Medical Equipment Financing: How Clinics Can Prepare Before Buying New Equipment

Medical equipment can represent a major capital expense for clinics, physician practices, dental offices and other healthcare businesses. Financing the purchase may help preserve operating cash while the business adds or replaces equipment needed to serve patients.

If your healthcare business already has an equipment quotation, submit the purchase price and current business profile through the EIN Business Funding Quick Lead Pre-Qualification.

Can Medical Equipment Be Financed?

Potentially. Equipment financing is one of the business funding categories identified in the EIN Business Funding guidance. Qualification and terms depend on the provider, equipment and complete borrower profile.

What Should a Clinic Prepare Before Applying?

Prepare the equipment quotation, requested financing amount, business entity type, formation date, EIN, ownership percentage, annual revenue, business bank information and current credit profile.

Existing business credit cards, lines of credit and loans should also be organized because funding providers commonly consider current debt obligations.

What Factors Can Affect Equipment Financing?

Lenders commonly evaluate personal credit, business credit if established, time in business, annual revenue, cash flow, debt obligations, industry and other factors. Collateral or a personal guarantee may also be relevant depending on the financing structure.

Could SBA 504 Apply to Larger Equipment Purchases?

For larger long-term fixed assets, SBA 504 financing may be worth evaluating. The EIN Business Funding guidance identifies large equipment among the primary uses of SBA 504 financing and lists a typical down-payment range of approximately 10% to 20%.

If your clinic or healthcare company is actively purchasing diagnostic, treatment, dental or other business equipment, complete the EIN Business Funding pre-qualification to explore potential equipment-financing options.

FAQs

Can a clinic finance medical equipment?
Potentially. Equipment financing may support qualifying business equipment purchases depending on the lender, equipment and borrower profile.

What information should a healthcare business prepare?
Prepare the equipment cost, financing amount, entity information, annual revenue, banking information, credit profile, existing debt and intended business use.

Can SBA 504 be used for large medical equipment?
SBA 504 financing is designed for qualifying long-term fixed assets, including large equipment, subject to program and lender requirements.