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Medical Equipment Financing

Medical Equipment Financing

Imaging, treatment, surgical, and practice management equipment for physicians, clinics, hospitals, and specialty practices.

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Founder & Editor · Expertise: Equipment financing, Lender matching, Loan and lease structure
Last reviewed
Methodology
Sources: partner-lender program data + industry research Editorial standards: methodology Disclosures: advertising + lender relationships
$25K-$3M+
Funding range
small device to imaging suite
7%-12%
Typical APR
established practices
60-120mo
Term length
matched to useful life
E
Reviewed by Ed Stapleton Jr. · Founder & Editor

Medical equipment financing covers loans, leases, and equipment finance agreements (EFAs) for businesses purchasing equipment in the medical category. We finance new and used equipment across all major brands, with rate ranges driven by credit tier, asset price, and equipment type.

What we cover in Medical

This category includes 38 equipment types, representing about 138,720 monthly searches. Common items include Sleep Lab Equipment, DEXA Scanners, Surgical Tables/Beds, Arthroscopy Systems, Hospital Beds (ICU/Specialty).

Asset prices in this category range from $22,000 to $195,000+, depending on the specific equipment, age, and configuration. We finance new equipment up to 100% of cost (excellent credit) and used equipment up to 80% of appraised value, with terms matched to the equipment’s useful life.

Typical financing structure for medical equipment

Credit tier APR range Term Down payment
Excellent (720+) 6.9-9.9% 60-84 mo 0-10%
Good (680-719) 9.9-13.9% 48-72 mo 5-15%
Fair (640-679) 13.9-17.9% 36-60 mo 10-20%
Challenged (below 640) 17.9-24.9% 24-48 mo 15-30%

Rate ranges as of May 2026, blended across our partner-lender network. Your actual rate depends on credit, equipment, term, and lender. See methodology.

How medical equipment financing works

  1. Apply for soft-pull pre-qualification. Tell us what you’re buying, asset price, business basics, credit profile.
  2. Get matched to a partner lender that specializes in medical equipment and your credit tier.
  3. Receive an indicative quote with rate, term, and structure within hours.
  4. Move to full underwriting if you accept the quote. Hard pull, financials review, equipment verification.
  5. Sign and fund. Most medical deals fund within 1-7 business days.

Common questions about medical equipment financing

Can I finance used medical equipment?

Yes. Most lenders finance used equipment up to 10-15 years old at maturity, with 80-90% LTV based on appraised value. Sometimes a third-party inspection is required for deals over $25K.

What credit score do I need?

Excellent rates require 720+ FICO. Sub-prime equipment lenders accept down to 580 with compensating factors (revenue, down payment, time in business). See our credit tier guide.

Does medical equipment qualify for Section 179?

Almost all business equipment qualifies for Section 179 deduction up to $1.22M (2026 cap). Financed equipment qualifies in the year placed in service. See our Section 179 guide.

How long does approval take?

Small-ticket equipment (under $50K) funds in 1-3 business days. Mid-ticket ($50K-$500K) in 3-7 days. Large-ticket ($500K+) in 1-3 weeks.

Case study
Outpatient imaging center finances $980K MRI scanner

6-year-old outpatient center expanding to second location. CPA-prepared financials, $8.2M annual revenue, ownership creditworthiness strong. Closed with GE Healthcare Financial Services at 7.4% APR, 84-month term, 5% down. Includes 5-year service contract bundled into financing.

$980K MRI cost
7.4% APR
84 mo Term
5% Down payment

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Browse all Medical equipment

44 equipment types in this category. Each links to a dedicated financing page with rates, terms, and lender notes.

What to know about financing medical equipment

Medical equipment finance is a specialty within the specialty. The assets are expensive, the buyers are clinically credentialed and often financially solid, the manufacturer relationships matter as much as the lender relationships, and the service contracts attached to the equipment can cost as much annually as the original loan payment. Our partner lender network for medical equipment is narrower than for construction or trucking, but the lenders we work with here are deeply specialized.

The dominant question on medical equipment finance is not rate. It is total cost of ownership over the contract life. A diagnostic imaging system priced at $1.4M new might carry a service and software-maintenance contract of $180K-240K per year. That recurring spend often outsizes the financing payment. Structuring the deal correctly means addressing both at the same time rather than treating financing and service as separate purchases.

The other distinguishing feature: medical equipment is often part of a credentialed practice. Lenders look at the practice’s payer mix (commercial, Medicare, Medicaid), reimbursement schedules for the procedures the equipment supports, and the credentialing status of the principals. This is true even when the underlying credit looks strong, because the cash-flow analysis on a medical practice runs through the payer mix.

Rate ranges we have seen on medical financing

Pulled from the deals our partner lenders quoted us in the last 12 months. Your actual rate depends on credit, time in business, equipment year/hours, and structure. Treat these as starting reference points, not quotes.

Credit profile 36-month term 48-month term 60-month term Typical down
Established practice 5+ yr, 720+ 6.8 - 8.0% 7.0 - 8.4% 7.4 - 8.9% 0%
Established practice 2-4 yr 7.6 - 9.0% 7.9 - 9.5% 8.3 - 10.0% 0 - 5%
New practice, principals 700+ 8.5 - 10.5% 8.9 - 11.0% 9.3 - 11.6% 5 - 15%
Imaging center or specialty group 7.2 - 9.0% 7.5 - 9.5% 7.9 - 10.0% 0 - 10%
Credit challenged or restart 11% + Limited Rare 15 - 25%

Used or refurbished medical equipment often qualifies for similar rates as new at the manufacturer-authorized refurbisher level. Gray-market refurbished units (non-authorized) carry materially higher rates and shorter terms.

Three deals we routed in the last quarter

Each scenario below is a real structure from our partner lender network, with identifying details removed. The borrower-profile, equipment, and structure are accurate; the price points are within five percent of actual.

Scenario 1

Multi-specialty group upgrades MRI

Borrower
12-yr practice, 4 principals 740+ FICO each, $8.2M revenue
Equipment
GE SIGNA Premier 3T MRI, $1.85M new, includes 5-yr service
Structure
84-month TRAC lease, 0% down, 15% residual
Payment
$22,400/mo with service bundled, $277,500 residual

Outcome: Funded direct from manufacturer financing arm at sub-bank rates. Service contract embedded in lease payment reduced accounting complexity.

Scenario 2

Independent OB/GYN buys ultrasound system

Borrower
6-yr solo practice, 730 FICO, $1.2M revenue
Equipment
GE Voluson E10, $185,000 with full transducer set
Structure
60-month EFA, 0% down, $1 buyout
Payment
$3,720/mo, 7.9% APR equivalent

Outcome: Approved through specialty medical lender within 5 business days. Lender included a 6-month payment deferral option that the practice declined.

Scenario 3

New imaging center launches with CT scanner

Borrower
Pre-revenue, 2 principals 750+ FICO with prior practice ownership
Equipment
Canon Aquilion Prime SP 80-slice, $625,000 refurbished authorized
Structure
72-month loan, 10% down, principal PGs
Payment
$9,950/mo, 9.2% APR

Outcome: Approved as pre-revenue startup based on principal credit and prior imaging center exit. Required signed payer credentialing contracts before funding.

Lender programs in our partner network for medical

The programs below describe the buckets our partner lender network underwrites for this equipment. We route every application to the program that fits the credit profile, time in business, and structure preference. The program assignment is the single biggest driver of rate, term, and approval speed.

Established practice program

Bank-rate pricing for practices with 3+ years of operating history, profitable financials, and prime principal credit. App-only paths available for smaller-ticket diagnostic equipment under $500K.

  • Min credit: 700
  • Min time in business: 36 months
  • Typical advance: 100% new, 90% on authorized refurbished
  • Best for: Established multi-specialty practices, prime credit

Specialty medical program

Deep program grid covering imaging centers, dental DSOs, and specialty groups. Underwrites payer mix and credentialing status as part of the file review. Strong on refurbished diagnostic equipment.

  • Min credit: 660
  • Min time in business: 12 months
  • Typical advance: 100% on authorized refurbished and new, 85% on gray-market
  • Best for: Specialty practices, imaging centers, dental DSOs

New practice startup program

Pre-revenue and startup-friendly underwriting based on principal credit and prior practice ownership. Larger down payment required, but a real path for new imaging centers and specialty launches.

  • Min credit: 700
  • Min time in business: 0 months (principal experience verified)
  • Typical advance: 85-90% with signed payer credentialing
  • Best for: New imaging centers, specialty group launches, principals with prior practice exits

Manufacturer captive financing

Direct from OEM finance arms when buying that manufacturer's equipment. Most competitive rates when bundled with multi-year service contracts. Often sub-bank pricing for qualifying practices.

  • Min credit: 660
  • Min time in business: 24 months
  • Typical advance: 100% new with service bundle
  • Best for: Equipment from major imaging OEMs, service-bundled lease structures

What an underwriter will ask about medical

These are the questions we hear our partner lenders ask on every medical application. Preparing answers in advance closes the deal one to three business days faster.

  1. Practice payer mix percentages? Commercial vs Medicare vs Medicaid mix drives the cash-flow analysis. Heavy Medicaid concentration is priced for risk.
  2. Principal credentialing status with major payers? Equipment is only revenue-generating if the principals are credentialed to bill procedures it supports. Pending credentialing delays revenue start.
  3. Service contract terms and bundled cost? Annual service cost on imaging equipment often exceeds the loan payment. Lenders want to see the full burden.
  4. Is the equipment authorized refurbished or gray-market? Authorized refurbished carries manufacturer warranty and OEM service eligibility. Gray-market does not, which affects both collateral value and operational risk.
  5. Real estate: own, lease, or shared? Imaging equipment requires shielding and infrastructure. Lease termination or shared-space changes affect the equipment's operational life.
  6. Patient volume projections vs equipment capacity? Lenders want to see realistic utilization. Over-projection signals weak demand analysis.

Issues specific to medical deals

These are not the standard equipment-finance pitfalls. They are the patterns we see on this exact equipment, in this exact market, that buyers without recent experience tend to miss.

Service contract not bundled, surprises year two

Buyers focus on the equipment purchase price and underweight the service contract. A $1M imaging unit may carry $150K-200K annual service, often free in year one then full price after. Practices that did not budget for year-two service costs end up renegotiating the contract under pressure or operating without OEM service, which can void warranties and resale value.

Gray-market refurbished equipment, no OEM service eligibility

Cost-saving buyers source refurbished equipment from non-authorized refurbishers, often saving 30-40 percent. The trade-off is that the OEM will not service or upgrade the equipment, software updates are unavailable, and resale value drops sharply. Confirm authorized vs gray-market status before signing.

Building infrastructure not ready at delivery

Imaging equipment requires specific power, cooling, shielding, and floor-load infrastructure. We have seen $800K MRI units sit uncommissioned for 3-6 months because the building work was not done. The loan begins amortizing on the placed-in-service date, which is often interpreted as the delivery date, not the commissioning date.

Credentialing lag delays revenue start

New practice equipment loans assume the principals are credentialed with major payers when the equipment arrives. Credentialing takes 90-180 days in many specialties. Equipment financed and delivered before credentialing completes generates no billable revenue, which can stress cash flow severely.

Documents the vendor must produce on medical

Lenders fund off documents, not promises. The items below are the ones we have seen hold up funding on medical deals. Confirm each is in hand before signing.

  • OEM authorization status (new or authorized refurbished). Required for warranty eligibility and resale value. Gray-market sellers will not always disclose this clearly.
  • Service contract terms in writing. Year-one inclusion, year-two cost, hourly call-out rates, and parts coverage all documented before purchase.
  • Software license and update entitlements. Many modalities (MRI, CT, US) have software subscriptions separate from hardware. Confirm what is included.
  • Installation and commissioning scope. Vendor responsibility for shielding, power, cooling, and site prep clearly defined. Often a separate contract.
  • FDA 510(k) clearance documentation. Confirms the equipment is cleared for the intended clinical use. Particularly important for refurbished units.
  • Operator training included or quoted. Operator certification often required by payers. Training cost can be $5K-25K per operator depending on modality.

Resale and depreciation on medical

Medical equipment depreciation curves vary widely by modality. Diagnostic imaging (MRI, CT, PET) holds value well in years one through five because of strong international export demand and the multi-year clinical lifespan. Therapeutic equipment (linear accelerators for radiation oncology, robotic surgical systems) depreciates faster because next-generation upgrades are clinically significant.

The secondary market for medical equipment is split between authorized refurbishers (Block Imaging, Atlantis Worldwide, OEM-direct programs) and gray-market resellers. Authorized refurbished units sell at 60-75 percent of new at year five and retain OEM service eligibility. Gray-market units sell at 40-55 percent of new and typically require third-party service contracts at higher cost.

Brand resale ranking: Siemens, GE, and Philips dominate the major imaging modalities and hold residuals strongest. Canon Medical (formerly Toshiba) tracks behind on resale despite strong clinical reviews. Carestream and Hologic hold value well in their specialty niches (X-ray, mammography respectively).

Typical retained value
Year 1
82%
Year 3
65%
Year 5
48%
Year 7
32%

Who finances medical equipment

Buyers shopping medical financing come from a few distinct backgrounds. The four profiles below cover most of what we see. Lender match, structure, and pricing all shift across profiles even when the equipment is identical.

The acquisition buyer

A business buying an existing operation that includes equipment. Some lenders treat this as a business loan, others as straight equipment financing. The split matters for both rate and what documents the lender will ask for.

The relocation buyer

A business moving operations to a new state or region and replacing equipment that does not move efficiently. Lenders see this fairly often in field services and construction. The application looks clean as long as the business operation continuity is documented.

The seasonal operator

A business with revenue that concentrates in certain months. Lenders price this risk by either requesting larger down payments, asking for proof of working capital reserves, or structuring seasonal payment skips that match the revenue pattern.

The grant-leveraged buyer

A business with a grant award, set-aside, or rebate that covers part of the equipment cost. The lender funds the remainder. The grant documentation goes into the file at application; timing of the grant disbursement versus loan funding is the detail that determines structure.

Underwriting drivers for medical financing

Underwriters move through a medical file in a predictable order. The factors below carry the most weight; they are listed in roughly the order they affect the pricing decision.

  • Bank statement analysis. Three to twelve months of business bank statements. Lenders look at average daily balance, monthly deposit count, NSF activity, and overall cash flow stability. This is where seasonal businesses get fairly priced if they have the records.
  • Personal credit of principals. For owners with 20 percent or more equity, personal FICO drives both the available program and the rate. The pull is soft at prequalification, hard at formal application with the chosen lender.
  • Documented backlog or pipeline. Signed contracts, outstanding purchase orders, or a documented work backlog support the application story. For service businesses in particular, a pipeline that justifies the new equipment closes deals faster than projections alone.
  • Equipment as collateral. The equipment itself secures the loan. Asset class, age, condition, configuration, and resale market depth all factor into how lenders advance against the cost.
  • Industry sector. Some industries get standard pricing, some get a premium, some get a discount. Long-term stable sectors with low default rates (utility infrastructure, established medical, government contractors) typically price favorably.

How medical equipment is taxed

The tax treatment of a medical purchase often drives the structure decision (loan, $1 buyout, FMV lease) more than rate or term. The provisions below cover the main areas; the actual application to your situation should run through your tax adviser.

Section 179 expensing

Allows a taxpayer to elect to deduct the cost of qualifying property as an expense in the year it is placed in service, subject to annual limits set by Congress. Most equipment used more than 50 percent for business qualifies. The election is made on Form 4562 with the tax return.

Bonus depreciation interaction

Bonus depreciation under IRC Section 168(k) applies to qualifying property and runs alongside Section 179. The two interact: Section 179 is taken first and is subject to taxable income limits, then bonus depreciation applies to the remainder. Most equipment buyers use both.

State conformity

States vary on whether they conform to federal Section 179 limits and bonus depreciation. A few states still cap Section 179 well below the federal amount or disallow bonus depreciation entirely. Your effective tax savings depend on both federal and state treatment.

Frequently asked on medical applications

Is there a minimum or maximum loan size?
Across our partner lender base, most programs run from a $10,000 minimum up to several million on a single transaction. The mid-range (roughly $25,000 to $500,000) has the deepest lender competition and best pricing.
What if I want to upgrade the equipment mid-term?
You sell or trade out of the current equipment, pay off the existing loan from sale proceeds (plus any difference), and finance the upgrade. Some lenders streamline this through trade-up programs, especially within their portfolio of customers.
Can I pay off the loan early?
Yes, but check the pre-payment provision in your documents. Some structures carry a pre-payment penalty in the first 12 to 36 months. Others are open. Knowing the payoff math before signing prevents surprises if you decide to refinance or sell out of the equipment early.
What happens if the equipment needs warranty repair during the loan term?
The loan and the warranty are independent. You continue making loan payments while the equipment is in warranty repair. Service contracts and extended warranties can be financed into the loan if you choose, with the cost rolled into the principal.
Can I add equipment to an existing loan?
Not typically. New equipment is financed as a separate transaction. Some lenders offer master lease lines that allow adding equipment under one umbrella, which works best for businesses that buy equipment regularly.

Timeline expectations

What actually happens day-by-day, from application to equipment in service. Most buyers underestimate one or two of these steps; knowing them up front prevents surprises.

Decision to document signing
1 to 3 business days
Borrower review and signing of credit documents and personal guarantee. Most delays here are borrower-side rather than lender-side.
Apportioned plate registration (trucking)
2 to 4 weeks
New-authority trucking operators need apportioned plates before crossing state lines. Plan this into the funding timeline; temporary trip permits bridge the gap at higher per-state cost.
Insurance binder issuance
Same-day to 24 hours
Commercial auto and equipment insurance binders typically issue same-day from existing carriers. New policies for new businesses can run 2-5 business days to bind.
Full underwriting on complex deals
5 to 10 business days
Larger transactions ($500K+) or specialty deals (medical imaging, aerospace, mining) often require deeper underwriting. Plan funding date 2-3 weeks out for these.
Lease end-of-term decision deadline
60 to 90 days before term end
Most lease structures require notice of intent (purchase, return, or renew) 60-90 days before term end. Missing the deadline can trigger automatic renewal or other default consequences.
Equipment delivery and inspection
1 day to 16 weeks
Wide range depending on equipment type. In-stock equipment delivers in days. Custom-configured manufacturing equipment runs 8-16 weeks. Imported equipment runs 12-24 weeks.

Cost stack: what total ownership actually includes

The equipment purchase price is one line on the financed amount. The actual cost of ownership over the life of a medical deal includes the items below. Buyers who only budget for the purchase price often hit cash-flow surprise within the first 12 months.

  • Tooling and accessories. Cutting tools, attachments, fixtures, and accessories specific to the equipment. Often quoted separately from base equipment. Can run 10 to 40 percent of equipment cost.
  • Documentation and dealer fees. Lender doc fee runs $150 to $1,500. Dealer doc fee varies. Both may roll into financed amount or pay at signing.
  • Sales or use tax. State and local sales tax on the equipment. Rolls into financed amount in most states. Manufacturing and qualifying exemptions reduce or eliminate this in many states.
  • End-of-term residual or buyout. Lease structures: fair market value buyout at term end (FMV lease) or stated residual amount (TRAC lease). Loan/EFA structures: $1 buyout or no buyout. Plan for this from day one on lease structures.
  • Operating consumables. Recurring costs not included in the equipment purchase: fuel, fluids, filters, tools, parts. Equipment-specific.
  • Storage and security infrastructure. Indoor storage, security systems, and theft-prevention measures. Particularly important for landscape, construction, and small equipment frequently stored outdoors and at job sites.
  • Software licenses. CAM, design, control, and operational software. Often subscription-based with annual renewal. Can run $5,000 to $50,000+ per seat depending on equipment category.
  • Late payment fees and penalties. Late fees of 5 to 10 percent of payment if more than 10 days late. Default interest of 4 to 6 points may apply. Worth knowing before signing.

What if something changes mid-term

Equipment loans run for 36 to 96 months. Things change. The patterns below cover the situations that come up most often during the loan term and how they typically resolve.

Equipment serial number does not match UCC filing

Identify the error (dealer substitution, lender filing error, etc.) and resolve before subsequent financing. The UCC needs to match the actual collateral for enforceability. Lender amendment of the UCC handles this in most cases.

Business ownership change during loan term

Most equipment loans are personally guaranteed and assumable with lender consent during ownership change. The new owner submits an application similar to the original; the lender reviews and either consents or requires payoff.

Equipment used for something different from original purpose

Loan covenants sometimes restrict equipment use (no sub-rental, no out-of-state operation, etc.). Changing use materially without consent can trigger default. Request lender consent in writing before the change.

Equipment damage during the loan term

Insurance proceeds pay off the loan balance or fund replacement equipment with lender consent. The loan does not cancel automatically with the equipment loss; coordination with lender is required.

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Common questions about Medical financing

Do payer mix and reimbursement rates affect lending?

Yes. Lenders evaluate payer mix when underwriting larger medical deals. Higher commercial-insurance mix and lower Medicare/Medicaid dependence generally get better terms.

Are OEM captives (GE, Philips, Siemens) the only option?

No. OEM captives often have the best promotional rates but specialty medical-equipment lenders compete on flexibility, structure, and used-equipment financing. We compare both for every deal.

How do you finance used medical imaging?

Used MRI, CT, and ultrasound require certification and sometimes re-coil for imaging modalities. Used-equipment lenders factor this into terms. Documentation of certification status is required at application.

Can a new physician practice finance equipment?

Yes, with stronger personal credit, larger down payment, and sometimes a hospital affiliation or practice acquisition as the deal vehicle. Specialty lenders serve new practices.

What about Section 179 for medical equipment?

Most medical equipment qualifies. Annual Section 179 limit and bonus depreciation apply. Talk to your CPA about how the deduction interacts with practice income.

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Reviewed by

Ed Stapleton Jr.

Founder & Editor

Ed Stapleton Jr. runs Fund My Equipment. Every page on this site is written and reviewed by Ed.

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