When considering equipment financing for your medical practice, there are several elements to consider. Equipment loans enable you to purchase the necessary equipment without spending capital up front, and allow you to spread out payments over time. Deciding which type of financing is best depends on the financial needs of your practice, as well as potential interest rates and term lengths. Be sure to take all factors into consideration before making a decision that’s right for you and your medical practice.
When choosing a medical equipment financing option, it is important to consider the availability of special tax credits and incentives, the vendors offering leasing and loan programs, as well as the overall cost and payment terms. With access to an array of equipment loan options, healthcare facilities have greater flexibility in meeting their financial needs. By taking a broad view of financing needs and exploring different options, organizations can manage cash flow while ensuring they equip their facilities with high quality equipment that is reliable, safe, efficient and cost effective.
Finance a Variety of Quality Assets with Fiscus Capital Funding
The medical equipment finance solutions from Fiscus Capital Finance can be customized to suit your needs and we will consider a very wide range of equipment, including pre‐owned equipment. We specialize in designing medical equipment finance solutions which allows our clients to invest in the following medical equipment from top global brands:
- Veterinary radiology equipment
- Dentistry equipment and furniture
- Medical radiology equipment
- Ophthalmic equipment
- Oncology equipment
- Pharmaceutical manufacturing equipment
- Hospital furniture
- Rehabilitation equipment
- Endoscopy equipment
- Laboratory equipment
- Various medical equipment
By financing your medical equipment with Fiscus Capital Finance, you gain access to the latest medical equipment and software using the smartest finance solutions.
Why Equipment Financing Requires A Credit Check
Credit checks are required by equipment lenders in order to examine your financial history and calculate your risk of loan default. Along with your other qualifications, this data is used to determine whether or not your application is accepted and to determine your interest rate and repayment conditions.
Lenders may be more lenient on qualifying criteria if they see the machinery you want to buy as collateral for the loan. Equipment financing requirements may be less stringent depending on factors such as your business’s age or credit score.
How To Get Equipment Financing With Bad Credit?
Lenders will still check your credit report regardless of whether your credit is good, bad, or in between when you apply for equipment financing. Small business owners with credit ratings as low as 550 may be able to get financing from certain equipment lenders, but they will likely incur higher interest rates and be given shorter payback periods.
If your business needs equipment but you have weak credit (FICO 630 or below), here are three things you may do.
Organize Your Business’s Finances
Business loan applicants would be wise to have their financials in order first, so they can assess their company’s viability from the lender’s viewpoint before shopping about and applying for loans.
If you’re worried about your company’s credit rating, it’s a good idea to compile a list of financial records that demonstrate the success of your enterprise, such as its cash flow and yearly sales. Application documents including bank statements, tax reports, profit & loss statements, and balance sheets may also be prepared.
Boost Your Application
Other approaches to improve your equipment finance qualifications before submitting an application include:
- Improve your credit score. You may examine your own credit score and work to improve it in order to aid with your loan application. You may check your credit record for inaccuracies and dispute them with the appropriate credit bureau, make more frequent payments, and pay down debt.
- Provide extra collateral. Although the equipment you’re buying acts as security for the loan, you may be able to supply extra collateral, such as property or other equipment, to secure the financing.
- Raise your down payment. A down payment of up to 20% may be required by equipment lenders. If you can make a higher down payment on your business loan, you may be able to boost your chances of approval while also lowering your monthly payments.
- Obtain a co-signer. If you have fair or terrible credit, a co-signer with good credit may be able to help you qualify for an equipment loan. However, keep in mind that your co-signer will be held liable for the loan if you are unable to repay.
Research And Compare Multiple Lenders
If you need financing for business equipment but have terrible credit, shopping around for the lowest rate is essential.
Bad credit because business loans have higher interest rates and shorter payback durations than other forms of financing, it’s even more crucial to assess the loan’s cost and ensure it’s something you can afford.
Equipment Financing Rates And Terms
Repayment lengths and interest rates on equipment financing might vary based on the equipment finance firm, your company’s credentials, and the expected value of the equipment you’re acquiring.
- According to anecdotal evidence, equipment financing interest rates vary from 4% to 30% APR. The Annual Percentage Rate (APR) is the cost you pay each year to borrow money, including fees, expressed as a percentage.
- Generally, equipment loan terms are based on the expected life of the equipment or machinery you’re buying. A shorter term may force you to scramble to make payments, but a longer period implies you’ll continue paying for the equipment even after you’ve stopped using it.
Equipment Financing Vs. Equipment Leasing
- Equipment leasing may be offered by lenders as an alternative to equipment loans. You rent the equipment from a vendor, lender, or specialist equipment finance organization using equipment leasing. At the conclusion of the lease, you may either return the equipment or extend the lease.
- Equipment leasing may help you save money and get the most out of your investment. For example, when a piece of equipment ages, it loses value and productivity, thus leasing it for a short period may be a wise decision. Some equipment leasing businesses also provide the opportunity to purchase the equipment at market value at the end of the lease period.
- On the other hand, if you want to use the equipment for an extended period of time, leasing may be more expensive than financing. Leasing is “likely the best choice” for equipment that will be used for 36 months or less, according to the Equipment Leasing and Finance Association. It makes more sense to purchase if you want to use it for a longer period of time.
When it comes to choosing medical equipment financing, the decision must be made carefully. Financing can make it easy to acquire essential medical equipment sooner rather than later, but it is important to understand that most companies providing equipment financing do not specialize in medical equipment specifically. Generally, these lenders offer traditional equipment loans and those wishing to use them for medical equipment purchases must explicitly state this upon application. Therefore, it is imperative that you research all available options in order to determine which one offers the best terms and conditions for your needs. Remember, choosing the right loan can save you money and time in the end!
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