A recent large-scale Consumer Affordability Survey conducted by ZALEA, LLC found that 76% of respondents were unaware of financing options for cosmetic procedures.
ZALEA Co-founder Louis Scafuri explains, “Because financing plans for aesthetic treatments and procedures has been around for a long time, we were surprised to learn that over three-quarters of consumers were unaware that financing was available to them for cosmetic procedures from laser resurfacing to breast augmentation. This demonstrated the need for more empowerment of consumers so they are well informed about all of their options, which is at the core of ZALEA’s mission.”
The study also revealed that the top 5 treatment categories consumers are seeking financing for are; Skin Rejuvenation (lasers, peels) 41%, Body Surgery (breast augmentation, liposuction) 40%, Non-surgical Body Contouring Treatments 34%, Injectables (BOTOX, dermal fillers) 32%, and Facial Surgery (Facelift, Eyelids) 28%. In addition, almost two-thirds (62%) of consumers were more likely to have cosmetic procedures if they were aware that financing was a viable option. Rapid approval, along with credit card incentives, were shown to be a central component in the decision process to seek financing.
While all aspects of financing were of relative importance, consumers reported that the length of the loan, total interest and annual percentage rate (APR) were most important when looking for credit options to finance a cosmetic procedure. However, younger consumers, millennials age 21-29, ranked monthly payment amount as most important when looking for credit options. This group also highly values time-saving perks including online applications and quick approvals—with 64% of them more likely to apply online.
Mathew M. Avram, MD, JD, director of the Mass General Dermatology Laser & Cosmetic Center and director of Dermatologic Surgery at MGH in Boston, and a member of the ZALEA Advisory Board, “This study confirms that consumers today are doing their research online to identify the best dermatologists and aesthetic surgeons, and are seeking options to make cosmetic procedures more accessible and affordable. This survey confirms that financing for cosmetic treatments is a highly desirable service for patients.”
Finally, consumers surveyed also reported the desire to finance lower than expected loan amounts—with nearly half (47%) interested in financing procedures totaling between $1,000 and $4,000. Moreover, 62 percent of millennials age 21-39 stated a willingness to finance these amounts. For those respondents considering financing cosmetic procedures with credit cards, 46% stated that incentives are important in the decision-making process.