Why Apply For Medical Equipment Financing For Your Business?
On average, renovating a medical space can cost as much as $300 per square foot. Assuming that your practice needs hundreds of square feet, getting your practice started alone can already cost millions of dollars. Because of this, many aspiring doctors are left discouraged, with some of them choosing to work for another practice or switching career paths. Applying for business finance to acquire new medical equipment seems necessary. While maintaining a medical practice is still expensive, there are more financing options available today compared to before. By taking your time and learning about your options, you can secure the right medical equipment financing you need to succeed.
What is Medical Equipment Finance?
Medical equipment finance is where a lender finances the purchase of medical equipment. It can be availed by doctors, firms, or companies involved in the healthcare industry.
It can be divided into three categories:
Medical Equipment Finance for Doctors
Self-employed doctors who wish to start their own medical facility can apply for financing under this category. The total loan amount will depend on their financial status and credit history, medical experience, and the expected profitability of the practice.
Medical Equipment Finance for Non-Individuals
In this category, financing is offered to public or private sectors that offer healthcare services. The average ticket size of the loan is usually higher compared to individual doctors.
Medical Equipment Finance for Dentists
As the name suggests, this is specially designed to finance the needs of dentists. However, the borrowing amount is generally lower as compared to the limit for other doctors.
Why is Medical Equipment Financing the Best Option?
Thanks to companies that offer medical finance, average hospitals will rent or own around 35,000 SKUs of medical equipment. In fact, most businesses today, including the healthcare sector, prefer financing equipment instead of buying one!
Here are the reasons why financing is a better option in terms of acquiring medical equipment:
Buying hospital equipment in cash and in full is difficult and nearly impossible. Doing this can cause the hospital to scramble and use the money from other budgets to make up for other essential purchases.
But that’s no longer a problem. Today, businesses that offer medical equipment financing have good and cost-effective payment plans available. Most of these businesses are even willing to finance without downpayment! This helps preserve your working capital and therefore, your budget stays consistent.
Plus, cash forecasting is now possible by financing medical equipment. You can create the hospital’s budget since you don’t have to worry about any unforeseen expenditures. In short, you don’t need an emergency fund since unforeseen costs like repairs or upgrades are already in the budget.
Technology will always depreciate and better equipment will constantly be released. Similarly, medical devices are always improving with added features in an attempt to improve healthcare services and patient care.
With medical equipment financing, you don’t need to worry about constantly replacing devices. Your hospital will less likely face the risk of having outdated or obsolete equipment since you have the option to upgrade. This means the hospital will always have access to the latest equipment.
If you’re on a budget, purchasing in cash may mean shopping until you find the cheapest option. Chances are you’ll end up buying used equipment that has outdated technology. When this happens, the hospital’s progress becomes slower and hospital workers may not be able to give the best service possible.
Having new and state-of-the-art equipment is always possible with medical equipment financing. Equipment that was once out-of-reach is now easily accessible with the help of financing. A hospital that readily has all the equipment it needs will always run at its full potential.
Hospitals with modern equipment operate faster as opposed to hospitals that don’t. If this is something you face at your hospital, equipment financing can help you get effective devices to give patients better care. Treating injuries and diseases can be made easier with advanced equipment. Speeding up recovery time can help improve a patient’s quality of life and even save more lives in the long run.
Why Choose Us As Your Medical Equipment Financing Brokers?
The amount of progress that medical science has made over the years is remarkable. However, these advancements also mean that acquiring them can cost a lot, not only for doctors but for patients as well. This is why medical professionals are always looking for ways to make modern and updated equipment more accessible without much financial strain.
As a team of professional brokers, we here at MHF Finance are partners with several major banks and non-bank financial institutions to help secure the financing that you need. If you need help starting up or managing your clinical practice, simply contact us and allow us to assist you in finding the right medical equipment financing deal for your business.