Medical equipment is very important in the daily operation of any hospital, clinic, pharmaceutical company, or dental practice. However, it often requires significant investment, which is impractical for most businesses in the healthcare industry.
While basic diagnostic equipment, such as blood pressure monitors or stethoscopes, can be easily purchased with cash, other types of equipment – such as x-ray machines or ultrasound machines, go up and go $100,000 for a piece of high-end equipment.
MRI machines can be pricier even, since $225,000 with entry-level machines up to $3 million for premium models.
The problem is that many businesses do not have the money to buy equipment with their own money. But can you buy medical equipment with a business loan? Read more in this article:
Can I Get a Loan to Buy Medical Supplies?
So, can you get a business loan to buy medical equipment? The answer is yes – it's a great option for companies in the healthcare industry to get the equipment they need without spending money out of their pockets.
There are many business loan options to choose from, with payment terms often varying 1 to 7 yearsdepending on your creditworthiness and the type of loan you are applying for.
The medical equipment you buy often serves as collateral for the loan, which helps reduce the borrower's risk. This partnership can make it easier for you to get a loan, even if your credit score is less than perfect.
What are the Benefits of Buying Medical Supplies with a Loan?
Even if you have the money to buy medical equipment without taking out a business loan, sometimes it can be a smart decision to keep your finances intact, and use the loan making an investment instead.
Here are some of the major advantages of buying medical equipment on loan:
- Save Cash Flow – Financing your medical equipment allows you to spread the cost over time instead of paying the full amount upfront. This way, you can save cash flow for other operating expenses or investments.
- Upgrade to high quality tools – You may have the money to buy low-end equipment for your medical practice, but upgrading to a higher level may not be possible without taking out a business loan. Access to advanced technology can improve patient care and increase efficiency.
- Benefit from Tax Benefits – If you purchase medical equipment with a business loan, you are eligible for tax benefits, such as a deduction under Section 179 of the IRS tax code. You can deduct the full purchase price of the equipment in the year it is financed, effectively reducing your taxable income.
- Save Working Money – By saving your cash and using a loan to finance medical equipment, you also ensure that you keep your working capital intact. This gives you more available cash to cover payroll, inventory, and other expenses.
- Build Business Credit – Buying medical equipment with cash will not create debt for your business, but using a loan definitely will. A strong credit profile can make it easier for you to secure future financing with better terms and rates.
In addition, acquiring medical equipment through a business loan will also make your budget easier as the loan usually comes with fixed monthly payments. Knowing exactly how much you have to pay each month is essential to planning your finances.
Flexible terms, quick access to funds, and quick approval and payment processif you apply with National Business Capital, Some great benefits of getting a medical equipment loan.
What Kinds of Loans Are Available to Purchase Medical Supplies?
If you are looking to get a business loan to buy medical equipment, the good news is that there are many medical loans to choose from. Some of the more common ones include:
Business Line of Credit
Although this is not technically a loan, a business line of credit is an excellent financing option that allows you to set the amount of money which you can draw on as needed, paying interest only on the amount you use.
Requirements can vary by lender – with National Business Capital, you'll only need one year in business to be productive at least $500,000 in annual income.
This alternative financing method allows you to pay for many small purchases instead of taking out one loan for a large piece of medical equipment.
Medical Device Fees
Of course, if you want to finance a big a piece of medical equipment – such as an MRI machine or an ultrasound machine, financing medical equipment can be the best option. This type of financing can reduce your overhead costs and improve your cash flow, all of which allow you to upgrade to more advanced technology for your business.
Medical equipment financing is designed specifically for the purchase of medical equipment, allowing you to borrow money based on the cost of the equipment you need. The tools themselves usually act as collateral, and you can stand up 100% financing.
Business Term Loans
Term loans are probably the most common financing option for medical businesses, as they can be used any purpose – from buying medical equipment to paying unexpected expenses or investing in new technology.
This type of financing allows you to get a lump sum, and pay back what you have borrowed over a flexible period of time – from a few months to 25 years depending on a variety of factors.
SBA loan
If you are looking to buy medical equipment, you can also opt for SBA loans – government-backed programs supported by the Small Business Administration (SBA), which are associated with low interest rates and long 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 usually require additional documents and a time-consuming process – up to 8 months if you apply outside the National Business Capital and up to 45 days if you apply with the National Business Capital.
Who Can Benefit From Buying Medical Supplies?
Purchasing medical equipment can benefit many organizations within the healthcare industry, such as:
- Hospitals and clinics
- Private practices
- Outpatient care facilities
- Home health care providers
- Nursing homes
- Assisted living facilities
- Rehabilitation and physical therapy centers
- Animal clinics
- Medical laboratories
- Pharmaceutical companies
- Dental procedures
- Public health organizations
In other words, it can benefit any organization or healthcare facility that needs medical equipment to run its daily operations. The right equipment can improve the quality of care, improve efficiency, and lead to better financial performance.
Obtaining Business Loans to Purchase Medical Supplies: National Business Finance
If you want to qualify for a business loan to purchase medical equipment, look no further National Business Capital. With $2+ billion in funding since 2007, multiple awards, and an experienced team of Corporate Finance Advisors, we have everything you need to find the best financing options for your project.
Are you ready to get started? Apply here.
