Medical science has advanced at a rapid rate and a lot of things that were unimaginable even a few decades ago, are now very much possible with the help of modern medical science and its resources. There have been numerous life-changing breakthroughs in the field and for all of it, there’s one thing that is very essential: the right medical equipment. Doctors and medical health professionals need the right kind of medical equipment to offer the best treatment and care to patients. To acquire such types of equipment, medical equipment loan is a preferable option.
The demand for advanced medical equipment has significantly risen in the past few years. According to the reports published by Healthcare Market Insight: India in 2019, the medical device market had an estimated value of around $9 million and was projected to reach a total value of $14 million by the year 2025. That being said, such medical equipment are pretty expensive and amidst the current economic crisis, smaller hospitals and independent health clinics, as well as other doctors working on an individual basis may find it difficult to fund such purchases.
This is when the option of medical equipment financing can be just perfect.
What Is A Medical Equipment Loan?
Just as the name suggests, a medical equipment loan is a loan or financing option that is used to purchase medical equipment. When it comes to medical equipment, the needs of different hospitals or treatment facilities may differ, but such types of equipment are crucial to better healthcare services and the smooth operation of the treatment facility.
As these items are generally very expensive ranging from thousands to lakhs of rupees, medical facilities and professionals opt for medical equipment financing to purchase such loans. Having modern and advanced equipment at a treatment facility helps offer better medical care and also helps bring in more patients and increase the revenue.
The Different Types Of Medical Equipment For Which You Need Financing
There are a variety of medical equipment that any medical practice may need to offer seamless and better treatment services. Although there are some common and basic kinds of equipment for which you may need the option of medical equipment financing. Such kinds of equipment include the following:
- Hospital beds
- ECG machines
- Traction equipment
- Integrated diagnostic systems
- X-Ray machines
- Medical lights
- Mobility aids
- Ventilators
- Defibrillators
- Patient monitors
- Medical imaging
- Hospital stretchers
- ICU equipment
That being said, medical equipment financing is offered by a number of lenders at varying rates. Generally, the term for such loans can be anywhere between 1 year to 8 years.
The varying rates offered by different sources are as follows:
- Less than 2% for a dealer-enabled contract
- Between 6%-12% from a bank
- Anywhere between 2-20% from a medical equipment financing company
That being said, medical equipment financing does not generally involve any collaterals apart from the fact that the equipment purchased acts as the security for the loan. Although in case the borrower has a poor credit score, they may need collateral to get the loan approved. The practice also needs to be certified to get the loan approved.
Final Thoughts
In the end, it can be mentioned that medical equipment loans are the key to keeping up with the medical industry in modern times. Any practice that wants to grow and succeed needs to have modern and advanced medical equipment which improves their services as well as impression on customers. When choosing such a financing option, you must carefully look into the details of the loan terms and conditions and choose the lender with the best offer for your needs.
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