What is Medical Equipment Financing?
Medical equipment financing is financing that helps medical professionals purchase the expensive equipment they need to provide the best care possible. A lot goes into running a successful medical facility or office medical practice, including access to effective and up to date equipment, and the costs to acquire the necessary equipment can be absolutely massive. Fortunately, medical equipment financing can help you keep overhead costs low while making sure you have the most up to date equipment.
Medical Equipment financing is available to hospitals, nursing homes, private practice, veterinarians and virtually every other certified medical facility. It’s the patients that are the most important part of any practice and it’s important that they’re ensured the best possible treatment by having access to the best possible equipment.
It’s possible to secure pretty cheap financing from certain medical equipment vendors. In fact, some offer zero interest if your practice has a long history and a great credit score. Some companies make enough money off of selling you the equipment in the first place that they don’t mind offering you a payment financing plan at no extra cost. If you aren’t able to find a medical equipment vendor that offers you zero interest financing (either because the vendor doesn’t offer it or your credit score is too low), you should expect to see between 6-12% in interest.
If you decide to go to a bank instead of a vendor for financing, you’ll find a similar interest rate, starting at around 6%, but getting approval can be tough. You’re going to need to have a pretty high credit score, and a solid financial history in order to be approved. If you have a great credit score already it may be worthwhile trying to acquire a zero-interest financing plan directly from a vendor instead.
If you choose to go to a bank for medical equipment financing, you’ll need a credit rating of 720 or more in order to be approved. The price of medical equipment is too high for a bank to play fast and loose with their financing plans so it’s absolutely crucial you have a high credit score.
Vendors will generally be a little more lenient with their credit requirements, but keep in mind that the more you'll pay in interest. Be sure to look closely at the terms and rates that a vendor offers for equipment licensing before ever agreeing to anything. If a vendor is vague about their terms it’s important to be wary and ask for more information before agreeing to anything.
Finding the right lender can take time, but in the end it can be well worth it to get your business running how you want it.