Like any other business, doctors' offices, medical labs, and hospitals or clinics need to be able to borrow money for a variety of business needs. Medical equipment financing is one of the most important of those needs, and it can be arranged for purchasing or leasing medical equipment. The equipment may be new or used. It may consist of a costly ultrasound machine or a discount laptop computer. It may be a single x-ray machine or an entire lab's worth of expensive microscopes.
Whatever the nature of the apparatus that is needed, most health care businesses that are in the market to buy or lease medical equipment will find that financing is fairly easy to attain. Health care professionals are generally considered good financial risks by most lenders. But being a doctor or a hospital doesn't necessarily guarantee a loan can be acquired or that financing will be offered at an acceptable rate of interest. Recent changes in how health care is provided and insured means that there are as many risks to setting up a doctor's office or medical lab as with any other type of business. So where loans are concerned, the same requirements for, say, plumbing equipment would apply to medical equipment financing.
As with any other business, a health care company that is just getting started will need to provide a business plan to its potential lenders. That new business should also be prepared to provide the professional credentials of those in charge, as well, so the lender will know that the business will be managed appropriately-including the task of loan repayment. Whether new or established, a borrower should also be prepared to provide the credit score of the business or, in the case of a single doctor, that doctor's personal credit score and his or her credentials. A bank statement may also be required, as may income tax returns or other financial documents... anything that might support the business's ability to receive corporate credit and make the loan payments.
And, of course, the success of a loan application will depend upon the type of equipment that is being purchased or leased, the equipment's age, and its condition. A lender may want to consider the future life estimate of the equipment as well. For depreciation purposes, medical equipment is usually assigned a life span of seven years. But as medical procedures change and advancements occur in health care technology, a business's equipment needs may change much more rapidly.
Medical equipment financing should be constructed to allow for the replacement of existing medical equipment with new technology as needed. And as there are advances in all technologies, medical equipment will advance as well, so more and more new equipment will be needed by health care practitioners. If the equipment is leased, this is generally a simple financing arrangement. The medical professional can basically have the equipment replaced by the leasing company and continue with the lease-with an adjustment in the monthly payment. If, however, the equipment is purchased instead of leased, replacing that equipment with new technology should be handled just as simply. In fact it should be like buying a new car-with a trade-in value on the old piece of equipment and a new loan on the new apparatus.
Whatever type of equipment is involved and whatever type of health care business is borrowing the money to purchase or lease it, medical equipment financing should be a simple matter. It should be fair to lender and borrower alike. It should keep up with the times and changes in technology so that medical practitioners can continue to save lives.
Corporate Credit Concepts specializes in Medical Equipment Financing. For more information about Medical Equipment Financing and how it might benefit your business, please CLICK HERE for a free phone consultation.