Financing Options

When purchasing an upgraded ultrasound there are several financing options. You can pay cash for their medical equipment, secure local bank financing or lease the equipment. We will try and explain some of the benefits and downsides of each option.

Leasing

Why is leasing the preferred method of financing for most medical and healthcare equipment purchases?

Equipment leasing allows you to finance 100% of the equipment purchase price including ancillary costs like training, installation and shipping. Leasing can also allow for flexible terms and payment structure, so if you need time to build your practice you can start fully equipped while making small monthly payments at the beginning of the lease and make larger payments when the equipment begins to generate income.

Medical equipment leasing is the number one type of medical equipment financing. It is very important to be an informed finance consumer. Physicians growing a practice depend on up to date technology, equipment and services to provide first rate care to patients and maintain a healthy business. You need to ensure the ability to acquire equipment while maintaining positive cash flow and conserving capital.

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Leasing vs Bank Loans

One major difference between equipment leasing and bank loans is how the debt is secured and the implications to your personal credit score. A bank loan requires collateral to secure the debt. Assets such as your home, your business, your car or boat can be used to ensure that you pay back the money you have borrowed and your personal assets may also have a lien or the loan may be linked to your personal credit. This can affect your personal credit score and your ability to borrow for personal reason. Since leased equipment is its own collateral, most leases can be structured so that your personal assets and your personal credit are protected.

Why is that important? When a large loan for medical equipment is recorded as debt on your personal credit, it affects you ability to make large future personal purchases like a home, boat or car.

Equipment Leasing:

· Conserves capital
· Allows for positive cash flow
· Protects your personal credit score
· Allows equipment to generate income and pay for itself

Small Business Administration loans (SBA)

The SBA, an agency of the federal government, does not actually provide loans, but guarantees the loans made by preferred SBA lenders when borrowers meet specific criteria. Because of this guarantee, loans can be made for longer terms and with lower payments than a traditional bank loan.

Most business purposes can qualify for a long-term, SBA guaranteed loan, including:
· Commercial real estate purchase
· Construction
· Business acquisition or expansion
· Equipment purchase
· Refinance/Debt Consolidation
· Working Capital

SBA loans usually have a term from 7-25 years depending on the purpose of the loan, and the rate is based on the prime rate at the time of the loan, the borrower’s credit score and the purpose of the loan.

Our lending partners have the access and the know-how to help you qualify for an SBA loan at the best possible rate. Their FREE consulting services can help you determine if an SBA loan is the best option for your business, or whether a more tailored financing program would better fit your needs.