What is Medical Equipment Finance?
For companies in the healthcare sector, maintaining cutting-edge, high-quality equipment is crucial to success. It’s also a significant outlay. Medical equipment finance allows you to purchase, lease and upgrade your healthcare equipment without putting undue budgetary pressure on your clinic, surgery or private hospital.
How Does Medical Equipment Finance Work?
Here’s a quick overview:
Term and Repayment:
Healthcare equipment finance plans involve fixed repayments over a long period, typically up to five years. These payments include both interest and VAT, and they are not subject to inflation or interest increases. While you may be able to pay off the balance early if you wish, lenders will often impose a penalty for this.
Lender Requirements:
In addition to credit and security checks, lenders will want to see proof of your business’s finances. They may ask for a few years’ worth of accounts and income statements, a balance sheet, a cash flow forecast and any major customer agreements.
What are my healthcare equipment financing options?
If you’re looking to acquire new medical equipment, there are three main options for financing:
Hire Purchase:
In a Hire Purchase agreement, the lender buys the equipment and you pay back the cost with interest over time. Once your monthly repayments are all made, the equipment is yours – usually in return for a small fee.
Operating Lease:
An Operating Lease involves affordable payments based on the predicted residual value of the medical equipment. The lender recoups the remaining cost at the end of the agreement by selling on the assets. At this point, you can end the lease, rent replacement equipment, or upgrade to a different model.
Finance Lease:
A Finance Lease also means that the lender buys the equipment. In this case, you make monthly payments for the right to maintain and use it. Once the lease term ends, you can choose whether to extend the lease, return the equipment, or sell it on and keep a percentage of the proceeds.
If you already have significant equity tied up in valuable equipment, you may be able to refinance it to release some cash. Effectively, you sell your assets to a lender and then lease them back.
What kind of medical equipment is eligible for financing?
Medical equipment financing is suitable for independently owned hospitals, GP surgeries and specialist clinics as well as veterinary and dental practices, pharmacies and opticians, and care homes. You will find several specialist lenders who understand the healthcare sector and offer repayment plans to fit your cash flow and budget.
You can fund a wide range of medical equipment, including:
Medical lasers and imaging equipment
Surgical instruments
Smoke evacuation systems and decontamination equipment
Specialist beds, dentist’s chairs, and tables
IT infrastructure
Diagnostic equipment
Anaesthesia equipment
Equipment can be purchased new, used, or at auction.
Speak to a Medical Finance Specialist
We work with healthcare providers across the UK to arrange tailored funding for essential medical equipment.
Contact our team to discuss structured finance solutions designed to support long-term growth and patient care.