Every medical practitioner knows the importance of medical equipment to provide high-quality care. But keeping up with the latest technology is not always easy. You should be able to maintain your day-to-day practice while covering this significant expense. Besides how you will pay for it, you may be wondering how to evaluate whether the investment is worth it. You may be having a lot of questions as you navigate the process, and we have provided the answers to help you out.
It's a good idea to get pre-approved for financing before starting an equipment search. If you haven't already been pre-approved, you can look for financing options designed specifically for independent practices. For example, Poonawalla Fincorp offers medical equipment loan to medical practitioners and dentists.
With time as the equipment gets older, it requires more maintenance to keep working at standard performance levels. It takes time and money to regularly call-in maintenance specialists to do repairs. You can keep it running at optimum performance by investing in newer, more reliable equipment. Your time and money are worth much more than the hassle of regularly fixing old equipment.
Having the most up-to-date equipment can benefit your office in many ways, but only with proper use and training. Investing in training can ensure that given equipment is being used to its full potential, further increasing your return on investment.
Having the latest technology and medical equipment can set you apart from the rest of the medical practitioners and help you better diagnose and treat your patients. Upgrading older equipment can help make it a little more efficient.
If you want to increase income or attract new patients, you may want to consider adding new services to your office. Perhaps simply adding a new tool will enable you to demonstrate new capabilities that you would normally have referred to outside experts.
Bottom-line? The decision to buy the medical equipment, and expand or upgrade your office can be costly, but it may be just what you need to grow your practice. Choosing and timing your expenses based on your goals and with the right financing is the key to building a successful practice. So here are the 5 Frequently Asked Questions About Medical Equipment Loans
1. Where you can use it and what are its benefits?
As the name suggests, you can use this loan for all expenses related to your medical practice. These can range from leasing/purchase, repairs, and upgrades to installing and maintaining them.
The benefits that your business can get from a medical equipment loan include the following:
- This loan is collateral-free. This means you don't need to
mortgage business assets for money.
- Provides an
ideal solution for your practice and business, because cash flow is
not affected in the short run. An equipment loan helps the medical
practice tide over a short-term cash crunch and ensures that it
continues its operations with optimum efficiency.
- With minimum documentation requirements, easy eligibility, and a
flexible tenure, your medical practice can enjoy all benefits with a
nominal interest rate.
- It also helps increase the
net asset value of your business as more equipment are added to the
books.
- You can also use this loan for your laboratory. A Medical Equipment loan for laboratory helps you to buy or lease key equipment required in the laboratory and also fund its repair and maintenance.
2. Do I have to plan for collateral?
No collateral is required to be pledged for an equipment loan. It makes the application process hassle-free and convenient. This makes it easier and faster for you to apply, plus it takes less time for your lender to approve your application as it does not require any collateral to be assessed.
3. How do I qualify for this? And whether is it better to buy or lease the equipment
Eligibility Criteria for Individuals who are seeking Medical Equipment Loans:
- A person should have an MBBS/MDS/MD/MS degree with at
least one year of post-qualification experience
- Other medical qualifications can also avail of this loan,
provided they have three years of post-qualification
experience.
- The age limit of loan applicants is
usually between 25 and 65 years, though it may vary from one
lender to another.
- It is necessary that the
applicant should have a good credit history.
- Some lenders may require that you stay at your current address or that you practice at your current office for about 5 years.
If you are interested in owning the equipment outright, you can expect to pay out of pocket. But paying in cash can put a strain on daily operations. You may consider applying for a loan from a bank, which may also offer better interest rates and potentially save you money in the long run. A bank may also offer payment options not available in equipment leases, such as interest-only payments initially.
Leasing options are often considered for short-term costs, not for the pieces of equipment you want for a very long lifetime.
Alternatively, to brand new equipment, buying a refurbished one from a trusted provider is a way to get high-end equipment without breaking your wallet. Refurbished equipment can work almost like a testbed, proving that the equipment has been tested and proven to do its job.
4. What documents do I need to submit?
The list of the documents you will need to submit:
- Filled form and passport size photograph
- KYC documents
- Certificate of the existence of
business
- Bank account statement
5. How long does it take for the disbursement of money?
With a fast disbursement time, you can quickly secure finance for your practice and equipment. Now that you know more about medical equipment loan guidelines, it is time to check your business requirements and see how this loan can help you.
To get a medical equipment loan, you can either go through a traditional lender such as a bank or a new-age, digital-first lender such as Poonawalla Fincorp.
Conclusion
At the end of the day, the most important thing you can offer your patients is access to exceptional care, diagnosis, and treatment. Taking the right investment decisions for your practice can pay off tremendous dividends in the long run.
