To secure a loan for medical equipment financing, you can consider the type of loan, the interest rate, and your business’s cash flow. Equipment financing is the process of getting a loan to acquire business equipment. Organizations can use equipment financing to purchase anything for their business needs. They can use equipment financing to purchase equipment and technology. For health care professionals & medical business owners, having state-of-the-art equipment is essential for delivering top-quality patient care. Unfortunately, medical equipment is very expensive, especially in the healthcare industry. Many medical providers turn to equipment financing because they don’t have the capital to purchase expensive equipment for health care services. That’s where medical equipment financing provides an option to medical business owners to acquire the necessary tools without exhausting their capital.
Equipment Financing Benefits
Equipment financing can offer a lot of benefits to medical business owners. Allowing them to get the equipment they need at a fixed rate & for a fixed period. Many business owners choose equipment financing to manage their cash flow, acquire equipment easily & they can easily manage their equipment’s life cycle.
Flexible Terms Issuers can tailor the maturity period for their financial need.
Lower Interest Rate As compared to bank loans, they have competitive interest rates.
Access to Capital Markets Companies can raise funds from industrial investors.
Diversification of Funding Sources MTNs help companies reduce dependence on a single source of funding.
Customizable Structure They can be structured as fixed or floating rate instruments, depending on the issuer’s preference.
Acquire Equipment Easily An equipment loan and equipment lease can often be executed quickly.
Manage Cash Flow To keep their cash on hand and make monthly payments for needed equipment.
Types Of Business Loans for Medical Equipment
SBA Lending
Small business administration (SBA) can help smaller clinics or practices with medical equipment.
Term Loan
Fixed loan amount for a fixed period
Short-term Loan
A short-term loan is known as a Bridge Loan. It’s ideal for purchasing medical equipment in an emergency.
Business Line Of Credit
It works like a business credit card. A lender approves you for a line for a set amount. You only pay interest on any funds that you borrow.
How To Apply For A Medical Equipment Loan
Make Sure Purchase Is Right For Your Health Care Facility
Once you know purchasing is the right option, you can move to the next level. You will want to compare the invoice price to the market value of the medical equipment. You should also determine if you will still need the equipment a few years from now or if it is likely to become outdated.
Gather Your Documentation
- Invoice your medical equipment
- Drivers license
- Invoice for the medical equipment
- Financial Statement
- Bank history
Complete The Application
Go to the application page and give us a call for more information
Speak To A Representative
After receiving the application, a senior executive will reach out to you. The call will focus on your best medical equipment financing options and fixed-term business loan offer. We offer complete transparency & and there are no hidden fees or surprises.
Get Approved
Your loans go through when your application meets underwriting equipment & gets credit approval. Next, the funds go to the equipment vendor to pay the invoice amount. The lender then holds the title to your business until the loan is paid off.
Equipment Loan vs Equipment Leasing
There are some crucial differences between equipment loan & equipment financing, although both sound similar. Equipment financing comes in the form of an equipment loan or lease.
Final Thoughts
If you want to buy new medical equipment, a loan could help your company. The interest on the loan adds to the total cost, so you can make sure your purchase will be worth it. To secure the right loan for your medical business, first, you identify the need & specific purpose for which you need the fund. This could be a Medical equipment purchase, then determine the cost and decide whether you need new or used equipment.
To secure the right loan for your medical equipment financing to research various financing options, assess your credit score, complete documentation and collaborate with medical equipment financially while also being prepared to negotiate terms and build long term relationships.