Why Medical Equipment Loan is Important for Your Medical Practice

The healthcare industry, like any other, needs technology to meet the changing needs of patients. From electronic patient records, advanced diagnostic equipment and patient monitoring systems to devices like diabetes and BP apparatus, technological infrastructure is a dominant factor that determines the quality of care offered to patients. As hospitals, clinics, and health centres vie to get an edge over competitors, the demand for advanced equipment has increased drastically. The ageing population and the increased penetration of healthcare in small towns and rural areas have further fuelled the demand for modern machines and the medical industry can feel the pressure to keep up with the demand.

However, it is the cost of advanced healthcare equipment that stands in the way. Even after stretching budgets, doctors and medical practitioners often find themselves cash-strapped to plan the capital influx required for technological upgrades. Hence, an increasing number of healthcare players are opting for a medical equipment loan these days, to finance the purchase of these machineries. The multiple benefits that such a loan can offer are:

Upgrade of equipment to provide quality patient care
Any medical equipment is not a one-time purchase. Any healthcare facility, be it a diagnostic centre, a path lab, a private clinic or a super specialty hospital, needs to upgrade or refurbish the equipment from time to time. The latest technological advancements quickly push old machines into obsolescence too. Hence, most medical equipment financing options offer you the flexibility to use the loan to upgrade or refurbish old equipment instead of buying a new one. Make sure you discuss all the provisions, terms and conditions before you opt for a suitable financing solution.

 

Attractive rates of interest
There are a number of financial institutions offering customized lending solutions to healthcare professionals and doctors at competitive rates. You can discuss your requirements and negotiate on the best solution as per your needs. Top lenders also provide customized lending solutions to health practitioners at the lowest rates possible, and often without collateral.

Your earnings can quickly offset the expenditure
Owing to the kind of costs associated with healthcare infrastructure, you would probably have to save for years before you can buy your necessary equipment on a piecemeal basis. However, thanks to medical equipment loans, you can now build a steady medical practice and earn steady revenue streams without incurring a significant capital expenditure. This way, you can easily manage to pay off the EMI amounts from your income. Additionally, these loans can also be used to replace or refurbish old equipment.

Can cover additional costs as well
Once you have purchased the machinery you need for your hospital or clinic, there will be other costs as well, like installation, manpower etc. The good news is that, the higher limit on loans under this scheme will have you covered for that. You can also use the loan to repair and refurbish old equipment.

Easy application and approval process
Most financial institutions offer medical equipment loans to doctors and other healthcare professionals to set up a health facility. With stiff competition, many lenders have simplified the lending process to attract more and more borrowers. The entire process has become quick and easy. Most lenders these days offer online application systems wherein you simply need to fill up a form, attach the documents needed, and submit. Your loan is approved within a few hours or within a day usually and money is disbursed directly to your bank account! You can apply for a loan with just a few clicks.

Flexible repayment terms
Most lenders value doctors as clients because they know that these professionals always have a steady stream of revenue no matter what, and therefore offer the best possible deals on medical equipment financing. From attractive rates of interest to flexible repayment terms, you get many advantages and face no hassle at all. Borrowers can also choose from multiple repayment modes like EMI, PDC, NACH and ECS, as per their convenience.

Conclusion

Finally, if you want to derive the best value from your medical practice in the long run, you have to seek a financing option that best suits your needs. Before you zero in on a medical equipment loan, make sure to discuss with your supplier, your financial advisor, your accountant etc. Choose the smart solution, negotiate on the rates, and secure credit that will stand you in good stead to accommodate the rapid growth that the healthcare sector promises.