How to Offer Cosmetic Surgery Financing to Customers
Today, the demand for cosmetic surgery financing is undeniable.
At a time where cosmetic procedures continue to deplete the pockets of millions across the globe, it is only logical that service providers feel compelled to offer their customers affordable ways to access the operation of their choice.
After all, the stats vividly describe the situation of the cosmetic industry.
According to the 2019 Plastic Surgery Statistic Report issued by the American Society of Plastic Surgeons, in that year alone, Americans did over 18 million cosmetic procedures.
Credits: American Society of Plastic Surgeons
The same report goes on to share that those medical procedures accumulated a total of $16.7B in expenses which patients were required to fund.
Credits: American Society of Plastic Surgeons
While the total expenditure in the industry is exorbitant, further statistics shared by the association in their 2019 Average Cosmetic Costs Report indicate that the average fee for cosmetic surgical procedures ascends north of $7,000.
Credits: American Society of Plastic Surgeons
Needless to say, the elevated costs of these cosmetic surgeries coupled with their increasing demand urge respective cosmetic firms to provide their clients with ways in which they can finance their procedures.
This blog post examines the plastic surgery financing options which are most suitable for cosmetic firms to provide to their customers. We will also break down the best way to go about offering these cosmetic surgery financing so you can reap maximum rewards on your business service orders.
An Overview of Cosmetic Surgery Financing
Cosmetic surgery financing (also known as plastic surgery financing) is a type of loan granted to patients seeking a cosmetic procedure that enables them to cover the costs of their operation over a set period of time.
The firm offering the procedure is the one that determines the types of operations for which patients can access financing. However, in most cases, the service provider opts for finance plans which coincide with either all of the operations they deliver or at least the most common ones for which patients seek treatment.
These operations can be divided into two main categories: cosmetic surgical procedures and cosmetic minimally-invasive procedures.
When it comes to cosmetic surgical procedures, as mentioned previously, it is up to the service provider to determine the specific operations for which financing will be granted to patients.
However, finance options tend to cover facelifts/rhytidectomy, liposuction, breast augmentation, tummy tucks/abdominoplasty, buttock lifts, and implants along with nose reshaping/rhinoplasty and pectoral implants, among others.
Similarly, as it relates to cosmetic minimally-invasive procedures, the same applies. While the lender is free to choose the operations for which finance is provided, there are standard procedures that tend to meet the cut. These include botulinum toxin type A (botox/Dysport), chemical peels, sclerotherapy, laser hair removal, microdermabrasion, and soft tissue fillers, along with several others.
In all of the above cases, the service provider dictates the repayment terms, conditions, annual fees, prepayment penalties, and rates to which the borrower is subject.
Most times, due to the nature of cosmetic surgery financing, the repayment period requires the borrower to pay back the loan in monthly installments.
What Cosmetic Surgery Financing Does for Service Providers
Firms that offer lines of credit to patients seeking cosmetic surgery are promised loads of benefits in return.
Here is a breakdown of the major ones, including those which some service providers may not have necessarily considered as being beneficial to their firm’s operations:
- Augment your business’ service orders: Firms that provide cosmetic surgery financing have higher possibilities to attract their target audience than those which do not. After all, this is logical. Millions of plastic surgery operations occur frequently, most of which are costly. Therefore, by making finance plans available through which patients can access services at a more affordable rate, the natural consequence is that more and more clients will be willing to leverage your services. This is because the finance plans you offer act as an incentive that drives them to use your firm to access the operation of their choice.
- Better positioning among competitors: Cosmetic surgery financing is a huge opportunity for service providers to stand out among their competitors. As is expected, offering either a better or alternative service to those service providers operating in the same niche as yours is ideal in customer acquisition. The more attractive your finance plans are in comparison to those of your competitors, the more likely you are to draw your clientele to your firm.
- Boost brand image and customer engagement: Finance plans that are practical and financially viable tend to have a direct positive impact on both brand image and customer engagement respectively. In terms of brand image, they send the signal to customers that you care about their financial comfort, something which has a corresponding effect on customer engagement. According to a compilation from Medium, customers who are deemed to be engaged are 23% more profitable than those who are not.
Types of Cosmetic Surgery Financing
Prior to getting into the best way in which service providers can offer cosmetic surgery financing to their clients, we must shed light on some of the most common solutions that are present in the market today.
Doing so provides you with a foundation that orients you regarding how existing finance plans still constitute an inconvenience to your target audience. That way, you can adjust your solutions to suit.
One of the most common ways for cosmetic patients to finance their procedures is to use their healthcare insurance to offset the cost.
Essentially, some tend to do so via their health insurance which covers either a part of the whole of the risk associated with the operation.
In order to access this type of service, after selecting an insurance company or plan, the patient usually adopts a standard finance structure to which they must adhere when issuing payments.
These structures take the form of either a recurring debit tax which is deducted from one’s payroll or monthly payment premiums which the patient is obligated to stick to.
While medical insurance is a common option for persons looking to finance cosmetic procedures, it is far from an ideal solution for patients.
This is mainly due to:
- Restrictions regarding coverage: Patients already struggle to source insurance plans that offer coverage for cosmetic surgery. Once they do find one, in most cases, the selected plan does not offer coverage for all possible plastic surgery procedures. Needless to say, this represents a major inconvenience for patients seeking procedures for which there is no coverage or where the provisions offered by the insurance company are very limited.
- Non-negotiable terms and conditions: Insurance plans tend to be rigid, not allowing the beneficiary to modify, negotiate, or alter its corresponding terms and conditions once they have been presented. Therefore, patients find themselves subject to unfavorable restrictions that do not coincide with the type of flexibility they would like with their finances.
Unsecured Personal Loans
Another common option that patients have at their disposal is to take an unsecured personal loan. This is usually done through an individual financial entity that acts as a lender, in some cases, on behalf of the cosmetic surgery provider.
By their very nature, unsecured personal loans do not force the patient to agree to compromise assets or collateral against the value of the loan in the event that there is a breach in its repayment.
While this may initially seem like an attractive option for future cosmetic clients, not all that glitters is gold.
The lack of security surrounding the loan implies a higher interest rate. This is because, from the point of view of the lender, the loan is riskier since none of your personal assets bind you to its repayment.
What’s more, in most cases patients are required to have a high credit score or squeaky-clean credit report history from a credit card or another credit source. Otherwise, lenders will be less likely to grant them funding for their cosmetic operation, especially if they have a bad credit history.
If things aren’t as bad as they are already, unsecured personal loans do not grant the borrower any type of tax benefit. Consequently, for many patients, the risks outweigh the benefit of securing financing since the conditions upon which the loan is granted are not favorable.
On occasion, a patient may resort to one or more loan types which may be considered unconventional for the cosmetic surgery niche.
These types of loans are usually bank loans which may be granted by a financial institution as part of a medical loan.
While it is true that through the bank a patient may secure the financing they need, bank loans have their drawbacks.
To begin with, most loans are taken against a patient’s personal assets such as their home or property. Therefore, from the standpoint of a patient, these types of loans are significantly riskier since an issue in repayment can spell the foreclosure or permanent confiscation of their asset.
Then, patients have to deal with the inflexibility of the repayment terms and conditions of these types of loans for which banks are notorious for.
Needless to say, while some patients may find these types of loans useful, in most cases, it implies making a series of compromises which are not to everyone’s tastes.
The Beauty of Customized Surgery Financing
In short, the dangers that traditional finance plans for cosmetic surgery pose to patients center around terms and conditions. To be more concrete, they typically involve unfavorable repayment periods, compromises with assets, lack of tax benefits, and even limitations with the loan amount that may be granted.
All in all, due to the elevated cost of cosmetic surgery operations coupled with the relative inflexibility regarding their terms and conditions, these types of finance options are not attractive to clients.
By natural consequence, the types of plans which match the specific financial situation of specific individuals within your given target market are flexible cosmetic surgery finance plans. These plans are customized to suit the specific needs and profile of the borrower, thus maximizing the chances that the finance solution matches the unique condition.
In doing so, from the standpoint of a service provider, you significantly diminish the possibility that a patient may be financially inconvenienced when accessing your services. That way, they can comfortably utilize you for their cosmetic surgery operation and you boost your service order.
Needless to say, defining the finance plan that’s most adequate for your customers can be challenging, let alone sourcing the capital to fund them. Instead, here’s how you can partner with a flexible third-party lender to secure your patients the solutions they need.
TIC for Cosmetic Surgery Financing
Time Investment Company (TIC) is a financing company with more than forty years worth of trajectory in providing customized, made-for-you finance solutions to businesses and their customers in the United States.
These finance solutions include loan programs granted to businesses for their growth along with flexible finance plans that we customize and develop for a business’ customers so that they can comfortably access your services. To be concrete, we work directly with businesses to identify terms and conditions of service repayments that are functional, practical, and financially viable for your customers.
For decades, we have assisted over 250K clients in successfully funding over $775M in finance solutions.
We have collaborated with service providers in the cosmetic surgery financing industry to provide these types of solutions for myriads of their operations.
As a business run by a close-knit family, we understand the challenges faced by healthcare providers in this niche and work diligently to ensure that we can produce finance solutions for your customers that are equally as beneficial for them as they are for you. Our values are rooted in ensuring that both businesses and customers alike can have smooth, stress-free financial transactions when delivering and acquiring a service.
Our partnering companies also enjoy the support of an innovative dashboard that monitors all your customer payment information in real-time. That way, you can easily keep track of all payment transactions that are facilitated through our flexible finance plans.
Leverage the customer service, attention to detail, and tech support of a company that has a history of success in aiding businesses across multiple niches.
Takeaways for Cosmetic Surgery Financing
To recap, cosmetic surgery financing is a must-have for service providers. They are integral in boosting service orders and growing revenue. What’s more, they are also important in helping you stand out among your competitors.
The best way to go about offering cosmetic surgery lines of credit is with flexible payment options or payment plans which match the needs of your customers and encourage them to utilize your services.
We at Time investment Company can help you offer these types of financial solutions.
Reach us via (800) 236-1177 to learn more on how you can access them for your customers today.