Financing Pre-Owned Aesthetic Equipment: Every Option Explained

You do not need $80,000 in cash to add a revenue-generating aesthetic device to your practice. Multiple financing paths exist for pre-owned equipment purchases — but the terms, requirements, and true costs vary dramatically between options. Most practices choose their financing based on the first offer they receive, not the best one available.

The Financing Landscape for Pre-Owned Equipment

Financing pre-owned equipment was historically harder than financing new equipment. Manufacturers subsidized new equipment loans and leases, while secondary market purchases had limited options. That has changed dramatically in recent years as the pre-owned market has matured and lenders have recognized the value in verified used devices.

Key Differences: New vs. Pre-Owned Financing

Important: These ranges represent the market in 2026. Individual terms depend on your credit profile, time in business, and the specific device being financed.

Option 1: Equipment Financing Loans

Equipment loans are the most common financing method for pre-owned aesthetic devices. The equipment itself serves as collateral, which typically means no additional assets are at risk.

How It Works

You borrow a set amount, the lender pays the seller, and you repay the loan over a fixed term with interest. At the end of the term, you own the equipment outright.

Typical Terms for Pre-Owned Equipment

True Cost Example

A $60,000 pre-owned laser financed at 10% over 48 months:

• Monthly payment: $1,522
• Total interest paid: $13,047
• Total cost: $73,047

If the device generates $4,000/month in treatment revenue, the loan pays for itself in 15 months — with 33 months of pure profit remaining on the term.

Best For

• Established practices with 2+ years of operating history
• Purchases over $25,000
• Practices that want to build equity and eventually own outright

Option 2: Equipment Leasing

Leasing pre-owned equipment is less common than leasing new, but it is available through specialized medical equipment lessors. There are two primary lease structures.

Fair Market Value (FMV) Lease

You pay lower monthly payments, but at the end of the lease, you must either purchase the equipment at fair market value, return it, or extend the lease.

$1 Buyout Lease (Capital Lease)

Higher monthly payments than FMV, but you own the equipment for $1 at the end of the term. This functions similarly to a loan but may offer tax advantages.

Lease vs. Loan Comparison

Best For

• FMV lease: Practices that want the lowest monthly payment and may want to upgrade equipment at lease end
• $1 buyout: Practices that want to own the device but prefer a lease structure for accounting purposes

Option 3: SBA Loans

The Small Business Administration offers loan programs that can be used for equipment purchases, often at favorable rates.

SBA 7(a) Loan

• Maximum amount: $5 million
• Interest rates: Prime + 2.25–4.75% (currently ~10–12%)
• Term: Up to 10 years for equipment
• Down payment: 10–20%

SBA 504 Loan

• Minimum amount: $125,000
• Interest rates: Fixed, typically below market
• Term: 10–20 years
• Down payment: 10%
• Requirement: Must create jobs or meet other public policy goals

SBA Pros and Cons

Best For

• Larger purchases ($100,000+)
• Practices with time to wait for approval
• Borrowers seeking the lowest possible interest rate

Option 4: Business Line of Credit

If you already have a business line of credit with available capacity, it can be used for equipment purchases without a separate application process.

When This Makes Sense

• Purchase under $25,000
• You have an existing line with favorable terms
• You want immediate access without a loan application
• You plan to pay off the balance within 12 months

When This Does NOT Make Sense

• Large purchases ($50,000+) that consume most of your available credit
• High credit line interest rates (15%+)
• You need the credit line available for operating expenses

Option 5: Seller Financing

Some sellers — particularly retiring practitioners or practices closing — offer direct financing. This can be the most flexible option when available.

Typical Seller Financing Terms

Why Sellers Offer Financing

Sellers benefit from financing because it:

• Speeds the sale (more buyers can qualify)
• Generates interest income
• Spreads their tax liability across multiple years

Risks of Seller Financing

• No institutional oversight of the transaction
• Dispute resolution is between buyer and seller directly
• Seller may not have clear title (verify independently)

Best For

• Buyers who cannot qualify for institutional financing
• Smaller purchases where formal loan costs are disproportionate
• Situations where the buyer and seller have an existing professional relationship

Option 6: Revenue-Based Financing

A newer option gaining traction in the medical aesthetics space. Rather than fixed monthly payments, you repay a percentage of your monthly revenue until the financing is repaid.

How It Works

• Borrow $50,000 for equipment
• Agree to repay $65,000 (30% premium) over 12–18 months
• Monthly payment adjusts based on your revenue: higher revenue months = higher payments, lower months = lower payments

Pros and Cons

Best For

• New practices (under 2 years) that cannot access traditional financing
• Practices with seasonal revenue fluctuations
• Urgent purchases where approval speed matters more than total cost

How to Choose the Right Financing

Before You Apply

• Know your credit score: Pull your personal and business credit reports before applying.
• Prepare financials: Lenders want 2–3 years of tax returns, P&L statements, and balance sheets.
• Get the device info ready: Make, model, year, serial number, and purchase price.
• Compare 3+ offers: Never accept the first financing offer you receive.

By optimizing the capital structure to match the anticipated clinical revenue of the specific device, aesthetic practices can definitively scale their hardware investments while preserving baseline operating cash flow.