What is medical equipment financing?
Medical equipment financing is business funding used to acquire eligible clinical, diagnostic, laboratory, imaging, surgical, or other healthcare equipment. Rather than paying the full cost upfront, an organization makes scheduled payments through an equipment loan or lease. Depending on the structure, financing may also include eligible project expenses such as installation, software integration, freight, commissioning, and training, preserving cash for operating needs.
What types of medical equipment can be financed?
Eligible equipment may include new or qualified used medical assets used by healthcare and medical organizations. The specific equipment, supplier, condition, project scope, and transaction structure are reviewed as part of underwriting. Commercial Funding Partners also supports multi-vendor projects, which can help when a single expansion involves equipment from several manufacturers or suppliers rather than one invoice.
How much can I finance for a medical equipment project?
Commercial Funding Partners structures equipment financing from $250,000 to $300 million per project. Larger institutional equipment funding begins at $5 million. The appropriate amount is based on the eligible equipment, related project costs, credit review, and the overall transaction structure. A project may include a single major acquisition or a broader multi-vendor equipment and integration initiative.
Can medical equipment financing cover installation and software?
Yes, eligible soft costs can be included within the overall financing structure when the transaction fits. These costs may include installation, engineering, software licenses and integration, freight, commissioning, training, project management, controls, automation integration, taxes, and certain construction-related expenses. Including these items can reduce the need to use working capital to complete an equipment project.
What is the difference between an equipment loan and lease?
An equipment loan generally finances the purchase of equipment with scheduled repayment terms. A lease provides use of the equipment under an agreed structure and may take forms such as capital, operating, tax, or FMV leasing. The right choice depends on the organization’s cash-flow objectives, planned equipment use, accounting and tax considerations, and desired end-of-term options.
Can you finance used medical equipment?
Commercial Funding Partners can finance qualified used equipment as well as new equipment. Eligibility is determined through a review of the asset, supplier, condition, remaining useful life, project economics, and borrower profile. Used equipment may be particularly valuable for organizations seeking to expand capacity or upgrade capabilities while managing the total capital required for the project.
How long does medical equipment financing take?
Timing varies with transaction size, equipment complexity, supplier requirements, and the information needed for underwriting and documentation. Commercial Funding Partners states that a structuring specialist responds within one business day for equipment financing inquiries. Projects involving progress payments, installation periods, multiple vendors, or complex soft costs may require a tailored funding schedule with milestone disbursements.
What if my equipment financing request was declined elsewhere?
CFP offers a free, no-obligation Second Opinion Review for equipment projects that were declined or received unfavorable terms elsewhere. The team re-underwrites the project and considers alternative approaches, including progress funding, sale-leaseback recapitalization, soft-cost inclusion, extended installation periods, and multi-vendor consolidation. A prior decline may reflect another lender’s policy limits rather than the project’s overall viability.