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Blog / How to use a med spa loan cost template to plan your finances

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How to use a med spa loan cost template to plan your finances

Tanja Lepcheska
July 14, 2025
Reviewed by: Teodor Jurukovski

$800 for a treatment bed. $2,000 for a laser deposit. $12,000 to renovate the space.

And you haven’t even ordered towels yet🤯

That’s the reality of opening a med spa — the costs stack up fast. One minute, you’re picking paint swatches; the next, you’re knee-deep in loan paperwork, wondering how it got this real.

We get it. Planning your med spa finances can make you break out in a cold sweat, especially when the expenses hit before you even open your doors.

That’s why we created this blog (and added a med spa loan cost template), to help you:

✔️ Estimate your startup costs accurately

✔️ Plan smarter loan repayments

✔️ Avoid common money slip-ups

Want to jump straight to the med spa loan cost template? Grab it here!

Why med spa owners need a loan cost template

Jumping into a loan without a solid financial plan is like booking an expensive trip with zero budget. It’s fun until the credit card bill arrives.

For med spas, financial planning and a loan cost template are essential because they give a clear picture of:

  • The overall med spa costs 
  • The repayment ability of that med spa
  • The risks of borrowing too much or too little

Bottom line, med spa owners need a template like this to break down their costs, project repayments, and make smarter budgeting decisions.

The risks of poor financial planning

Many med spa entrepreneurs fall into common traps that can derail their business finances. Here’s what happens when they wing it:

⚠️Underestimating expenses: Thinking the startup and future costs will cost less than they actually do, leading to cash shortages.

⚠️Borrowing too little or too much: Either struggling with credit cards to cover payroll, or being stuck with repayments that bleed profits dry.

⚠️Ignoring repayment terms: Overlooking how the loan length and interest rates affect monthly cash flow.

⚠️Forgetting about the off-season: Summer may be packed, but January? Maybe not so much, causing payment crunches.

⚠️Skipping emergency fund: Unexpected equipment, market shift, or staff quitting can sink a business if there’s no financial cushion.

The U.S. Chamber of Commerce highlights that one of the main reasons small businesses often fail is cash flow issues arising from a lack of funding and poor budgeting.

All of these risks boil down to poor planning. Without a clear budget and cash flow plan, it’s easy to run into trouble — fast. That’s why tools like a loan cost template aren’t nice-to-have, they’re essential.

How a loan cost template helps prevent these issues

A med spa loan template helps owners by breaking their finances into manageable pieces and takes the guesswork out of borrowing while helping you:

🎯Accurately estimate loan amounts: It can detail startup, operational, and repayment costs

🎯Strengthen your loan application: Lenders expect to see a well-structured loan plan, and having a loan cost template makes the application appear stronger

🎯Track your financial condition: It can be your ‘source-of-truth’ for managing budgets and adjusting forecasts

It gives med spas a real-world estimate of the budget they need to launch and operate their spas, laying the groundwork for better financial modeling and long-term planning.

Also, if you’re working with a Management Service Organization (MSO) (a company that takes care of the business and financial stuff), this kind of financial planning makes money conversations way smoother.

So, what are the key elements a good med spa loan cost template should have?

Key elements of a med spa loan cost template - blog image

Image illustration: Pabau

A solid med spa loan cost template should cover everything from setup to ongoing expenses, giving lenders a clear view of how funds will be used, and include a profit and loss forecast to show when you expect to become profitable.

What should be included in a med spa loan cost template?

The only way a med spa loan cost template works is by plugging in all the key expenses.

This section walks you through each of these next, ensuring no surprises.

Initial startup and setup costs

Med spas require significant upfront capital, whether you’re just starting your aesthetic business or scaling up to expand it. 

This is where you map out all the startup costs it takes to kick off your med spa. 

Image illustration: Pabau

Costs like company setup, lease deposits, renovations, inventory, and equipment are core upfront investments every med spa needs to plan for. Getting them right from the start helps you avoid delays, budget blowouts, and surprise expenses down the line.

Add these and other key expenses for opening a med spa, such as insurance and staffing, and you’ll avoid scrambling for cash mid-buildout.

Operating expenses and overload

These expenses are what will keep your business running month after month. They’ll kick in once you open and must be factored into your loan repayment plan.

Med spa operating expenses blog image

Image illustration: Pabau

Some of these costs, like rent and payroll, are easy to plan for. But don’t overlook the hidden ones, like software or credit card fees, which can quietly add up and eat into your profit if you’re not tracking them.

Blog image - survey stats about med spa challenges

💡One of the trickiest challenges for med spa business owners is unclear operational costs. A survey of small businesses found that more than half faced significant challenges with covering operating expenses (56%) and managing unpredictable cash flow (51%).

Loan repayment and interest considerations

Loan terms can make or break your financial comfort, which is why you need a loan cost template to track:

📢Your interest rate: Even a small difference, say 6% vs. 8%, can add thousands to your total repayment.

📢Your repayment terms: Short-term loans mean higher monthly payments but less interest overall; long-term loans have lower payments but cost more in interest.

For example, consider a $100,000 loan. 

A 5-year loan at 6% interest might require payments of around $1,933/month.

Stretching it to 10 years will drop payments to about $1,110/month but nearly double the total interest paid.

This shows that your cash flow statement needs to balance your loan repayments with your operational costs, and a loan template can help you track these details.

Revenue and profit projections

We’ve come to the fun part: estimating how much revenue your services could bring in each month (and how much of that turns into profit). 

Here are the key numbers to plug in:

Monthly loan payment

How much do you need to pay each month toward your loan.

✅Formula: Loan amount + interest, divided over the number of months

Expected monthly revenu

How much money you’ll bring in every month.

✅Formula: Projected revenue = number of bookings x average ticket size

Profit margin

How much of your revenue you keep as profit

✅Formula: (Revenue – Expenses) ÷ Revenue

Cash flow

How much cash is left after you pay your bills.

✅Formula: Money coming in – money coming out (if it’s a negative number, you may need to cut costs or adjust pricing)

Return on investment (ROI)

Whether your investment was worth it.

✅Formula: (Profit from the investment + cost of the investment) x 100

Break-even point

How much you need to earn to cover your costs — a cash flow forecast template can give you extra clarity on how your money moves in and out each month.

✅Formula: Total monthly costs+average profit per service

Best--case and worst-case scenarios

What will happen if your bookings dip or service takes off really well.

Tracking the right metrics and financial projections helps you stay realistic about timelines and financial goals.

How to use a med spa loan cost template effectively

Having a loan cost template is one thing. You need to use it actively and update it as your business evolves to use it effectively. 

Here’s how to break it down and make the most of it.

Step-by-step breakdown of filling out the template

You must turn raw numbers into a clear financial plan to maximize your med spa loan cost template. This means:

  • Estimate your total loan needs (startup and operating)
  • Adjust projections by running best and worst-case scenarios
  • Compare loan options to find loans that fit your cash flow

And remember, this is not just a one-time tool, but a living document that helps you stay on track as your business grows.

Med spa loan cost template to use

To simplify things, here’s a simple med spa loan cost template you can download and use monthly.

Med Spa Loan Cost

Template for download

Choosing the right med spa loan for your business

Every med spa has unique financial needs depending on its size, location, and growth plans. 

If you want a business loan, let’s explore the options that might help you pick the best fit.

Comparing med spa loan options

The right loan isn’t just about what your med spa needs today. It should also support your future goals. 

Let’s compare some med spa loan options to consider:

Small Business Administration Loans (SBA) are best for med spas with good credit histories.

👍 Pros ⚠️ Cons
Government-backed Tough qualification criteria
Lower interest rates Long approval process
Longer repayment terms /
Higher borrowing limits /

Vs. 

Traditional bank loans are best for med spas with strong revenue and impeccable financial records.

👍 Pros ⚠️ Cons
Stable Requires great credit
Competitive interest rate Lots of documentation

You also have the option to choose between a business line of credit and equipment financing. Let’s explore them below.

Business lines of credit: best if your med spa needs a loan credit for bulk inventory or surprise costs.

👍 Pros ⚠️ Cons
You only pay interest on what you use Interest rates can fluctuate
Have revolving access to funds May need collateral

Vs.

Equipment financing is best for med spas looking to buy new equipment.

👍 Pros ⚠️ Cons
The equipment is the collateral Interest rates can be higher
They’re often easy to qualify for /

Think beyond the interest rate — the right loan should fuel your treatments, tech, and team without holding back your growth.

What lenders look for in a med spa loan application

Before a lender says yes, they want to see that you’re serious — and that your business is in good shape. The better prepared you are, the better your odds of getting approved (and scoring better rates while you’re at it).

Some of the prominent factors that lenders want to see in your loan application are:

✅Good credit score and financial profile: Have you paid your bills on time, and do you have a track record of responsible borrowing?

✅Your revenue stability: How consistent is your monthly income? Is your business generating reliable cash flow?

✅Your debt-to-income ratio: How much debt are you already carrying compared to how much you earn?

Being prepared boosts approval odds and helps you negotiate better terms.

Tips for managing your med spa loan responsibility

Getting the loan is just the beginning. The real win is managing it wisely so it fuels your growth, not your stress. 

Here are some tips on staying in control of your loan long after the funds arrive in your account.

Tracking loan repayment and expenses

You didn’t open a med spa to become a part-time accountant, but if you’re not tracking how your loan money’s spending, that’s exactly what it can start to feel like.

What you need is an all-in-one practice management tool which has finance tracking and reporting features, like Pabau, for instance, to help you automate payment processing and make payment reconciliation and cash flow management easier. 

Among other things, Pabau also helps med spas: 

  • Track all payments with ease, including what’s outstanding, and how it compares to your revenue goals and projections
  • Get a clear picture of your income, invoices, overdue payments, and cash flow 
  • Generate reports to reconcile payments, spot discrepancies, and compare performance across time periods
  • Automate reminders and payment follow-ups to reduce the risk of late fees or missed repayments

These options allow you to stay on top of your finances, protecting your credit.

Adjusting your financial strategy over time

Your med spa business isn’t operating in a vacuum. This is because markets shift, client demand changes, and unexpected expenses increase. 

Whatever the shift, your financial strategy has to stay flexible along with it, and you can do that by:

  • Tracking med spa trends and adapting your service menu: If summer slows down or holidays get hectic, adjust your spending and loan payments to match
  • Watching for rising supplier costs: Renegotiate terms if your expenses jump
  • Revisiting your financial statements quarterly: Your balance sheet can reveal when it’s time to refinance or cut costs

An ongoing strategy like this will keep your med spa resilient and grow sustainably, no matter what.

Get started with Pabau’s med spa loan cost template📄

If you’ve made it this far, here’s your biggest takeaway: your loan shouldn’t be a gamble.

Our med spa loan cost template makes it easy to plan your loan, estimate your costs, and start budgeting with confidence. It will help you know exactly your expenses, where you stand financially, where the money is going, and how your repayment plan fits into your monthly cash flow. 

Also, with a tool like Pabau, you get all-in-one management software designed to provide everything a med spas need, from booking to appointment scheduling, streamlined payment processing, and maximizing ROI on their loans.

It’s time you took control of your med spa finances! Book a free demo with Pabau and see how it can help your business grow, from day one and beyond.