Specialist Treatment for Healthcare Equipment Loans

The commercial lending sector typically uses the term ‘equipment’ to describe physical assets. That can include machines, plant, devices and other physical goods for a commercial operation. In the health and medical setting, financing is available for the full range of assets that a practice may require. That includes the diagnostic machines and treatment devices, as well as IT and the furnishings and fit out fixures for the facility.

When applying for commercial credit, applicants are required to provide financials on their operation. Some lenders also have a criteria of a minimum, trading period for approvals. Where a new practice does not have the full financials or does not meet all the criteria, they may see no doc or low options through specialist lenders and brokers.

The interest rate varies for the different commercial credit products. The rate offered to individual applicants can also vary. Lenders assess each application and make their rate and lending offer based on their assessment. The rates advertised by lenders will generally be for new goods and for good credit applicants.

Asset acquisition financing products include Chattel Mortgage, Lease, CHP and Rent to Own. The features of these products vary in regard to suitability to the cash or accrual accounting method, approach to the balance sheet and treatment of taxation and GST. The best option for an enterprise will be the one that meets their objectives and is in line with their approach to tax and accounting.

Yes. Financing is available for the purchase of IT systems for the medical and health profession.

The tax deductible elements of credit products vary. Rent to Own and Lease have tax deductible payments. With Commercial Hire Purchase and Chattel Mortgage, the asset is depreciated in line with ATO schedules. The amount of the annual depreciation is a tax deduction.

Yes. All practitioners and providers in the health and medical sector can apply for financing for their machines and other goods. Physiotherapists may require financing for treatment tables, exercise machines and other goods.

The interest rate on Chattel Mortgage, Lease, CHP and Rent to Own is typically at a fixed rate. The rate remains unchanged over the term of the credit.

The term approved for individual commercial credit applications is subject to lender guidelines. The goods being acquired would form part of the application assessment. Terms of up to 84 months can be approved for some acquisitions.

With commercial asset acquisition funding, the goods being acquired are the primary security against the funding, subject to lender approval. Some applicants may be requested to provide additional collateral by way of property or other assets.