Equipment Financing for the Medical Industry in America
Medical equipment financing is valued at over 130 billion USD in 2019 and is projected to grow by at least 6.6% CAGR (compound annual growth rate) well into 2026. Medical equipment financing is becoming popular with the rising pressure for medical equipment in global countries and also for the clinics that are springing up in North America. The costs of medical equipment and technological advancements also contribute to the need for medical equipment financing.
Equipment financing for the medical industry helps hospital administrators and physicians control their budgets and manage cash flow. Equipment financing also provides complete possession of the equipment and provides tax benefits. Advances in technology have made it necessary for the medical industry to upgrade equipment continually, and the trade war between China and the US also contributes to the increased cost of medical equipment.
There are more healthcare and medical equipment financing options and companies for the medical industry than in the past. Recent developments in medical equipment financing have been to set up an equipment line of credit (master lease agreement) with their acquisition of any future equipment for the company, an alternative medical a working capital line of credit. Master Equipment Line Agreement allows business owners to have access to equipment using this line of credit specifically for equipment. Unlike other working capital line of credit, it offers working capital for operating capital rather than equipment.
Commonly financing for doctors, home healthcare equipment financing, and MRI and X-ray are only accessible through equipment loans as they are so expensive.
Improved financing in the healthcare market, and more alternative medical equipment loans, alternative working capital loans and factoring are one many options medical professionals have when it comes to growing their practice.
Medical Equipment Loan Finance Companies
When looking to purchase medical equipment, you want the best options for medical equipment financing options you can find. Finding companies that are trustworthy and ethical, who look at specific situations, and a company that understands how important medical equipment financing can be, needs research to get the best financing available.
Some options for equipment financing for doctors, dentists, medical transport equipment, and all types of medical equipment include:
Traditional Bank Lending Source
There are large banks that offer healthcare equipment financing and have a range of options for financing and leasing solutions. The professionals in the banking business are there to build up strong and long-term relationships with medical industry to support business goals today and for the future. One bank is Wells Fargo that offers financing up to 100% of the equipment costs. Terms are up to ten years, customized financing, and financing for healthcare systems, hospitals, equipment loans for doctors, and equipment financing for dentists. Banks also offer strong terms for xray equipment loans and MRI equipment loans.
Equipment loans like these are mainly for big hospitals, clinics rather than small medical doctors operating in a smaller scale credit and financials must be well organized.
Alternative Medical Equipment Loans
The alternative medical equipment financing industry customizes equipment financing to match your medical business needs. They do not care what your company size is; they work with any size of medical needs.
Companies will analyze your credit, possibly your financial condition, to give you the best advice on financing options. Alternative medical financing companies have high-quality customer service departments that will keep on top of your requirements and loan needs. (The companies listed below do not reflect an endorsement; it is merely for information purposes.)
Bankers Healthcare Group issues medical equipment financing programs that give your medical company the funds you need to purchase the necessary equipment for your practice. The financing at BNG works to provide your company with extended terms of up to 10 years, approval in 24 hours, and funding in as few as three days. You do not need to provide personal collateral. BHG provides MRI equipment financing, home healthcare equipment loans, and equipment financing for doctors.
Most business finance brokers will offer equipment financing but knowing a company that specializes in equipment financing is to your advantage. A company that helps construction companies might not be as good of a lender to do medical equipment. Lender specializes on certiain industry they feel comfortable based on their risk tolerance. They have an expert support team and tailor term to meet the unique needs of medical equipment financing. Even if you have bad credit, equipment loan broker is sometimes the best route for more structure transaction like start-ups, low credit, no business credit the one who will help you get the medical equipment financing you need to get your equipment.
A company that started medical equipment financing is Madison Capital Equipment Finance. Started in 1997, the company provides leasing and alternative financing programs for medical equipment loans. They have plans to help healthcare companies get the equipment they need immediately and pay for it over a set amount of time. Monthly payments free up working capital. The company will also discuss with your company how an alternative medical equipment loan can help your medical business flourish.
Merchant Cash Advance
A merchant cash advance for equipment financing for doctors allows doctors to sell part of their credit card sales to a lender. This type of financing can benefit dentists, physical therapists, chiropractors, and general practitioners who have a private practice. Funds are used to invest in new medical equipment or open up the practice.
Cash advances are great if you are a doctor or dentist and need cash flow. Shorter waiting times and simple application processes are perks of cash advance loans.
Medical Equipment Loans
Medical equipment loans are designed for doctors to purchase additional medical equipment to keep their practices viable. Medical practices need state of the art equipment to attract a steady flow of patients. Many lenders will allow doctors and dentists to upgrade medical equipment with a medical equipment loan without the need to use upfront capital. Loans are designed to suit your needs and cash flow.
Line of Credit
A line of credit is set up to help medical providers cover short term funding needs through the process of revolving credit, and equipment loans for doctors can be streamlined. A line of credit has flexible payment terms, funds are available upon demand, and doctors can build up more credit. Another benefit of a line of credit for doctors is the ability to spend the funds any way you need for your medical practice.
You can invest in medical supplies, staff training, and even advertising campaigns. A medical line of credit can help you compete with larger practices.
With access to different loan options, bank loans, alternative financing, merchant cash advance, line of credit, and even medical equipment loans, doctors and dentists will find it more convenient and easier to compete with other local practices. Once you have secured a medical equipment loan, you do not need to worry about cash flow issues.