Understanding healthcare and medical equipment finance
The private healthcare industry is a huge contributor to the UK economy, with the market size reaching an estimated £11 billion last year.
For healthcare business owners, equipment represents a major investment. It’s also an industry where technological advancements are happening all the time. As patients expect the most up-to-date care, healthcare providers must upgrade their machinery on a regular basis. It’s an enormous financial pressure, requiring significant working capital. Fortunately, there are options available. In this article, we highlight the different finance solutions available for leasing, buying and maintaining health and medical equipment.
Healthcare & Medical Business Loans
Business Loans provide a lump-sum payment, which companies can use however they see fit. This offers simplicity, with fixed-rated repayments, but also a lot of flexibility, as the money can be used to cover a wide range of needs, including buying, repairing, or upgrading expensive healthcare and medical equipment.
Healthcare & Medical Equipment & Machinery Finance
Equipment Finance along with Plant and Machinery Finance are sometimes referred to simply as ‘asset finance’, covering operating lease, hire purchase agreements and finance lease. The advantage of this type of finance is that companies can get the essential, and often expensive, equipment they need without a large upfront investment, spreading costs into manageable monthly repayments.
Below, we’ve listed some examples of the types of equipment that you can buy:
GP surgeries: Blood pressure monitors, electrocardiogram machines and scales.
Optician practices: Phoropters, slit lamps and autorefractors.
Pharmacies: Refrigerators, freezers and pill counters.
Dental practices: Dental drills, dental x-ray machines and dental suction tools.
Veterinary clinics: Ultrasound machines, vet x-ray systems and autoclaves.
Care homes: Adjustable beds, IV pumps and oxygen concentrators.
Physiotherapy clinics: Gait analysis systems, electric massage tables and hydrotherapy pools.
Cosmetic surgeries: Surgical microscopes, anaesthesia machines and surgical headlights.
As you can see from the diverse examples, you can fund virtually any type of asset that has a health or medical use – and the finance also covers installation and software costs.
In fact, what you buy doesn’t have to be limited to healthcare and medical equipment. Office furniture, retail equipment such as checkout tills, computers and any other type of asset can be acquired. You can even use the finance to pay for non-tangible assets such as websites and branding.
Healthcare & Medical Vehicle Finance
You can use Commercial Vehicle Finance for a range of vehicles like ambulances, minibuses, company cars, vans, etc. It’s flexible enough to tailor for the specific needs of the healthcare sector, such as converting a transport vehicle so that it’s wheelchair accessibleor adding refrigerators to a van.
Healthcare & Medical Equipment Refinance
In the healthcare sector, expensive specialist equipment can tie up significant capital. If your business already has a wealth of assets, but you’re looking to unlock finance for investment and growth, healthcare providers are able to refinance their equipment and machinery, including vehicles.
You’ll typically receive up to 80% of your asset’s value upfront, while retaining full ownership and continued use of the equipment.
Healthcare & Medical Fitout Finance
Whether you’re refitting your current premises or relocating to a new one, Fitout Financeprovides the funds for every part of your renovation, from construction and installation to equipment and furnishings. Again, any equipment funded can be used for rudimentary office kit, specialised medical machinery or any other asset that you need for your business. It can even be used for fixed assets like HVAC, electrical signage or an intercom system.
Healthcare & Medical New Start Finance
Healthcare is an exciting industry for startups and new businesses, whether providing services to customers or developing the next breakthrough as a HealthTech pioneer.
For those entrepreneurs who also have a vision but need some financial support to get them going, our New Start Finance product has been created to specifically help new businesses get up and running. The package provides working capital and funds for fitout works and equipment purchases.
Healthcare & Medical Franchise Finance
Several big-name healthcare providers offer franchise opportunities, such as Boots Opticians and Bluebird Care, or similar joint venture partnerships, like Specsavers and Vision Express. Franchise Finance available to support those who are looking to take advantage of such opportunities, covering the entire franchise costs, including equipment purchases.
How can Origin Finance help?
The team at Origin Finance have been helping healthcare and medical providers, including pharmacies, for many years. Our specialised finance and Professional Loans service has been tailored to meet the industry’s specific needs, helping small businesses access finance to enable them to grow.
With our deep understanding of healthcare financing, we can connect you with the right lenders, saving you time and hassle. Our expertise comes at no cost to you, as we’re remunerated directly by the lender.
Get in touch for a free no-obligation quote today.
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