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Understanding Medical Equipment Financing
Medical Equipment Financing is a perfect solution for hospitals, labs, and clinics. With the ever-evolving advancements in medical technology, healthcare institutions often face the challenge of updating to the latest equipment to deliver the best outcomes for their patients and provide the best quality of service.
With this, medical equipment financing provides a viable and efficient pathway for hospitals, labs, and clinics to obtain the necessary equipment without incurring a substantial upfront cost. By partnering with financing companies or institutions specializing in medical equipment financing, healthcare facilities can provide the best equipment and devices to take their practice to the next level.
Medical equipment financing also offers several key benefits, which include:
- Managing cash flow
- Breaking upfront CapEx into multiple smaller manageable payments
- Better liquidity
- More control over expenditures
- Upgrading to the latest and best equipment
- Improving credit score and worthiness
Well, let's get into it!
What Is Medical Equipment Financing?
Medical equipment financing serves as funding for acquiring medical equipment and functions as a business loan tailored for hospitals and other healthcare institutions. Usually, a specific amount granted for financing is qualified upon the borrower's expertise, credit history, financial standing, as well as the projected profitability and cash flows resulting from the utilization of the medical equipment, which is underwritten.
Credit for medical equipment is catered explicitly to healthcare facilities and doctors. One can utilize a medical equipment loan to fund various equipment, such as hospital beds, CAT scan machines, X-ray machines, MRI machines, and other essential medical equipment. This also encompasses a wide range of instruments such as surgical instruments, optometry instruments, etc.
You must also note, that medical equipment financing usually requires you to give collateral as a form of security for the repayment of the loan and not to mention the tedious & unstructured repayment process.
However, this is where - Care.fi comes in, which we will tell you in just a bit
But first, How Does Medical Equipment Financing Work?
Now, when your hospital takes a loan, for getting hospital-related machines or equipment, to meet the requirements, you will have to make regular payments comprising both principal and interest throughout a predetermined duration.
Once the loan is fully repaid, you become the rightful owner of the equipment, but to ensure the loan's safety, the lender might ask for a lien on the equipment, serving as collateral for your debt. Moreover, if you fail to repay your credit amount, the lender may place a claim on certain business assets or ask for a personal guarantee, in such cases, your lender will have the right to seize your hospital’s assets and even your personal guarantee.
Although this process may look very simple, it's very tedious at the same time. Why?
Well, first comes a lot of documentation both for your business and your personal (including KYC, CIBIL Score, GST report, bank statement, etc.), followed by multiple visits by the lending party. Post that a hard limit is assigned, and by this time usually 7-10 days are gone. Then you are required to give all the payments on time, make sure you pay the interest as well, the PF fees, the platform fees, and this process takes anywhere between 15-30 days for a new account, and even with an existing account, at least 7 days. And even after all this, you might not qualify and get your funds approved.
But fret not! Care.Fi understands your pain points and so we offer a pre-approved limit within 48hrs, a customizable upper limit for cash, and disbursals within 24 hours, all this with minimal documentation.
Where Care.fi Comes into play?
Care.fi offers various financing solutions to support your hospital, clinic or lab in fulfilling its financial needs. Among the available options is Equipment Financing, which enables you to acquire the latest equipment and upgrade your technology, vital for the success of any healthcare venture.
Whether you are an established company or a growing startup in the healthcare industry, Care.fi provides medical equipment financing tailored to meet the unique requirements of each individual.
Our financing platform, CareCred, takes care of both the Supplier's and the Hospital’s credit needs, let’s see how?
The asset is loaned to the hospital
The loaned asset is under the hospital’s claim
Preserve the hospital’s liquidity and manage cash flow effectivelyWith CareCred, we assure providers and patients alike that our services will make a significant difference. By joining forces with us, you can expect a smoother workflow, allowing you to dedicate more time to the crucial aspect of patient care and well-being.
Conclusion
Although, Equipment Financing is a cost-efficient option for getting secured loans and getting all of your essential equipment for the sole purpose of seeking growth exponentially. But on the downside, purchasing the equipment outright is a more cost-effective approach compared to saving up for it gradually, not to mention failure to make timely payments can significantly harm your credit score and potentially lead to the hospital or clinic’s closure. So keep this in mind, loan payments can impede your cash flow until the loan is fully repaid.
Still have questions? Reach out to info@carefi.in and we’ll be in touch with you soon.💡