Medical equipment is critical to the day-to-day operations of any hospital, clinic, pharmaceutical company or dental office. However, it often requires significant investment, which is not feasible for many businesses in the healthcare industry.
While basic diagnostic equipment, such as a blood pressure monitor or stethoscope, can be easily purchased with cash, other types of equipment, such as an X-ray or ultrasound machine, can be purchased easily. rise to $100,000 for a piece of premium equipment.
MRI machines can be more expensive, ranging from $225,000 For entry-level machines, premium models cost up to $3 million.
The problem is, many businesses don’t have the liquidity to purchase equipment with their own money. But can you use a business loan to buy medical equipment? Learn more in this article:
Can I get a loan to buy medical equipment?
So, can you get a business loan to buy medical equipment? The answer is yes – it’s an excellent option for companies in the healthcare industry to purchase the equipment they need without having to pay out of pocket.
There are a variety of business loan options you can choose from, with the most common repayment terms including 1 to 7 yearsdepending on your creditworthiness and the type of loan you apply for.
The medical equipment you purchase often serves as collateral for the loan, which helps reduce the lender’s risk. This type of mortgage can make it easier for you to get a loan, even if your credit score is less than perfect.
What are the benefits of taking out a loan to purchase medical equipment?
Even if you have the cash to purchase medical equipment without taking out a business loan, sometimes keeping your liquidity intact can be a wiser decision, and use loan Make an investment.
Here are some of the top benefits of taking out a loan to purchase medical equipment:
- Preserve cash flow – Financing your medical equipment allows you to spread the cost over time rather than paying the full amount up front. This way, you can maintain cash flow for other operating expenses or investments.
- Upgrade to quality equipment – You may have enough cash to purchase lower-tier equipment for your medical practice, but upgrading to top-of-the-line equipment is often out of the question without applying for a business loan. Access to advanced technology can improve patient care and increase operational efficiency.
- Benefit from tax benefits – If you use a business loan to purchase medical equipment, you may qualify for tax benefits such as deductions under Section 179 of the IRS tax code. You can usually deduct the full purchase price of the equipment in the year you finance it, effectively reducing your taxable income.
- Maintain working capital – By preserving cash and using loans to finance medical equipment, you can also ensure that you keep your working capital intact. This gives you more funds available for payroll, inventory, and other expenses.
- Build business credit – Buying medical equipment with cash will not build your business credit, but using a loan definitely will. A good credit profile can make it easier for you to obtain future financing at better terms and rates.
In addition, purchasing medical equipment with a business loan will also make your budget easier since the loan usually has a fixed monthly payment. Knowing exactly how much you need to pay each month is crucial to planning your finances.
Flexible terms, fast access to funds, and fast approval and payment processesif you apply to National Business Capital, There are other great benefits to getting a medical equipment loan.
What types of loans are available to purchase medical equipment?
If you’re looking for a business loan to purchase medical equipment, the good news is that you have a variety of medical loan options. Some of the most common include:
business credit line
While it’s not technically a loan, a business line of credit is a great financing option that allows you to obtain Set fund amount You can withdraw as needed and pay interest only on the amount you use.
Requirements may vary by lender – with National Business Capital you only need to be in business for one year to generate at least $500,000 in annual income.
This financing option gives you the flexibility to finance multiple smaller purchases rather than taking out a single loan for large medical equipment.
Medical equipment financing
Of course, if you want to finance big Medical equipment – such as an MRI machine or ultrasound machine, medical equipment financing may be a better option. This type of financing can reduce your overhead costs and improve your cash flow while allowing you to upgrade to more advanced technology for your business.
Medical equipment financing is specifically designed for purchasing medical equipment and allows you to borrow funds based on the cost of the equipment you need. The equipment itself usually serves as collateral and you can get up to 100% financing.
business term loan
Term loans are probably the most common financing option for healthcare businesses because they can be used to any purpose – From purchasing medical equipment to paying for unexpected expenses or investing in new technology.
This type of funding allows you to receive a lump sum of money and repay what you borrow over a flexible period – ranging from a few months to 25 years, depending on a number of factors.
Small Business Administration Loan
If you want to buy medical equipment, you can also opt for an SBA loan—a government-backed program backed by the Small Business Administration (SBA)—that offers lower interest rates and longer repayment terms.
The Small Business Administration (SBA) offers various loan programs, such as SBA 7(a) and SBA 504 loans, that can be used to finance medical equipment.
However, they generally require more documentation and a longer process – up to 8 months if you apply without National Business Capital and up to 45 days if you apply with National Business Capital .
Who can benefit from purchasing medical equipment?
Purchasing medical equipment can benefit numerous organizations within the healthcare industry, such as:
- hospitals and clinics
- private clinic
- Ambulatory Care Center
- home health care provider
- nursing home
- assisted living facility
- Rehabilitation and Physiotherapy Center
- veterinary clinic
- medical laboratory
- pharmaceutical company
- dental clinic
- public health organization
In other words, it can benefit any organization or healthcare facility that requires medical equipment for daily operations. The right equipment can improve the quality of care, increase operational efficiency and lead to better financial performance.
Obtaining a Business Loan to Purchase Medical Equipment: National Business Capital
If you want to qualify for a business loan to purchase medical equipment, look no further national commercial capital. With more than $2 billion raised since 2007, multiple awards and a team of experienced business financial advisors, we have everything you need to find the best financing option for your project.
Are you ready to get started? Apply here.