With people enjoying longer life expectancies than any other time in history and also requiring help with managing chronic diseases, healthcare businesses are in a great position to help them. However, they often struggle with the demand for service due to not having enough medical equipment or working with equipment that has become outdated. With many healthcare facilities not receiving payment for services for months, especially those that work with a large number of Medicare patients, finding the available cash to invest in new equipment can be challenging. That is where medical equipment financing comes into play.

Medical Devices and Medical Equipment

A medical device is any piece of equipment used primarily for the diagnosis or prevention of a disease or illness. These devices help to detect and correct problems as early as possible while they might still be treatable. Medical equipment is typically larger and often used in conjunction with medical devices for diagnostic and treatment purposes.

Options for Obtaining Medical Equipment Financing

Most healthcare administrators head to a bank to apply for a loan when they need equipment financing. Depending on the amount financed, loan approval may be contingent on pledging an existing piece of equipment as collateral. Borrowers should be prepared to show profit and loss statements for the healthcare facility, tax returns, proof of working capital, and other financial items to prove creditworthiness.

Equipment financing through the Small Business Administration is often an attractive option due to the lower rate of interest and longer time to pay the loan in full. This is due to the SBA guaranteeing payment of the loan to banks and other lenders.

A medical supply store or another healthcare business that has frequent cash register transactions may qualify for a merchant cash advance. This provides the business with a lump sum of money in exchange for a daily percentage of credit and debit card receipts.

Interested in exploring additional medical equipment financing options? Contact Simplicity Funding today.