Picture of a medical monitor
medical equipment


Having the right medical equipment is important for any practice to run efficiently and stay on the cutting edge of technology, that’s why we offer many medical equipment financing options for you. Before you review the loan terms, it is important to know the lifespan of the medical equipment you plan to finance. Generally, the term of the loan should be the same as the expected lifespan of the new equipment. Banks are the best option for medical equipment financing because they usually offer the most favorable interest rates, however, they have strict credit requirements.

What do medical equipment lenders look for?

Although the medical equipment may be used as collateral for the loan, lenders will still require a good credit rating. Lenders may also require bank statements, personal tax returns, business tax returns, business registration documents, and proof of profitability for 2 out of the last 3 years of business, and a debt service coverage ratio (DSCR) of 1.25x or higher. Your DSCR can be calculated by dividing your Net Operating Income by your Debt Services.

Borrower Tips:

● Be sure to have proof of profitability for at least 2 years.

● Finance the medical equipment for the same length of time of the equipment lifespan.

● Prepare a detailed business plan to show the lender and include how you will use the loan to increase profitability.

● Check your monthly payments with our Business Loan calculator.