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What You Need to Know About Asset-Based Lending for Medical Practices

What You Need to Know About Asset-Based Lending for Medical Practices

Equipment loan. Providing quality healthcare for patients. This often means managing updated technology and installing latest medical equipment in a facility. 

Many times when there is need of expansion or renovation; and capital expenditure on equipment may not be feasible due to the high cost of medical assets or a tight cash flow situation

What’s more…

medical equipment loans

According to a study conducted by National Small Business Association (NSBA), one-quarter of small business owners accept that they can’t find the required funds for their practice when needed. And only 15% of the required financing comes from bigger banks. 

That is when applying for a equipment loan from First Capital Business Finance can help kick-start, refresh, or expand your business. 

By choosing asset-based financing, you can tap into the required funds when needed to grow your medical practice.

How Does Asset-Based Lending Or Equipment Loan Help

Asset-based equipment financing provides a loan for a pre-determined term. The value of the asset that’s being financed works as a collateral. Not only does it provide the essential cash flow, but also increases flexibility to lean on emerging business opportunities.

The advantages of securing asset finance are:

  • Better control over cash flows
  • Ability to tap into high-return investment opportunities through refined opportunity costs 
  • Increased purchasing power to buy operation-critical resources
  • Higher work efficiency with latest and up-to-date equipment

Asset-Based Lending Vs. Traditional Loan

In conventional terms, asset-based lending is nothing like a traditional loan. That means it doesn’t place debt on your accounts. 

Unlike traditional loans, you needn’t wait for months to get financed. The turnaround time for loan can be as less as 48 hours – from application to financing.

Here your asset collateral is the guarantee that asset-lender will need for payment. Hence, at times you don’t have any personal liability on the line to secure financing. 

You can even improve the credit ratings of your medical practice through equipment financing for bad credit. Just stay in compliance with payments to help your not-so-great credit score. 

How Does Asset-Based Lending Work for Medical Equipment

Credit business loans

Consider asset-based lending when you want to invest in an asset with longer life expectancy. It collateralizes the debt, so working closely with the lender makes more sense. 

Another significant factor is the rate of interest. It features into the total cost of owning an asset. The terms will depend on factors like:

  • Type of loan you apply for (e.g. title loans, cash advances, line of credit, and invoice factoring).
  • The creditworthiness of the business entity.
  • Terms & Finance Amount.

Financial Info to Get Started

At First Capital Business Finance we offer easy terms to finance valuable medical equipment. Some or more of the following financial information needed to start the process may be:

  • Bank statements
  • Balance sheets 
  • Tax details
  • Profit and loss accounts 

We specialize in medical equipment financing. So, you’ll have access to different funding options when you apply for finance with us. 

What Medical Assets Can You Finance through Asset-Based Lending?

hospitality equipment financing

Whether you need to obtain new machinery. Or to spread out your inventory. Or moving to a larger facility, it’s essential to have a renewable funding option to cover your back. 

Asset-based lending offers flexibility to secure finance for any medical equipment that needs capital expenditure. 

  • CT scanners
  • X-Ray and 3D imaging machines
  • Surgical tables
  • Ambulances
  • MRI and radiology equipment
  • Dental chairs
  • Surgical equipment
  • Hospital beds and examination tables
  • Dermatology equipment
  • Optometry equipment
  • Chiropractic equipment

Can You Secure Asset-Based Lending for Used Medical Equipment?

With First Capital Business Finance, you can.

Medical equipment, typically, has a shorter lifespan. For used equipment financing, the condition of the equipment and their type determines the extent of down payment, repayment, and interest rate. 

Here, asset-based financing is a great option because it is often structured as a flexible system. The financing is available as lines of credit where you can take out cash when you need it.

Working with an experienced lender like First Capital Business Finance can make this process smooth for you. Gather the required documents when applying for the loan. Even if there are negative influences like bankruptcies. Or low credit scores, or no down payment. You’ll get multiple funding options to keep your business running. 

Get the Best Medical Equipment Loan from First Capital Business Finance

If you’re looking to buy heavy medical equipment for your facility, contact First Capital Business Finance. We have many options for equipment loans to suit every business need of your medical practice. Contact us today at our toll-free number 888-565-6692.

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