The spa industry is experiencing robust growth, as highlighted by the 2025 ISPA U.S. Spa Industry Study. Key metrics reveal a 5.8% increase in overall revenue, reaching $22.5 billion in 2024. Spa visits rose by 3.1%, totaling 187 million, while the number of spa locations grew to 21,980, a 0.6% increase. Revenue per visit climbed 2.6% to $120.30, and industry employment expanded by 1.6%, with 376,200 professionals employed as of January 2025.
Starting or expanding a spa business is an exciting and ambitious endeavor. Whether you’re imagining tranquil spaces adorned with soothing tones or advanced, state-of-the-art equipment designed to pamper your clients, the road to building a successful spa has its challenges. One of the biggest hurdles is finding the right financial resources to fund your vision. For many, this means applying for spa loans and exploring spa financing options. Understanding these choices in depth is key to laying a solid foundation for your future success.
Why You Might Need a Spa Loan
Running a spa requires more than creating a serene and luxurious environment. Behind the scenes, there are high costs associated with running such a business. From designing inviting interiors to purchasing specialized equipment like massage chairs, hydrotherapy tubs, or steam rooms, the expenses can quickly add up. Not to mention, maintaining a team of licensed professionals, marketing your services, and managing daily operations also require significant investment.
A loan for a spa helps spa owners cover these costs without draining their savings or personal resources. With the right loan, you can equip your business to offer unparalleled services, making it a sought-after destination for relaxation and rejuvenation. Whether you’re just starting or looking to expand an existing business, the right financing can provide the capital you need to achieve your goals.
What Is a Spa Loan, and How Does It Work?
A spa loan is a type of financing specifically designed for businesses in the wellness and spa industry. These loans cater to the unique needs of spa owners, allowing them to fund a range of expenses, including but not limited to:
- Buying or upgrading equipment, such as massage tables, aromatherapy devices, or advanced facial machines.
- Training or hiring skilled professionals, from massage therapists to estheticians.
- Renovating existing spaces to create soothing, customer-friendly atmospheres.
- Launching marketing campaigns to attract new clients and retain existing ones.
- Covering everyday operational costs, such as utilities, supplies, and inventory.
Spa loans often come with flexible terms, allowing you to repay the borrowed amount in manageable installments. By exploring different borrowing options, you can find a payment plan that aligns with your business’s revenue structure. This ensures that you can make repayments without putting undue stress on your budget.
Assessing Your Spa Funding Needs
Before applying for financing, it’s important to clearly understand how much capital your business needs. Begin by analyzing your current financial situation. Look at your operating costs, planned expenses, and potential income. Are you looking to add new treatments? Upgrade outdated equipment? Create a more immersive environment for your clients? Each of these factors will influence the amount of spa funding you need.
For example, suppose you’re planning to renovate your reception area and treatment rooms to better reflect your brand. After getting quotes from contractors, you may determine that you need $50,000 to bring your vision to life. On the other hand, a smaller project, like investing in new skincare products to boost retail sales, might require only $5,000. By defining your goals and breaking them into tangible numbers, you ensure that you borrow just the right amount.
Exploring Different Spa Financing Options
There are multiple ways to secure financing for your spa, each with its own benefits and considerations. The key is to align the financing option with your business’s specific requirements.
Term Loans
Term loans are one of the most popular choices for spa owners. With this option, you receive a lump sum upfront and agree to repay it over a specified period. Term loans are ideal for large projects, like remodeling your facility or purchasing costly equipment. They often offer a fixed interest rate and a set repayment term, giving you predictability in your monthly payments.
Lines of Credit
A line of credit offers flexibility, allowing you to borrow only what you need up to a predetermined limit. This option is perfect for covering operational expenses during slower months or handling unexpected emergencies. Since interest is charged only on the amount you use, this type of spa financing is often a cost-effective solution for short-term needs.
Equipment Financing
Many spa owners rely on their equipment to deliver high-quality services. Equipment financing is specifically designed for these types of purchases. If you’re looking to buy massage tables, saunas, or hydrotherapy pools, this option provides the funds while using the equipment itself as collateral. This type of loan for a spa can keep your borrowing costs low, as lenders are often willing to offer favorable rates due to the secured nature of the loan.
SBA Loans
For those seeking government-backed options, an SBA loan for a spa can be an excellent choice. These loans, offered through the Small Business Administration, provide competitive terms and lower interest rates. They are particularly useful for covering broader expenses, whether it’s improving working capital or purchasing commercial real estate. SBA loans are discussed in more detail below.
Merchant Cash Advances
For spas with seasonal fluctuations in income, merchant cash advances provide a flexible funding solution. With this option, repayment is tied directly to your daily credit card sales. This ensures repayment aligns with your business’s cash flow, making it an adaptable choice for businesses with varying revenue.
The Appeal of an SBA Spa Loan
An SBA spa loan is a compelling choice for several reasons. Backed by the Small Business Administration, these loans are specifically designed to support small businesses like yours. They provide longer repayment terms and lower interest rates, making them a cost-effective option for financing larger projects.
Two popular SBA loans for spa owners include the SBA 7(a) and SBA 504 loans. The SBA 7(a) loan offers flexibility, allowing you to allocate funds for a range of needs, including payroll, inventory, and equipment. If you’re thinking about expanding your spa or purchasing property, the SBA 504 loan is an excellent choice. An SBA 504 loan focuses on large fixed expenses like purchasing commercial real estate or large fixed assets and offers fixed interest rates and long repayment schedules.
Though SBA loans offer many advantages, they also require thorough preparation. Lenders typically expect a strong business plan, detailed financial records, and proof of your ability to repay the loan. While the application process may seem complex, the rewards of securing an SBA loan are well worth the effort.
Preparing for a Successful Application
Applying for a spa loan requires careful planning and organization. The more comprehensive your preparation, the higher your chances of approval. Start by ensuring your financial documents are in order, including tax returns, profit-and-loss statements, and credit scores. Lenders often use these documents to assess your creditworthiness and reliability as a borrower.
Additionally, take the time to write a clear and compelling business plan. This document should outline your spa’s mission, target market, growth strategy, and financial projections. A well-thought-out business plan not only gives lenders confidence in your ability to repay the loan but also demonstrates your commitment to long-term success.
Improving Your Eligibility for Spa Loans
If you’re concerned about whether you qualify for financing, there are steps you can take to strengthen your application. Most lenders look for:
- Stable revenue history to gauge your earning potential.
- A credit score of at least 700, although higher scores often result in better terms.
- 1–2 years of business experience to demonstrate a track record of success.
If you’re a new spa owner, showing industry experience or offering collateral can enhance your chances of approval. Focus on highlighting your expertise and creating a transparent financial picture.
Putting Your Funds to Work
Once you’ve secured a loan for a spa, it’s important to use the funds wisely. Stick closely to the priorities outlined in your business plan and monitor expenses carefully. Keep detailed records of how the loan is spent, as this will not only help you stay on track but also build trust with lenders should you seek additional financing in the future.
A Bright Outlook for Spa Owners
Applying for spa financing isn’t just about securing the funds you need; it’s about strategically investing in your business’s future. By taking the time to explore your options, prepare thoroughly, and make informed decisions, you position yourself for success. Whether you’re launching a new spa or elevating an existing one, the right spa funding can make all the difference. Turn your business into a haven for relaxation, beauty, and wellness. With the resources and support you need, your spa can become a thriving sanctuary for years to come.
The friendly financial experts at First Bank of the Lake offer SBA loans designed with the needs of our customers in mind. We financed more than $500 million in SBA loans over the past 12 months and are ranked as the 15th largest SBA lender in the United States. Since our founding in October 1985, we have offered outstanding customer service and the best financial options for our customers’ needs. Today, First Bank of the Lake offers loans for business enterprises across the United States. To learn more about our bank or to learn more about SBA loans, visit our website or check us out on Facebook or LinkedIn. Our friendly and knowledgeable staff members will be happy to discuss your loan options with you and to help you achieve the highest degree of success in your chosen industry. Please contact us at (888) 828-5689 to get your business loan questions answered today!
