The healthcare industry is facing a number of challenges in the post-pandemic era, including rising costs and slim operating margins. Trends predicted include investment and consolidation in digital health, adoption of artificial intelligence and improving cybersecurity. It’s also expected that providers will trim unnecessary expenses and focus on strategic labor investments.
One area where healthcare providers must continue to invest to remain innovative and offer the highest level of patient care is medical equipment and technology. This is true whether the focus is hospitals, surgery centers, private practices, healthcare systems, dental offices or veterinary offices. In instances where cash upfront is not available, equipment financing for healthcare companies is an excellent option.
Top Considerations Before Applying for Equipment Financing
The most important consideration to be made by any healthcare provider considering equipment financing is determining what type of equipment will “pay for itself” in the shortest time frame. There are certain must-haves for any practice and then there are those items that are nice-to-have if it makes sense from a fiscal and usage perspective.
Why Equipment Financing Works Well for Healthcare Companies
Equipment financing works well for healthcare companies because it provides a means for them to provide new innovations for patients, maintain compliance, lead the way in patient care and manage records efficiently and electronically. Whether upgrading existing equipment or purchasing new equipment, having the chance to start using it without the need for a significant cash outlay is just smart business.
Also important is the fact that all types of medical equipment can be purchased using equipment financing, including:
- Diagnostic equipment
- Medical records equipment
- Dental equipment
- Physical therapy machines
- Chiropractic equipment
- Imaging equipment
- Wheelchairs and other patient care equipment
What Other Business Loans May Healthcare Companies Want to Consider
While equipment financing has plenty of benefits, there are other business loans that may be right for healthcare companies, including:
- Traditional term loans—A lump sum of capital that is paid back with regular installments at a fixed interest rate
- Working capital loans—A loan that can assist with the daily costs of operating the company
- SBA loans—The hardest type of loan for which to qualify, providing cash to expand a company, increase or replace inventory, advertise, consolidate debt and even pay taxes
The Bottom Line
Operating a healthcare company can be very lucrative since the demand for healthcare services is not likely to wane but increase as the population ages. To be successful, however, means you need to be part practitioner and part businessperson, making smart decisions about growth as time goes on. Not having funds on hand to ensure you have the latest equipment should never be a reason to stagnate. There are plenty of options available to secure the funding you need to ensure your healthcare company remains “in the pink.”
Clear Skies Capital has helped many healthcare companies determine the business loan that’s best for them and get the financing they need in a timely fashion. Contact us today at 800-230-9822 to discuss your company’s needs.