How cash flow works in a med spa or aesthetic practice
Most aesthetic revenue is cash-pay, and most of it runs through card processing. Patients pay at the time of service or buy a package in advance, and the money reaches your bank account as processor deposits after settlement, net of fees and any refunds or chargebacks. There is no claims cycle, but there is also no payer contract smoothing demand: revenue follows what patients choose to spend.
Seasonality and promotions
Demand for aesthetic treatments often moves with the calendar — holidays, event and wedding seasons, and the months before summer. Promotions and events can produce strong weeks, but they can also pull future purchases forward, leaving a quieter period afterwards.
Packages and memberships
Prepaid packages and memberships bring cash in early, which is helpful, but they also create an obligation to deliver treatments later. A month with strong package sales can look like spare cash when part of it is already committed to future appointments, product and provider time.
Devices and inventory
Lasers, body-contouring, radiofrequency and similar devices are significant purchases or leases, and some carry per-treatment consumables. Injectables and retail skincare are bought up front, sometimes in larger orders for better pricing.
Existing advances
It is not unusual for an aesthetic practice to arrive with one or more existing advances, sometimes taken at different times for different purchases. Each adds its own scheduled debits, and together they can absorb a large share of deposits. If that describes your practice, start with a practice review rather than a new request, and read our guide to med spa advance consolidation. PracticeFloat-funded advances are generally first position; a consolidation review may be referred to a partner funder, and lower payments or savings are not promised.
What PracticeFloat reviews
- Revenue history and bank-statement activity — the deposits reaching your business account and how steady they are.
- Time in operation.
- Existing advances and obligations already debiting the account.
- NSF and negative-balance history.
- Specialty and use of funds — what kind of aesthetic practice you run and what the funds will be used for. Processing statements may be requested alongside bank statements, and existing advances are reviewed closely.
- Owner guarantee — a personal guarantee from the owner is generally required.
The current published criteria are on the homepage under who qualifies; we keep them in one place so they stay accurate.
What you’ll need
You do not need everything to submit an inquiry. The practice review page lists what is typically requested:
- Recent business bank statements
- Existing funding contracts and payoff letters, if applicable
- Practice name and legal entity details
- Owner identification
Card-processing statements are often helpful too.
How the process works
- Inquiry. No hard credit pull to submit an initial inquiry. An inquiry is not an application approval.
- Document review and underwriting. Later underwriting steps may include credit review, depending on the product and funder.
- Written offer. If one is available, it shows the amount, total repayment and payment schedule.
- Signing. Review the agreement, ideally with your accountant or attorney, and sign only if it works for you.
- Funding. Timing depends on verification and on the funding party.
PracticeFloat aims to respond within one business day of a complete inquiry — a target for a first reply, not a promise of a decision or funding. Terms, timing and the funding party depend on whether the transaction is funded by PracticeFloat or a partner funder. If you already have advances, the practice review is the better starting point. See how the process works.
Cost and repayment
Advances are commonly priced with a factor rate: the total repayment is the advance amount times the factor rate, fixed in the agreement. Repayment is made through scheduled daily or weekly ACH debits; the schedule and total repayment amount are disclosed in the agreement before signing.
Costs are typically higher than SBA or bank loans, and because the balance is repaid quickly, the annualized cost is higher than "factor cost divided by years" suggests. For example, an illustrative factor rate of 1.25 repaid over 6 months works out to roughly 92% on an annualized basis (illustrative, not PracticeFloat's pricing). This is educational, not a regulatory APR disclosure.
Because scheduled debits do not pause during slow months, it is worth modeling repayment against your quietest season, not your average month.
Read how much practice funding costs, or model scenarios with the illustrative calculator (examples, not a quote).
When this may not be the right fit
- You already carry one or more advances. Adding another advance on top of existing ones can increase pressure on daily cash, because each one debits the account on its own schedule. A consolidation review or a plan to reduce existing obligations first may be the more responsible step.
- A device's payback depends on untested demand. If a new treatment has not yet proven itself with your patients, a lease or manufacturer financing program may spread the risk over a longer period than a short-term advance.
- The same seasonal low recurs every year. Adjusting staffing, pricing or promotion timing may help more than financing it each time.
- Prepaid revenue is doing the heavy lifting. If cash looks healthy mainly because of packages that still need to be delivered, factor that obligation in before taking on fixed repayments.
Frequently asked questions
I already have two advances. Should I request a new one?
Start with a practice review instead. Adding another advance on top of existing ones can increase pressure on cash flow. A review looks at your current obligations and what options may be available, which may include a referral to a partner funder for consolidation. Lower payments or savings are not promised.
Can I use an advance to buy a laser or body-contouring device?
It can be used for equipment, but compare it with a lease or manufacturer financing first. Those spread payments over a longer period, which can suit a device whose demand is still building.
How do slow seasons affect repayment?
Scheduled daily or weekly ACH debits follow the schedule in the agreement and do not change with seasonal demand. Model repayment against your slowest months before deciding on an amount.
Does prepaid package and membership revenue help?
Underwriting looks at the deposits that reach your business bank account, including package and membership sales. In your own planning, remember that prepaid treatments still need to be delivered, which uses product and provider time later.
Will a consolidation review lower my payments?
Not necessarily. Whether any consolidation option is available, and on what terms, depends on underwriting and on the funding party. Terms, timing and the funding party depend on whether the transaction is funded by PracticeFloat or a partner funder.