# Medical Equipment Financing Fundamentals Canonical URL: https://fundmyequipment.com/learn/medical-equipment-financing-fundamentals/ Last modified: 2026-05-29T19:39:17+00:00 Type: efin_guide ## Summary Medical Equipment Financing Fundamentals. Comprehensive guide. ## Content Medical equipment financing covers diagnostic imaging, treatment systems, surgical tools, and clinical workflow technology used in physician offices, clinics, hospitals, and specialty practices. Equipment categories and typical financing EquipmentTypical priceUseful life MRI scanner$1M-$3M10-15 years CT scanner$300K-$2M8-12 years Ultrasound$30K-$300K7-10 years X-ray (digital)$50K-$250K10-15 years Operating room equipment$100K-$1M+8-12 years EMR/EHR system$50K-$500K5-8 years Patient monitoring$10K-$100K per station7-10 years Endoscopy / arthroscopy$50K-$300K7-10 years Industry-specific considerations Reimbursement-dependent revenue. Medical practice revenue is tied to insurance reimbursement rates, which can shift based on payer mix and regulatory changes. Lenders evaluate payer mix when underwriting larger deals. FDA-regulated equipment. Many medical devices require FDA clearance. Used equipment must have current certifications. Used MRI machines, for example, need recoil and recertification. Technology obsolescence. Imaging technology refreshes faster than mechanical equipment. Plan financing terms aligned with useful life. Service contracts critical. Major imaging equipment requires annual service contracts that can run $30K-$100K per year. Build these into operating budgets. Typical financing terms Rate range: 7% to 14% APR depending on credit tier and equipment age Term: 48 to 84 months Down payment: 0% to 25% depending on credit and equipment SBA eligibility: Yes; SBA 7(a) and 504 programs are well-suited Lender pool OEM captives: GE Healthcare Financial Services, Philips Healthcare Financing, Siemens Financial Services Healthcare-specialty lenders: Penobscot Financial Advisors, Bankers Healthcare Group, several mid-tier specialists Banks with healthcare divisions: most regional banks have healthcare lending teams SBA-backed lenders for smaller practices What can go wrong Industry-specific regulatory changes (emissions, licensing, safety) affecting equipment value Customer or contract concentration affecting cash flow Equipment age limits in lender underwriting boxes Seasonal revenue mismatched with monthly payments Inadequate maintenance reserves leading to deferred-service buildup Action steps Identify specific equipment with model and configuration Get quotes from at least one dealer and any captive financer Pull last 6 months of bank statements and 2 years of tax returns Run payment scenarios at different down payments Consider soft-pull prequalification before committing to a specific lender Apply with medical equipment specifics in the notes See also our insurance requirements guide and Section 179 strategy for tax planning.