One of the true equipment financing benefits of having a medical practice or medical office of some sort is the different financing options that are available to you to finance real estate, working capital, equipment, and leasehold improvements.
Yes, leasehold improvements are actually an item that can be financed in a number of different ways. While this type of asset has no real security value to a lender, there are still several different financing programs willing to finance leasehold improvements, especially those made by medical practitioners.
Not only are there a number of different sources to consider, but the rates and terms are also very good for medical leasehold financing. At the same time, some of these financing programs will also require that some amount of equipment financing be part of the capital request and will not consider an application for strictly leasehold improvements.
From a lending point of view, leaseholds can be financed under small business loan programs that are typically insured by the government, reducing the level of risk for both the borrower and the lender.
Medical leasehold improvements can also be financed by certain leasing companies that have a focus on medical equipment financing. There are insurance programs covering off this type of lending, but irregardless it is a growing part of the part for financing leaseholds as the view by most lenders is that medical offices are very low risk financing scenarios compared to the rest of the market at large.
For either a loan or leasing scenario, medical practices and medical offices can secure some of the best financing rates offered for this classification of asset. And with leverage ratios at or above 90%, this is a very scalable form of capital, especially if the business is looking to expand with other offices and locations.
With a little bit of market knowledge, a borrower can secure some very good financing in terms of rates and terms. The key is to understand the best financing sources to work with for your particular situation.
If you have a medical leasehold improvement financing need, I suggest you give us a call so we can quickly assess your requirements and provide relevant options for your consideration.