Top 10 Medical Equipment Financing & Loan Options (2024 Reviews)

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Recently, the healthcare sector of the United States received over $500 million in grants to produce medical protective gear at an increased rate. It shows the rising popularity of medical equipment in the county. However, many health-related businesses find the cost of certain pieces of medical equipment out of their range. So, they can acquire financing for the much-needed medical equipment by contacting relevant lenders.

Types of Medical Equipment Available

To start, let’s look into who can use medical equipment loans. You may need this option if you happen to be:

• Hospitals and other large institutions in need of stuff like MRI machines or surgical robots
• Clinics and private practices, such as dental/chiropractic/specialty facilities
• Diagnostic centers that focus on imaging/laboratory services
• Health technology providers in need of advanced medical devices to support their research & development

You can acquire the following pieces of equipment with these financing options:

• Diagnostic Equipment: MRI and CT scanners, X-ray machines, EKG/EEG devices, ultrasound machines, etc.
• Surgical Instruments: Surgical tools, operating tables, surgical lights, and tools for specialized procedures
• DME: Durable Medical Equipment, such as beds, wheelchairs, mobility aids, bedpans, etc.
• Patient Monitoring Devices: Devices like heart monitors, blood pressure monitors, pulse oximeters, and other gadgets
• IT Hardware/Software: Computer systems, servers, software applications to support electronic health records (EHRs), etc.

Moreover, clinics or hospitals need pharmacy equipment like automated dispensing systems and transport equipment like stretchers.

Top 10 Best Medical Equipment Loans in the US

Did you know that the US medical equipment manufacturing market crossed the $250 billion mark in 2024? If you’re looking to make medical equipment purchases today, here are some options to consider:

1.   Swoop Funding

Swoop Funding specializes in providing tailored financing solutions to healthcare facilities in the United States for medical equipment, offering competitive rates and flexible terms to help healthcare providers acquire necessary technology without financial strain.

2.   Sharp Streak

Sharp Streak provides affordable financial solutions to struggling businesses. You can get dental and general medical equipment loans with this lender. However, they have extensive document requirements.

3.   Amerant Bank

This lender offers fixed-rate equipment loans to help your healthcare business grow. With a customized finance structure and True Leases, Amerant Bank lenders work exclusively with FL business owners operating in the wellness niche.

4.   Total Equipment Financing

This lender doesn’t specialize in medical equipment loans but offers financing solutions in many different niches. You can get a free financing quote in a few minutes.

5.   Byline Bank

This lender also offers you medical equipment loans. You can get access to various types of medical gadgets by working with the Byline Bank.

6.   Truist

This is a bank-owned medical equipment financing company focusing on bigger purchases, such as the ones in the ballpark of $1 million. Established in 1976, Truist boasts over 1,500 clients and 50k unique assets. This lender’s unique abilities include:

• Fair market value lease
• Left lead syndication
• $1 out capital lease
• Fixed/floating loan

7.   Rainstar Capital Group

This group can provide you with up to $250k in medical equipment financing. Though not a lender itself, they have multiple lenders in their network that can fund your medical device purchases. They need a list of paperwork from you, such as:

• Credit report
• Quote/invoice
• Signed application
• Equipment list (currently owned)
• 6 months of business bank statements

8.   US Trust Business Loans

Even though they have a pretty weird website, they offer you medical device financing up to half a million. Also, you get favorable approval rates, 60 months to repay the loan, interest rates starting at 8.75%, and same-day funding options available.

9.   GUD Capital

This lender provides quality medical equipment financing to US-based businesses. Based in LA, it’s a reliable lender that ensures fast approval to keep your business operations running.

10. Ascentium Capital

Ascentium has provided $12 billion in financing to different healthcare facilities. It offers very flexible financing options to US-based clinics. You can get up to $2 million from this lender & upgrade to the latest technology while still making payments. This way, Ascentium removes a major con of medical equipment financing, i.e., tech getting obsolete.

Types of Medical Equipment Financing Options

If you need financing for your medical equipment, here are your options besides loaning:

• Leasing: This hybrid approach combines leasing with the option of buying that device at the end of your lease term. So you can spread the cost of buying that medical gadget and ensure ownership.
• Temporary: You can also try short-term financing solutions. As quick funding options for medical equipment purchases, these solutions come with a higher interest rate. However, the approval process doesn’t take much time.
• Crowdfunding: It’s called peer-to-peer lending, in which different investors contribute small amounts toward a specific financial goal. The pros of this option are:
  • No need to rely on traditional credit checks
  • Potential for community support/engagement

Medical Equipment Loan: Are You Eligible?

We discussed the eligibility criteria for dental equipment financing in a previous blog. When it comes to loaning or leasing medical equipment, the same rule applies. So, here is how you can ensure whether you’re eligible to receive this loan or not:

Eligibility Criteria

• You must be a business owner in the healthcare sector
• The lender may require the borrowing healthcare practitioner to have at least 1 year of post-qualification experience.
• Some lenders can stipulate that the primary applicant has to be 25 to 65 years old at the time of loan maturity
• A score above 720 is generally appreciated when it comes to credit checks in health & medical equipment financing. Some companies, like Swoop, work with external lenders that can accept bad credit scores, or no credit check at all.
• You have to provide the following documents, too:
  • Income tax returns (ITRs)
  • Bank statements (6 to 12 months)

Application Process

• Start by looking into potential lenders and checking their reputation.
• Prepare your documentation, such as the following forms of paperwork:
  • WKYC documents (identity proof)
  • Financial statements or your tax returns
  • Business registration documents and licenses
  • Pro forma invoice for the equipment in question
• Like always, you’ll submit your application (mostly done online) and go through the vetting process (i.e., verification).
• After getting approval, you’ll get loan terms detailing stuff like:
  • Interest rates
  • Repayment schedules
  • Collateral requirements
• You’ll repay this amount in monthly installments over a set term; some lenders may even offer moratorium periods before the repayment period sets in.

Financing Medical Equipment: Pros and Cons

Choosing the Right Lender for Medical Equipment Financing

In 2022, the American Hospital Association (AHA) reported that the rising cost of medical equipment is taking a toll on the health sector and, ultimately, the patients are getting affected. That’s why you should be extra careful when choosing a lender to finance your medical device purchases. You should consider these factors:

• Their interest rates and terms & conditions
• The speed of the funding approval process
• Their customer service and how good it is
• Their reputation and history of financing such purchases
• Do they have any hidden fees?

If you need help understanding which medical equipment financing option is better for you, we provide amazing reviews of different lenders and their services.

Get in touch with us at Sophisticated Investor to learn more about your loan/leasing options in the United States. Take your healthcare company to new heights by purchasing or leasing the ideal medical equipment to take your clinic to new heights.

Medical Equipment Financing: FAQs

Q. What documents do I need to get medical equipment loans?

1. These  documents can be something like this:
   1. Equipment invoices/quotes
   1. Bank statements for the last 6 months
   1. Business financial statements (e.g., tax returns)
   1. Personal identification and business registration docs

Q. How long does the application process take?

1. The application process is normally very straightforward. You can finish it online, and it takes a few minutes. Some lenders will approve your application and provide funding in a matter of hours.

Q. Is it better to lease my medical equipment or try taking out a loan? Leasing involves lower monthly payments, unlike loaning, where monthly installments are higher. However, leasing doesn’t ensure ownership.