Financing Options Aesthetic Equipment: Cosmetic Equipment Term Loan & Aesthetic Equipment Leasing 2025

You found the right laser system at the right price. Now the question is how to pay for it. Cash is the simplest option—but tying up $50,000–$150,000 in a single asset drains working capital you need for marketing, staff, and rent. The right financing structure lets you acquire revenue-generating equipment while preserving cash flow.

This guide covers every financing option available for aesthetic equipment, including programs specifically designed for pre-owned systems. We compare rates, terms, tax implications, and real monthly payment examples so you can choose the option that fits your practice.

Financing Options at a Glance

| Option | Rates | Terms | Ownership | Best For | |--------|-------|-------|-----------|----------| | Equipment Loan | 6–12% APR | 3–7 years | Yes, from day one | Established practices buying to keep | | Capital Lease | 8–14% | 3–5 years | $1 buyout at end | Predictable payments + tax benefits | | Operating Lease | Varies | 2–4 years | Return or buy at FMV | Flexibility to upgrade | | SBA 7(a) Loan | Prime + 2–4% | Up to 10 years | Yes | New practices, best rates | | SBA 504 Loan | Below market | 10–20 years | Yes | Large equipment + real estate | | Vendor Financing | 0–15% | 1–5 years | Varies | Promotional rates from manufacturers | | Seller Financing | Negotiable | 1–3 years | After payoff | When traditional financing is unavailable |

Equipment Loans (The Standard Choice)

An equipment loan works like a car loan: you borrow a lump sum, make fixed monthly payments, and own the equipment from day one. The equipment itself serves as collateral.

Typical Terms

• APR: 6–12% (credit-dependent)
• Loan term: 3–7 years
• Down payment: 0–20% (varies by lender and credit)
• Approval time: 3–10 business days

Monthly Payment Examples

| Equipment Cost | 5-Year @ 8% | 5-Year @ 10% | 5-Year @ 12% | |---------------|-------------|--------------|--------------| | $40,000 | $811/mo | $850/mo | $890/mo | | $60,000 | $1,217/mo | $1,275/mo | $1,335/mo | | $80,000 | $1,622/mo | $1,700/mo | $1,781/mo | | $100,000 | $2,028/mo | $2,125/mo | $2,226/mo | | $150,000 | $3,042/mo | $3,187/mo | $3,339/mo |

Advantages

• Build equity immediately—the equipment is yours
• Full Section 179 deduction in year one
• Lower total cost than leasing over the same period
• No restrictions on modifications or resale

Disadvantages

• Higher monthly payments than operating leases
• Typically requires stronger credit (680+ FICO)
• Equipment depreciates, but loan balance remains fixed

Leasing Options

Capital Lease (Finance Lease)

A capital lease functions almost identically to a loan, except you technically do not own the equipment during the lease term. At the end, you purchase it for $1.

• Rates: 8–14%
• Terms: 3–5 years
• End of lease: $1 buyout (ownership)
• Tax treatment: Treated as a purchase for tax purposes — full Section 179 eligible

Operating Lease (True Lease)

An operating lease has lower monthly payments because you are not paying for full ownership. At the end of the term, you return the equipment, buy at fair market value, or extend the lease.

• Monthly payments: 20–30% lower than loans
• Terms: 2–4 years
• End of lease: Return, purchase at FMV, or extend
• Tax treatment: Payments are fully deductible as operating expenses
• Key limitation: No Section 179 deduction (you do not own the asset)

Lease vs. Loan: Decision Framework

| Factor | Choose Loan | Choose Capital Lease | Choose Operating Lease | |--------|------------|---------------------|----------------------| | Plan to keep long-term | ✅ | ✅ | ❌ | | Want lowest total cost | ✅ | ⚠️ | ❌ | | Want lowest monthly payment | ❌ | ❌ | ✅ | | Want Section 179 deduction | ✅ | ✅ | ❌ | | Want flexibility to upgrade | ❌ | ❌ | ✅ | | Credit score below 680 | ❌ | ⚠️ | ✅ |

SBA Loans: The Best Rates (If You Qualify)

SBA loans offer the lowest interest rates available for equipment financing, but they come with more paperwork and longer approval timelines.

SBA 7(a) Loan

• Rates: Prime + 2–4% (currently ~9–11%)
• Max amount: $5 million
• Terms: Up to 10 years for equipment
• Down payment: 10–20%
• Approval time: 30–90 days
• Requirements: 2+ years in business, 680+ credit score, strong revenue history

SBA 504 Loan

• Rates: Below market (tied to Treasury bonds)
• Max amount: $5.5 million
• Terms: 10–20 years
• Use case: Large equipment purchases combined with real estate
• Down payment: 10%

Who Should Apply

SBA loans make sense when you are financing $100,000+ and can wait 30–90 days for approval. The rate savings over the life of the loan can be substantial—a 3% rate difference on a $150,000 loan saves $23,000 over 5 years.

Section 179 Tax Deduction: The Hidden Savings

Section 179 is the most powerful tax tool available for equipment purchases, and many practice owners underutilize it.

How It Works

• Deduction limit (2025): $1,160,000
• Phase-out threshold: $2,890,000
• Eligibility: New AND pre-owned equipment qualifying as business property
• Applies to: Equipment loans and capital leases (NOT operating leases)

The Impact on Effective Cost

| Purchase Price | Tax Bracket | Section 179 Savings | Effective Cost | |---------------|-------------|-------------------|----------------| | $50,000 | 25% | $12,500 | $37,500 | | $80,000 | 32% | $25,600 | $54,400 | | $100,000 | 35% | $35,000 | $65,000 | | $150,000 | 37% | $55,500 | $94,500 |

When you combine pre-owned savings (40–60% off new) with Section 179 tax deductions (25–37% off purchase price), the effective cost of a quality laser system drops dramatically.

How to Apply: Step by Step

Choosing the Right Option

For most practices buying pre-owned aesthetic equipment:

• Best overall value: Equipment loan at 5-year term — lowest total cost + Section 179 eligibility
• Best for cash flow: Operating lease — lowest monthly payments, flexibility to upgrade
• Best rates: SBA 7(a) — if you qualify and can wait for approval
• Best for startups: Vendor financing or seller financing — most flexible qualification

Ready to explore financing for your equipment purchase? Contact our team for lender introductions, or browse our verified equipment listings to find equipment that fits your budget. For complete buying guidance, see our Complete Guide to Buying Used Laser Equipment.