Diagnostic Equipment financing can be secured through different equipment loan and leasing programs.
As it stands to reason, any diagnostic equipment that is highly technology driven and that can quickly become obsolete will provide very little security value to a lender or equipment leasing company. Therefore, the decision making process for the equipment financing company is going to be more about the strength of the business cash flows, the credit rating of the borrower, and the personal guarantees or corporate guarantees that can be pledged. The stronger the overall financial package, the longer the loan or lease term that you can expect to secure.
Even for used diagnostic equipment, there could still be a financing rationale similar to the above, but potentially for a shorter period of time such as 24 to 26 months.
The key for financing used equipment will be the condition of the assets and the probability that not only will the technology be valid through out the lease or loan term but also that the equipment is likely to operate past the end of the term.
To secure commercial equipment financing for diagnostic equipment, you may also have to be prepared to put down a size able down payment depending on how well you meet or satisfy the other lending criteria.
Diagnostic equipment financing in the form of an equipment loan is more likely only available through a bank or institutional lender. This category of lender is typically low risk in nature, so you will have to have a very strong financial profile or be able to qualify through some of the government assisted and/or insured loan programs that are administered by the major banks.
While leasing companies can also provide “A” type lending rates and terms, leasing companies as a whole cover a much broader spectrum of credit and risk profiles. To qualify for credit for diagnostic equipment you may have to consider a higher rate of interest depending on your credit profile, but if you can minimize your down payment and get the repayment terms you’re looking for, it could still be worth the cost.
Regardless of your situation or requirements, the first step for understanding and securing equipment financing for your business is to give us a call so we can get all your questions answered right away and provide equipment financing options for your consideration.