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Equipment Loans for Medical Businesses: What, When, How

equipment loans for medical businesses.jpgIn order to deliver an exemplary level of care and improve patient outcomes, medical businesses need access to the latest equipment and technologies on the market.

Unfortunately, medical equipment does not come cheap. With payroll, operating expenses, insurance premiums, taxes, and more to pay, many medical businesses simply don’t have enough cash on hand to procure the newest equipment on the market—which means patients may very well decide to look for a competing business that can meet their health needs.

If you’re the owner of a medical business, you can’t afford to risk the chance your patients start going to competing medical practices. Just because you may be low on cash doesn’t mean you can afford to kick the can down the road.

From time to time, owners of medical businesses may need to look to outside sources of financing in order to upgrade their equipment to provide better patient outcomes. While some folks might think they are best off going to the nearest bank to secure a medical equipment loan, traditional financial institutions are actually funding fewer and fewer small businesses in the wake of the 2007–2008 financial crisis.

Apply for a traditional small business loan at your own peril.

One of the easiest ways small businesses owners can get an equipment loan for their medical business is by applying for funding through a non-bank lender. Sensing a need in the market, a number of these alternative lenders emerged over the last several years in response to banks ceasing to lend as much money to small businesses.

What is a non-bank lender?

Non-bank lenders provide small business owners with unsecured business loans. This means that—unlike bank loans—small business owners don’t have to put up any collateral in order to gain access to the money they need to grow their operations.

For this reason, equipment loans from non-bank lenders understandably tend to have slightly higher interest rates than loans issued by banks, which are much harder to get approved for.

Whereas banks tend to lend money to businesses that have immaculate financials and near-perfect credit scores, non-bank lenders are willing to fund businesses that have subpar credit scores. You just need to be able to demonstrate you can generate revenue on a consistent basis.

When can I get an equipment loan?

While it may take a traditional bank anywhere from 60 to 90 days to fund a small business—assuming they’re approved, of course—non-bank lenders operate much faster.

Believe it or not, you can secure an equipment loan in as little as 24 hours. With money in the bank that quickly, you can start investing in new medical equipment right away.

How do I apply for a small business loan?

The process for applying for a medical equipment loan is quite easy; you can do it online and you should be able to complete it in 15 minutes or less.

You’ll just need to gather some documents and other information before you apply for a loan: general business information, ownership information, contact information, bank statements, and annual revenue estimates. Then you should hear a decision within 24 hours.

It’s really that simple.

There’s no sense in letting your medical business become less competitive as your equipment and technology get out of date. Instead of waiting for enough revenue to come in to cover new equipment costs—and therefore being unable to deliver a high-quality level of care—apply for a medical equipment loan today.

Not only will you have access to the cash you need to grow your business quickly, you won’t have to worry about scraping together money to afford new equipment. As a result, your mind will be clear and you’ll be able to focus on giving your patients the services they want and taking your business to the next level.

To learn more about how a medical equipment loan can help your medical business soar to new heights, read about some other ways you can invest the money.