A Complete Guide on Medical Equipment Financing

Why should you take a Medical Equipment Loan?

The latest and most advanced medical equipment is very expensive and the costs can often be prohibitive. Dipping into personal finances to pay for such equipment is simply not feasible. In addition, delaying in upgrading medical facilities can negatively affect your business.

Because of these reasons, financial institutions offer doctors and medical establishments the facility of medical equipment loans. Other benefits of taking a medical equipment loan are as follows:

Highly Customised Loan

Medical equipment loan is a highly customisable loan product. The loans availed under this option are customised according to the specific needs of doctors and as per the type of medical equipment in question.

Does not block your Working Capital

Adequate working capital ensures business continuity and helps to meet business financial obligations promptly. A medical equipment loan makes sure that you do not block your working capital and continue to execute your day-to-day processes effectively even when you need funds to purchase new devices.

Ensures Liquidity during Emergencies

It is not wise to engage all your capital in a single purchase, as it reduces your capability to effectively deal with emergency situations. If your funds are tied up in the purchase of a single device or facility, you may not be able to pay for emergency repairs or for damage to other assets caused due to natural calamities.

All such expenses require massive spending and a lack of financial resources may delay your operations.

What are the Advantages of a Medical Equipment Loan?

Medical advancements have benefitted all of us and helped us experience a better quality of life with increased life expectancy. Moreover, financial institutions have played a major role in making these technological advancements available to the general public.

An important tool in making new technology and treatments accessible for the common man is the medical equipment loan. This product ensures that doctors can afford the latest equipment and provide the best possible healthcare facilities. Some of its features include:

Low-Interest Rates

Almost all financial institutions have very competitive pricing on medical equipment financing. For example, the interest rate on medical equipment loan from Hero FinCorp starts as low as 11%.

High Loan Amount

Since medical equipment with superior technology can get extremely expensive, medical equipment loans come with a high upper limit. In most cases, financial institutions offer a loan up to Rs 2 crore for individual borrowers and even more for non-individual entities.

Easy Application and Approval Process

Getting a medical equipment loan is very easy and quick. Since most of the application process can be completed online, applying for a loan is very convenient.

The loan applications are considered on the basis of medical qualifications and experience of the individual, therefore the approval process is rather easy. Also, the funds are disbursed very quickly. However, for a higher loan amount, the lender might take a longer time to approve the application and release funds.

Frequently Asked Questions

What is the eligibility criteria to get a Medical Equipment Loan?

Obtaining a medical equipment loan is quite easy and simple. The person or entity should be directly associated with the business of providing medical services. And, should have a profitable business model with significant experience.

Let's look at the eligibility criteria for a medical equipment loan from Hero FinCorp.

• Should be a public, private, partnership, trust, society or an individual doctor

• 5 years of experience in providing medical services and a minimum of 3 years’ experience in the current business

• Should be a profitable business and as per industry standard

• Satisfactory credit and financial history

What is the documentation required to get a Medical Equipment Loan?

With Hero FinCorp, the applicant needs to submit the following documents to get a medical equipment loan.

• Audited financial statements and projections of the last 3 years

• Bank statement of last 6 months for individuals

• Copy of Memorandum of Association (MOA) for Pvt. Ltd. Company or Copy of Partnership Deed for a partnership firm

• KYC documents

• Details relating to the funding requirement or medical equipment details

• Other documents as per funding needs

How to apply for a Medical Equipment Loan?

Hero FinCorp follows an online-based application process for its loan related application process. You need to fill out an online form with your basic details and select medical equipment financing in the product field. Following successful submission, an executive from the company will contact you to guide you through the rest of the process.

Conclusion

The progress that medical science has made in the last few decades is remarkable. With new treatments being developed every day, the only thing left is to make them accessible to the general public. While costs are prohibitive not just for the end-users (patients), but even for the medical professionals like doctors, products like the medical equipment loan are facilitating the process without much financial strain.