Starting and growing a medical practice can be a lucrative career path. However, it can also require a significant investment upfront. In particular, medical equipment is costly. Fortunately, there are a few financing options that can help you to take on the costs. The following information will help you to find the right loan for your equipment needs.

Loan Types

There are a few options for getting a loan to help with equipment costs. These are some of the top choices:

• Equipment Loan: You can take out a specialized equipment loan to buy the items. This is an option for almost all types of equipment.
• Equipment Lease: Some lenders will provide leases on healthcare equipment. This can be a great way to get equipment without risking obsolescence. If you expect to upgrade within a few years, this may be the choice for you.
• SBA Loan: The Small Business Administration helps out businesses with competitive loans. These can help you buy equipment at a low cost, provided that the item has a long service life.
• Small Business Line of Credit: Alternatively, you may consider a line of credit for your practice. With this option, you can easily purchase multiple items without having to apply for new loans.

What To Expect

Each of the above options comes with some pros and cons. Typically, the interest rates on equipment loans are relatively affordable because the equipment can act as collateral. However, they are typically short. Therefore, the monthly payments may be high.

Working with a lender to secure an SBA loan may be the best option, especially for high-value equipment that is essential to your business. Otherwise, strongly consider a lease and explore each option available to you.

Some loans have balloon payments. This means that you will have to pay a large sum at the end of the loan. While this keeps the earlier payments low, it can be tough on cash flow.

Finding the Right Option

As you are evaluating your options, consider the position of your practice. One of the most important considerations is being sure that you can manage whatever monthly payments will be involved. If possible, consider pursuing the SBA option. This can be an advantageous choice. For many businesses, leasing is the next best option.

Learn More

Discover more about financing your medical equipment. With the above information, you will be ready to find the right financing for your needs.