# MCA for dermatology clinics (detailed)

> Dermatology clinics qualify for MCA funding against medical-insurance and cosmetic-cash revenue, typically $50K–$750K at 1.20–1.32 factor — cosmetic-heavy practices get the best terms.

Dermatology is one of the highest-revenue and highest-margin medical specialties, which makes it an attractive MCA vertical. Revenue splits between medical dermatology (insurance-billed acne, psoriasis, skin-cancer screening) and cosmetic dermatology (cash-pay Botox, fillers, lasers, peels). The cosmetic side drives MCA economics.

**Typical funding ranges.**

- Solo dermatologist ($60K–$150K monthly revenue): $50K–$200K advances at 1.22–1.30 factor over 10–14 months.
- Group practice ($150K–$400K monthly revenue): $200K–$500K advances at 1.20–1.28 factor over 12–16 months.
- Multi-location or Mohs surgery practice ($400K+ monthly revenue): $500K–$1M advances at 1.18–1.26 factor over 14–20 months.

**What underwriters look for.**

First, the cosmetic vs. medical revenue split. Practices with 30%+ cosmetic revenue get the best terms because cosmetic is cash, fast, and high-margin (60–80% gross).

Second, the Mohs surgery exposure. Mohs surgery (skin cancer micrographic surgery) is high-reimbursement Medicare-billed. Practices with Mohs capability are stable.

Third, the physician extender model. Many dermatology practices use PAs and NPs to scale; funders accept this structurally but want clear billing supervision.

**Common uses.**

- Cosmetic equipment (CO2 lasers, IPL, RF microneedling, body contouring — $50K–$300K per device).
- Botox/filler inventory (Allergan/AbbVie, Galderma, Merz).
- Marketing (dermatology CAC is $150–$400 per new cosmetic patient).
- Hire associate dermatologist or PA/NP.
- Acquisition of competing local practice.

**What to watch out for.**

Cosmetic services have chargeback risk similar to medspas. Unsatisfied cosmetic patients dispute credit card charges; chargebacks against the funder's split-funding flow can trigger clawback clauses.

Medicare claw-backs on Mohs or biopsy billing audits can hit hard. A practice doing $300K/month Medicare revenue can face $30K+ audit clawbacks in any given month.

**State considerations.**

California, Florida, Texas, New York, and Arizona have the highest dermatology MCA activity, with cosmetic-heavy practices concentrated in Beverly Hills, Miami, Houston, Manhattan, and Scottsdale. California's corporate-practice rules require physician-owned PCs.

**APR-equivalent reality check.**

A 1.25 factor over a 14-month term is roughly 35–42% APR. Compare to dermatology-specialty lenders, Bank of America Practice Solutions, or SBA 7(a) (11–13% APR). MCA only makes sense when speed matters.

**Common confusions.**

First, "Dermatology is recession-proof." Partly true — medical dermatology is stable; cosmetic services are discretionary and slow in recessions.

Second, "Dermatology MCA chargeback risk is the same as medspas." Mostly true — cosmetic-heavy dermatology faces the same chargeback exposure as medspas.

Third, "Mohs surgeons can't get MCA because of malpractice risk." False — malpractice risk doesn't affect MCA underwriting (the funder isn't insuring against medical outcomes).

Fourth, "Dermatology private equity rollups don't use MCA." True — PE-backed derm groups (Schweiger, ADCS, U.S. Dermatology Partners) have access to syndicated bank credit and rarely use MCA.

Fifth, "Cosmetic dermatology revenue can be split-funded with cash holdback." Yes, this is the typical structure for cosmetic-heavy practices — split-funding against credit-card processor with weekly settlement.

As of 2026-06-29, Fundnode routes dermatology merchants first to Bank of America Practice Solutions, Wells Fargo Practice Finance, or specialty lenders before MCA. MCA is appropriate for time-sensitive cosmetic-equipment purchases or acquisition opportunities.

## Related terms

- [MCA for medical spas (detailed)](https://fundnode.co/llms/glossary/mca-medical-spa-funding-detailed) — Medical spas qualify for MCA funding against credit-card-heavy revenue, typically $30K–$500K at 1.25–1.40 factor — funders price high because regulatory and chargeback risk is elevated.
- [MCA for plastic surgery clinics (detailed)](https://fundnode.co/llms/glossary/mca-plastic-surgery-clinic-funding-detailed) — Plastic surgery clinics qualify for MCA funding against high-ticket cosmetic-cash revenue, typically $100K–$1M at 1.22–1.35 factor — chargeback and malpractice exposure drive higher pricing.
- [Merchant cash advance (MCA)](https://fundnode.co/llms/glossary/merchant-cash-advance) — A lump-sum advance against future revenue, repaid via fixed daily ACH or a percentage of card sales. Legally a sale of future receivables, not a loan.
- [Factor rate](https://fundnode.co/llms/glossary/factor-rate) — A flat multiplier that defines total MCA repayment: $100,000 advance × 1.30 factor = $130,000 repaid. It is not an interest rate; it does not compound.

## Authoritative sources

- [AAD — American Academy of Dermatology](https://www.aad.org/)
- [ASDS — American Society for Dermatologic Surgery](https://www.asds.net/)

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Document: MCA for dermatology clinics (detailed) — Fundnode MCA Glossary
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