business, that startup. So the risk, the risk is much, much less. And in other words, it look and it helps to predict the predictability of that owner being successful. Okay.

SPEAKER_01 10:26

I'm really, I'm really glad that you said that. I'm just going to interject really quick because we've had we've had clients that have said, you know, I talk to my bank and they don't do startups. So it's not that they don't do startups. What I'm hearing you say, Mark, is that they don't have that relationship with the SBA to feel confident to do uh that type of loan. So it doesn't mean that you're denied. It doesn't mean that you can't that the SBA won't do startups. It means that that specific bank won't do it.

SPEAKER_02 10:52

Am I right? Absolutely exactly. That specific bank doesn't have the experience in doing an X an SBA loan. Or they or they're not a preferred lender.

SPEAKER_01 11:03

I want to make sure anybody else. What does that mean? What does that mean? What does that mean?

SPEAKER_02 11:07

A preferred lender is allowed to underwrite the loan in-house and approve the loan without going to the SBA for approval. If you go to a local bank, a small local community bank, they might not be preferred. If they're not preferred, they have to go to the SBA for the approval and do a complete longer write up for that approval. It's a big, big difference. It's a big difference. Our banks are all preferred. We're all preferred SBA lenders. We've all had the experience with doing these types of loans. Startup pharmacies, startup veterinary practices, startup medical practices, startup ambulatory surgery centers, right? All in the healthcare space. And now startup Metsbox.

Closing Steps And Lease Warnings

SPEAKER_01 11:55

I love it. I love it. And yeah, we've we've worked with you quite a bit, and we have many more clients that are about to begin working with you. Some of the other, you know, I I if I if I'm taking all of my clients over the last several years and some of their questions and concerns when it comes to SBA, you know, I think it's really important to really kind of talk about what you want to use the SBA for and some of their specifications, like equipment financing, the operational cash, the build out. But what I get a lot of pushback on that a lot of clients don't understand is what is needed to close. So we have a new startup and the person is just getting into it. It's more than just getting approved. There's a process to the close. So let's talk about like all the things that have to happen before you can close, because that does play into the amount of like equity that you have to put into the business.

SPEAKER_02 12:53

Absolutely. Absolutely. So first off, so first off, we pre-screen the transaction for the borrower to get the approval. Number one, it's pre-screened. Number two, once the approval and the commitment letter is in place, we move to closing, correct? We move the closing. Now, if you have if you're helping a client that has that has build out involved, improvements, equipment, working capital for overhead operations, right? Number one, have has the equipment been selected yet? Number no, that's number one. Number two, do you have any equipment quotes and invoices? Number three, has the contractor been selected? How much is involved in the construction? Right? Have you had it? Do you have any permits yet? Have you gone to have you gone to your town to get the approvals to open up a Met spot at your location? Right? And one thing before I forget, I want to make sure everybody understands. It's great to start negotiating a lease, but please don't sign the lease until you're approved. I can't I can't explain enough and emphasize how many times borrowers come to us, right, after they sign the lease and then they can't get approved. I know, I know. So I'm out on everybody's excited about starting their business, right? Everybody's excited about starting a med spa. You can negotiate the lease, come to your lender first, make sure the length of the lease, right, matches the length of your loan. Otherwise, your lender's not gonna approve it. Right. The length of the lease has to match the length of the loan. That's what lenders look for, okay? And how much is that lease gonna cost? How much is that how much is your rent gonna cost? Is it in line with your projections? That's where you come into play, right? Helping the borrower with their projections. So there's a lot of moving parts that have to be played out before you get to the finish line.

SPEAKER_01 15:08

Before you yeah, I always say the SBA almost puts the cart before the horse because you get the approval, and then to close, you have to do all these things first. And so it's a it's a process, you know. You don't want to commit to a lease. I always tell my clients that the SBA typically is gonna do a 10-year loan, and so you're gonna need to have a 10-year lease, if not a five-year lease with a five-year renewal option. Right. But I'm the same way. Do not sign that lease until we have the approval because you are committing to liability before you know that you have approval. So it's kind of like it's it's a back and forth. Like once you start looking for the lease, obviously the landlord wants you to sign the lease, but then we're often waiting for the approval. And then once you have the approval, you sign the lease. And then the SBA is like, okay, where are we at? And we're like, whoa, whoa, whoa, whoa. We got to design the space. We've got to bid out the project. Once we decide which GC we're gonna go through, then we have to go and get our permits approved. And depending on what city you're in, you know, the permit process can be very lengthy. So one of the things that we do, Mark, is we this is one of the reasons why when we're negotiating leases for our clients, we're really trying to get as much free rent as possible. So, like in in cities like Texas, for example, it could be six months to eight months before I get permits approved. So I'm gonna really push for a year for free rent so that I have the time to do the permits, to build out the space and to get the clinic up and going. And so if you're listening, you know, getting the SBA loan or getting the funding is very, very important, but you have to understand it's not an application and then you're funded 30 days later. It could take four or five months to be funded before because you have to have all these things in place before the SBA will close. That's another reason why the SBA requires you to have a 20% cash injection because all these things like you have to pay for the architect, you have to pay for the mechanical engineering plans, you have to pay for their permits. So there's cash that has to be spent before you get closed.

SPEAKER_02 17:06

And so excellent points. The cash is going out, right? Cash is going out while you're getting ready and planning your opening, right? While you're planning to improve the space that you found, correct? And those are great points. You know, the the longer you could you could negotiate for free rent, right? And the longer I could build in interest-only payments into the loan, I want to mention for the folks out there listening, okay. We want to make sure you're successful. I meant 12 to 18 months before. I mentioned that because I do a lot of pharmacies, but yes, four to six months, four to six months, you're at the break-even, correct, AJ? About, yeah. So the folks, if if you're gonna be at the break-even point of four to six months, we're gonna make sure, we're gonna make sure we build in what we call an interest reserve. They're interest-only payments built into the loan where while you're while your construction is going on, while your improvements are being done, you're not making a payment until you open your doors, right? Because you put up you put enough money out already with all these different types of items that you're paying for. So we want to make sure that you don't have a payment until you open your doors, which may what actually helps the cash flow tremendously, right, AJ?

Sources And Uses Budget Explained

SPEAKER_01 18:26

Oh, I I 100% agree. And so, what I love about you guys is that you're very quick and efficient. And so, you know, I've I've worked with other banks where I mean they're still trying to collect data five months later and they're not organized. And I'm like, we've sent this, we've done this. And so, what I love about you guys is that I know what you need to get a loan approved. I know what my business plan needs to look like, I know what the financial plan needs to look like, I know the timeline that I can make educate my clients on expectations. Now, some of the things that you guys ask for is something called a source, a sources and uh uses statement. A lot of people don't know what that is. Can you kind of walk through what that document is?

SPEAKER_02 19:10

Basically, it's it's called the sources or sources and uses uh budget or statement, which actually itemize itemizes every every category that's actually gonna be paid out by the loan. Correct? So you'll have your improvements, you'll have your working capital, you're gonna have your inventory, your equipment, any type of supplies, marketing, right? Consulting for AJ. All those important items are gonna be spelled out on a sources and uses statement, or I we call it a budget, right? So everybody understands where the money is going to, where the lending is going to, and what is being what's being paid. Correct?

SPEAKER_01 19:57

Yeah, and that's important because it's basically the financial performa, which can be very, very many pages condensed into one sheet. And so what will happen, guys, is when we're in the funding process and you go to Mark and you say, Okay, like I'm gonna buy the Cyton laser, they're gonna look at that uses and source sort. I'm gonna get tongue-tied, uses and sources sheet and say, okay, where is this in the budget? And you'll say, Okay, it's in equipment and this, and they'll say, Okay, got it. If you don't have, let's say, let's say in it you have allocated$200,000 for equipment, but then you decide that you're gonna do extra equipment and it's now$275. The bank is gonna want to know that and they may or may not approve it.

SPEAKER_02 20:42

Correct.

SPEAKER_01 20:43

So you have to be very, very, yeah, you have to not only outline your budget correctly, but if the budget changes, they essentially have to approve it.

SPEAKER_02 20:53

That's a great point. Great point. So you wanna you wanna allocate, you wanna make sure everything is allocated up front so there's no surprises for the lender, which could slow down the whole process. If there's a piece of equipment that's added during the process, please tell the lender, please inform your officer that you're working with or the closing clerk, closing person, and they'll make sure it's added to the budget and the sources and uses. Absolutely. One other thing I want to I don't want to forget, I want to touch back on what you said before earlier. Very AJ, very important. You come to us, you enjoy working with us, working with me, because we take care of business, right? And I appreciate that. Thank you. It's so important to work with someone, a lender, a finance broker, whoever it is, who cares about what they do, who's passionate about what they do. We've been we've been doing this for 30 years, okay? I was trained by Xerox back in the day, but my point where I'm trying to make is and I did a blog on this actually a few months ago a lot of bank offers. And lenders, they get paid a base salary with no commission. So what's their what's their incentive to get your client from point A to point Z in 30 to 45 days to closing if they're not being compensated for what they do? So working with a bank and the right lender is one thing, but working with the right lender inside that inside that bank, the right bank officer who has your file is so important.

SPEAKER_01 22:40

Oh yeah. There's it it it is. I mean, that's why I work with you ongoing because you know me, I know the process, I know what you're gonna be looking for. And it it's almost like a relationship because if you get someone that doesn't know you, you know, or the underwriter is just kind of a paper pusher, they're asking questions that don't make any sense, you know.

SPEAKER_02 23:02

Absolutely.

Costly Mistakes And Cash Paper Trail

SPEAKER_01 23:02

Working with someone that's been through this multiple times, you know, knows what they're looking for and kind of get ahead of it before it becomes an issue. Before we jump back in, if you're building your practice from the ground up or refining and scaling what you've already started, my book, The Med Spa Growth Formula, was written specifically for you. It's a clear data-driven blueprint for planning, launching, and scaling a profitable, sustainable medical aesthetic practice. Inside, I distill more than 20 years of experience building and scaling successful practices into an actionable roadmap that covers how to avoid costly startup mistakes, how to create predictable revenue, and how to navigate operational challenges, all while outlining the 10 most critical elements of a practice you should master to build a business that lasts. The MedSpa Growth Formula is now available on Amazon in print and Kindle format, as well as through other major ebook retailers. I've included the link in the show notes so you can access it in the format that works best for you. Whether you're taking your first steps or preparing for your next phase of growth, my book, The MedSpa Growth Formula, is designed to help you move forward with clarity and confidence. All right, guys, let's get back to today's episode. You know, what are some common mistakes that you see um you know, you see making in the loan process?

SPEAKER_02 24:28

And some mistakes. Besides, well, the signing the lease is a big mistake.

SPEAKER_01 24:34

Yeah.

SPEAKER_02 24:34

That's number one. That's number one. Um, number two, number two, oh, here's a very good point. The bank is gonna look for where is the down payment coming from for the loan. Where is the where where are the funds that where's the capital down payment coming from? Important point now. Some folks out there have family, friends that are helping them invest in this med spot, right? Quite okay. That's perfectly okay, but it has to be documented where the funds are coming from. Is is Uncle is Uncle Bob okay lending lending um uh Susan uh fifty thousand dollars to open up her meds box. And I see this, we see this all the time. It has to, it's perfectly okay if it's coming from a gift from family or friends, but it has to be documented. If it if it cannot be documented where the sources of the capital is coming from, guess what? Guess what? That's a problem in the closing process. That that throws a big wrench into the closing process. So as long as let me touch on this, so this is a good segue. As long as the borrower and the owner and and the entrepreneur of this med spa has all their ducks organized in a row. Okay, this is where my capital is, right? These are my bank accounts. Here's my bank statements for the past three to four months. Because the SBA regulates these banks to prove where the capital is coming from, right? It's really not the bank and the lender, it's actually the government that regulates these lenders, right? On where the capital is coming from. So I've seen that happen a couple times where they can't support, they can't provide a supporting document where show where it shows where the capital is coming from. Right.

SPEAKER_01 26:41

So what do you think the easiest way is? I know that we've had clients where we call these investors angel investors and we just essentially create a spreadsheet. But where what's most important, I think, and correct me if I'm wrong, is when you get these angel investors or these family members to invest in your business, put it all in one bank account. Yeah. You can show the deposits, you can show the history because you guys are the SBA is gonna want bank statements and they're gonna ask for bank statements on a regular basis. So not just before they get you approved, but also before you close, they're gonna want to make sure that that money is in there or that you've been using the account to just kind of show that cash balance. Am I right?

SPEAKER_02 27:20

Very good point. Very, very good point. Um, just say, I would say the best, the best uh advice I could say is stay as organized as possible, right? Stay keep your keep your financing in place, keep your documents all in place, and stay as organized as possible. So when the bank does ask for the supporting documentation, you have it. Very simple.

When To Apply And How To Prep

SPEAKER_01 27:41

Yeah, yeah. What are um, so when you are looking at, so let me just kind of like backtrack here for a minute. So if you're if you're listening and you're thinking about opening a new practice, what do you think the right timeline is, Mark, for someone to start looking into um getting an SBA? So what I mean is I would say start off with a business plan, have a financial performa, have an idea of where you want to be, and have an idea of who your employees are gonna be. If it, if you don't have experience, who is gonna show, who are you gonna bring on that has the experience? Or if you are a nurse practitioner or a doctor that has the experience, how are you gonna position that to the bank? But when is a good time, you know, to start applying for excellent, excellent question.

SPEAKER_02 28:32

Excellent question. Obviously, obviously, they have to they have to be working with you, right? They have to be working with you seriously, seriously, on their business plan and their projections prior coming to us. Okay, right? They have to have a good idea what's their geographic location. They don't have to have their spot picked out exactly yet, right? Or their actual exact location, but what's the geographic area? What county are they looking in, right? What how many different towns are they looking in in that county? Have their projections and their business plan lined up with you, with your help, correct? Um, who they bring, who are they gonna bring on board? Who who are their who are their go-to key people, key personnel that they're gonna bring into the business, right? That's gonna help them be successful. So I would say, uh, or even I'm sure you help too with a demographic study. Oh yeah, a demographic study, a feasibility study. So once once they once you have checked all those boxes with AJ and the personnel that you're bringing in, the feasibility study, the demographic study, the projections, is this gonna be a winner in ABC County in Texas or in uh LA or Florida, where wherever, wherever. Have your ducks in a row through AJ's personnel uh ex expertise and then come to us when AJ and yourself feel like you have checked off all the boxes where we can now we can now take this to a lender and pitch our business plan. Absolutely.

SPEAKER_01 30:19

Yeah, and well, and let's talk about that timeline. So that's a couple, let's just say it's a couple months, let's maybe six weeks to get all that information. Once we bring it to you, honestly, I'll be honest with you, Mark, you're quick. I mean, you're giving me a decision within a day or two. The longest you've ever gotten back to me is like a week, but you're looking at this information, you're like, yep, this is a great loan. I'm gonna pitch this. And then once we do that, the approval with you guys, I mean, I'm gonna say it's about a month. And that's very, very quick. That's actually a long time for you guys, but it is to give some expectations from the time that that we've got the business plan ready to go and we're pitching it to you. I'm getting a verbal yes or no within 24 or 48 hours, and I'm getting an approval from an actual lender with a term sheet at the late, late or the longest period of time, probably a month, which is quick.

SPEAKER_02 31:13

Yeah, and you know what? That's a very good point. Thank you. Um, that was at our our first transaction that AJ and I uh have done together, took about it took about four weeks. However, yeah, however, it would have been a little quicker because we were we were working on a couple different things with a with construction and your client, and and that was that took a little longer. But uh, let me give you a good time uh timeline. By the time AJ, when AJ brings us a transaction, the first thing I do and my team does, we pre-screen it. Pre-screen it. We try to get back within 72 hours, literally. I will get back to AJ within maximum three to four days with a yay or a nay. Now that's not an approval, it's not a formal approval, right? But we've done this so long and we've done so many transactions in the healthcare space, we know what we could get done, and we know what it can't get done. Or if it has to be tweaked, we will tell AJ what has to be tweaked to make this work, this particular transaction. So I would say three to four days for pre-screen, AJ will get a green light or a red light on the transaction. We'll get a proposal in your hands, AJ, within within seven days.

SPEAKER_01 32:38

Right.

SPEAKER_02 32:38

Within seven business days, you'll the borrower will have a proposal in their hands with AJ copied in within seven business days after we've given a green light.

SPEAKER_01 32:51

Yeah. And to quick, and that's quick, guys. I mean, like I said, I work with a lot of, I've worked with a lot of SPA and I work with a lot of banks over the years. And one of the reasons, I mean, again, I love working with you, Mark, because you're so efficient, you're so quick. I mean, there have been times where I have waited four months for any type of like okay from a lender. And it's it's hard because it puts the project in limbo. You don't know what you can do. You may have found a great space, but you can't, again, you can't sign a lease until you have some type of a term sheet or some type of an approval, and you could lose the space, you know. So it's it's very important to work with a company that understands the processes, worked with med spas before because there are a lot of lenders that won't even touch med spas. And I I really don't understand that.

SPEAKER_02 33:37

Um, you know, every bank that's a good that's a good point, AJ. Every bank has their own appetite. Every lender has their own appetite. There's letters out there that won't touch a hotel. Seriously, we we do a lot of different transactions. We have two brands U.S. medical funding for healthcare, US professional funding for general business. But every lender, every bank has their own appetite, right? And that could stop you right there, right there in your streets. But that goes back to what I said earlier. Are you working with a lender or a bank that really cares about what they do? Are they and are they experienced? Are they experienced with are they experienced in this type of transaction? Do they have incentive to get it done? Do they have any incentive to get it done? Do they care? Are they passionate? Yeah, yeah. Obviously, you see that we care, we're passionate, and we love what we do. We really truly, we really truly love what we do. And um, no, we're looking, we're looking forward to working with you uh on some other transactions. Absolutely.

SPEAKER_01 34:41

Yeah. So what you know, when you're listening to this this episode today, to my listeners, you know, what I really want you to take away from this is, you know, getting getting funding for your business, for your startup, for your expansion, it has to be a critical step because, you know, you have to have the right amount of cash, especially if you're a new practice. There's nothing wrong with getting a loan that, you know, is a million dollars or is$800,000. It's better to have that cushion there to begin with and know that you have the right funds to market, to afford your staff, to do all the things that you need to be successful than it is to run out of money. Um, and I I always say this, you know, when you come to me and you think you have a budget in mind on what it's actually gonna cost to do your, you do your, you know, to launch your business and to get to that profitability, it's always lower than what it's actually gonna cost. And so, you know, having the right plan, having funding is very, very important, but also working with the right bank. If you are listening and you've been to a bank that says, nope, we own, you know, you have to be in business for two years before you can work with SBA. Listen to me now. This is that is a bank that doesn't do startups. That is a bank that doesn't have an appetite for what you're doing. It doesn't mean that you can't get it. It doesn't mean that you're not approved, it means you've talked to the wrong bank. I just had a client in Virginia that said the same thing. They told me I can't get approved. They told me they only I have to be in business for two years. I'm like, that's wrong information. Um, you also need to make sure that you're working with someone that has worked with med spas before and understands the structure because if, like you said, Mark, if they don't have an appetite, they could just say no. And that doesn't mean that you can't get it. It just means that bank doesn't work with med spas. So it's important to, you know, talk to multiple banks, but also talk, you know, with us and talk with Mark because we are the ones that are experienced in doing that.

SPEAKER_02 36:34

Absolutely. It's all about the right, it's all about the right person, the right bank, right? Do they have the experience and do they do they care?

What A Million Dollar Payment Looks Like

SPEAKER_01 36:43

Right, right. Well, and I want to touch on one thing too before we kind of end on today. You know, when I say a million-dollar loan, some of you might be listening, being like, oh my gosh, I I have sticker shock right now. What does that actually look like on a monthly basis, Mark? If I'm getting a million-dollar loan for my client, what does that payment look like?

SPEAKER_02 37:03

I'm gonna run it real quick for you.

SPEAKER_01 37:05

I know you are. I love it.

SPEAKER_02 37:07

Real quick. A million-dollar loan is about$12,000 a month on a 10-year term. Yeah. However, however, let me let me say this. If there's a situation where there's real estate involved, we haven't done one yet, but if the if the borrower has an opportunity to buy a building, to buy an office condo, a medical office condo, right? We can take that 10-year term and stretch it over 25 years.

SPEAKER_01 37:47

Now your payment drops down to$8,700 a month. So let me break that down for the listeners. Let me break that down because this is everything, guys. This is your build out, this is your operational cash, this is the the cushion of cash that you have during those very first months where you don't have revenue or you don't have a lot of revenue. This is your supplies, this is your opening order of Botox, all wrapped up into a loan. So your$12,000 payment to the SBA, let's break that down. That that's three injectable patients, guys. If your average patient is coming in for Botox or fillers and they're doing two syringes of filler, maybe three areas of Botox, that's that's really just that's just three patients, guys. If you're doing wellness, you're doing hormones, that's nothing. That's that's that's$12,000. That's nothing. Absolutely. So if you're listening, like I want you to start envisioning like getting a large loan doesn't mean you're going to immediately be in debt. It it one means that you're doing things smart. You're have making sure that you have enough cash flow, enough money to do this the right way. But guys, it's a small payment. And like you said, if you're buying the building, it's even smaller than that. So I hope that that if you're listening, it makes it feel a little bit more realistic because I think I think some people have like a bad stigma against loans. Like, I don't, I don't want to get an SBA loan because it's so much money, but it really isn't.

SPEAKER_02 39:17

AJ, great, great point, great point. Debt is not debt is not bad. The right debt is perfectly okay. And if you break it down to the simple, right? You break it down to the simple, how many clients, how many patients will it take to make that payment? Right. Three, four, right, four, not, not as many as you think. And you'll be you'll be in the black. Your customers will be in the black that much faster than they think when that business starts taking off.

SPEAKER_01 39:50

Oh yeah, oh yeah. I mean, our average, our average client is generating a minimum of$40,000 their first month out the gate. So, you know, it's that'll more that'll more than cover a million dollars.

SPEAKER_02 40:03

Right, right. It sounds like a lot when you say a million, but when you break it down on a monthly basis, just like a mortgage, it's just like a mortgage cost, right? A mortgage payment on a house. You buy a$2 million house. Oh my God, a two million dollar house. But guess what? That's only it's only$5,500 a month or whatever it is.

SPEAKER_01 40:20

Yeah.

SPEAKER_02 40:21

It's covered.

SPEAKER_01 40:22

Yeah, yeah. Gosh, this has been so great. I I want to be respectful of your time. I know you didn't have a full hour for me today, but you know, if you guys are listening, I really hope that this has shed some light on the SBA process. You know, again, this season is all about making sure that you're financially stable so that you are positioned for success. Um, you know, I I like you've heard from Mark today, we've answered questions on what you need to get funded, what the bank is going to require from you, what the timeline is, and just having realistic expectations about the approval process and what it takes from getting that term sheet to actually closing. Mark, it has been wonderful. You've you've shed so much light on this topic today. How do my clients get a hold of you if they're interested in doing this?

SPEAKER_02 41:05

So very simple. Our website is very easy to remember www.usmedicalfunding.com. W.usmedicalfunding.com. Go right to the website. We'll have a med, you'll see on top under professions, there'll be a web, uh, I'm sorry, a med spa section on top. Click on the med spot section. You can either give us a call, you can fill out a contact form, or fill out apply now. Very, very simple. And we will get back to you right away, even quicker than AJ.

SPEAKER_01 41:39

Yeah, I don't know about that. I love it. I love it. Well, everyone, again, thank you for tuning in to MedSpa Unlocked, where we help uh strategize and help you position your practice, whether it's new or you're expanding for long-term success. Mark, again, it's been a pleasure. Thank you so much. And if you liked what you heard today and you want to learn more, make sure that you subscribe and tune in next time. And so until then, keep practicing, keep growing, and we'll see you next time. Thank you, AJ. Thank you. Bye-bye. Bye.

SPEAKER_00 42:13

Thank you for listening to Med Spa Unlocked. True success in aesthetics is never accidental. It's the result of vision, precision, and disciplined execution. If today's episode resonated with you, we invite you to subscribe so you won't miss future conversations and to continue unlocking what's possible for your business, your brand, and your legacy. For more resources, education, and strategic support, visit us at dermastheticconsulting.com or connect with us on social media at Dermasthetic Consulting. And if you're ready to take the next step in building your aesthetics practice the right way, we'd love to help. Until next time, lead with intention, operate with excellence, and never stop evolving.