It’s not surprising that many doctors, dentists and other healthcare professionals need financing. After all, a large part of caring for patients involves purchasing expensive equipment with advanced treatment options. These systems include diagnostic systems, disinfecting equipment, treatment systems, medical furniture, computer systems and billing software. Many of these equipment needs are also specialized for the field you work in, increasing the cost even more. How can you get the financing your healthcare business needs?
What Type of Healthcare Financing Can You Get for Medical Equipment?
There are several options for medical professionals when it comes to outfitting their businesses with state-of-the-art equipment. These types of financing can also help with upgrades. Loans backed by the Small Business Administration are popular because of their low interest rates, relative flexibility, large loan amounts and generous terms. Of course, if you have government-backed student loans you’re still paying off, then SBA financing isn’t an option.
In that case, you may want to use an equipment loan. This type of loan uses equipment as collateral, giving you funds to purchase even expensive equipment with relative ease. Another option is equipment leasing, where the leasing company buys the equipment for you and allows your business to “rent” it with small monthly payments spread out over a longer time. This option is especially popular with healthcare businesses that are just getting started, in addition to practices that need to upgrade frequently to keep up with competitors.
Finally, you can use invoice factoring as a source of working capital for your business. This is a good choice if you need to take advantage of discounts or need assistance in balancing your cash flow.
Why Should You Work With a Lender Experienced in Medical Financing?
Many of the devices your business needs are complex in nature. Certain features in diagnostic equipment are worth investing extra because they make your business stand out. For example, patients who need to get specialized braces may enjoy 3D imaging much more than traditional dental molds.
How can you explain to the lender the importance of getting sufficient capital for the best equipment? If you work with a bank that is experienced in medical financing, it will trust your judgement. It’s much easier to get the loans you want, for the specific equipment you want, with the payment schedule you want, when you partner with the right lender.
This is also true for developers of medical equipment, medical supply businesses and device manufacturers. The right lender makes all the difference in the world.