Finance your Medical
Practice Equipment!

Setting up a proficient private medical facility, or ensuring the continued success of more established premises, will rely on the quality of services offered to patrons. Having access to the right medical equipment can make or break the accomplishment of a facility, and investment can often be the biggest hurdle for practitioners to face. Asset finance is a fantastic option for those looking for financial support. As healthcare facilities often make use of specialised equipment, they can really benefit from the financing options made available by more specific equipment finance options.

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    Published Date 06/12/2021 by Dana Boyd

    How Can Medical Equipment Finance Help?

    Medical diagnostic equipment is a key component for many medical facilities, but having access to even the simplest of these machines can signify a hefty outlay. When state-of-the-art appliances are a must, it can be all but impossible to accumulate the necessary funds needed to make these kinds of purchases – and this is where equipment financing may help.

    Making use of this type of financing can help health facilities to gain access to the all important equipment that they need, but may otherwise be unable to afford. Equipment such as:

    • MRI (Magnetic Resonance Imaging) equipment
    • X-Ray machines
    • CT Scanners
    • Ultrasound equipment
    • Cardiovascular equipment
    • Nuclear Medicine PET

    As these items can be incredibly expensive for facilities of all grades, shapes and sizes, the ability to pay off in smaller installments can make a huge difference to the progress of the overall institution.

    All appliances and pieces of equipment can act as the security for the loan too, so there will be no additional collateral requirements to be considered when taking out an equipment loan.

    Why Choose Specific Equipment Finance?

    Medical equipment finance is designed to give you access to the funds you need to purchase essential specialised equipment for your business. For a medical business to grow equipment finance gives you access to whatever important business equipment you need without having to pay for it upfront.

    In many instances business loans are unsuitable, as they often require specific collateral assets to support the loan. On the other hand, medical equipment financing loans can allow for up to 100% funding of the asset purchase price using the asset as sole security. Loans can be tailored to suit your business needs with usual loan terms of up to 7 years with balloon options at the end of the term; meaning lower monthly payments.

    What is the alternative to equipment finance?

    An alternative method of acquiring medical equipment can be through a lease arrangement such as a hire purchase or finance lease. A hire purchase is where a financier purchases an asset on your behalf and then you buy it off them in installments. Under this arrangement, the financier owns the asset until you have paid it off and ownership transfers to you. The other method of finance is a finance lease which involves a lender purchasing the asset you want and then renting it out to a business for an agreed period. You can choose from flexible repayment terms to match your budget, while the rental payments you make are usually tax deductible.

    Ultimately, the decision to purchase or lease equipment will depend on your own situation including your business income and expenses, of which we recommend discussing with your accountant.


    Advanced medical diagnostic equipment is a necessity for any medical business to be able to provide their patients with the best care possible. Even purchasing basic medical equipment, however, can require significant funds. This is why many medical businesses turn to finance options for their medical equipment needs.


    Getting finance to purchase medical equipment means that you don’t need to pay for it upfront. You can receive the purchase price funds required from a lender and pay it back over a specified period while having use of the equipment for your business.


    It is a convenient way to finance medical equipment without having to make a large capital outlay that could impact your cash flow or balance sheet.

    The main benefit of financing the purchase of medical equipment is that you can invest in your business without tying up capital or impacting your cash flow. It means you can acquire the equipment without having to provide the funds yourself and then repay them over time. This helps to avoid the risks of having such a large capital expenditure on your balance sheet.


    Both large and small businesses use equipment financing as a way to make large capital expenditures while managing their cash flow and the company’s balance sheet. It allows you to acquire medical equipment for your business whilst also avoiding the uncertainties that are associated with large capital expenditures.

    There are four main types of loans available for medical equipment financing:


    • Finance Lease. In this type of financing the medical equipment is owned by you (the lessee) and is not on your balance sheet. Payments made in full for its financing are tax-deductible. At the end of the finance term, the medical equipment is returned to the finance provider (the lessor) or purchased by you for an agreed price.
    • Operating Lease. In this type of financing the medical equipment is owned by the lessor and is not on your balance sheet. Payments made in full for its financing are tax-deductible. At the end of the finance term, the medical equipment can be returned to the lessor or purchased by you for an agreed price.
    • Commercial Hire Purchase. In this type of financing the medical equipment is owned by you and is categorised as on your balance sheet. In this type of financing, only the interest portion of your payments is tax-deductible but you can claim depreciation costs for the medical equipment. At the end of the finance term you own the medical equipment (although in some cases a final, residual payment may be required).
    • Chattel Mortgage. This type of financing is like a traditional secured loan where the medical equipment acts as security for the loan. Like the previous financing method, the medical equipment is owned by you, the interest component is tax-deductible and you can claim for depreciation costs. At the end of the finance term, you own the medical equipment outright.


    The type of financing you choose for your medical equipment will depend on your specific business needs including the tax implications of payments and depreciation costs, whether you want it on your balance sheet and whether you want to have ownership of the medical equipment the end of the finance term (and whether you have to make an additional payment).

    Applying for a loan to finance the purchase of your medical equipment couldn’t be easier. Simply complete the form at and a broker will be in touch with you to discuss your medical equipment finance needs.

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