How to Qualify for a Loan for Your Healthcare
Opening a healthcare facility takes careful planning. A...
December 23, 2025
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A practice buying a $400,000 imaging system in October 2026 is deciding against two clocks. The first started on September 16, when the Federal Reserve raised its benchmark rate for the first time since 2023 and signaled another increase before year end. The second stops on December 31, the last day equipment can be placed in service and still count toward 2026 tax deductions. Healthcare equipment financing is where both clocks meet.
Most guides on this topic list the benefits and send you to a lender. This one is built for the decision itself: how healthcare equipment financing works, what it costs right now, which structure fits which purchase, and what to prepare so a lender can say yes quickly. Figures reflect early October 2026, so confirm rates and tax rules before you sign.
7.00% | $2.56M | 100% | Dec 31 |
|---|---|---|---|
Prime rate since Sept 17 | 2026 Section 179 limit | Bonus depreciation, qualifying property | Placed-in-service deadline |
Healthcare equipment financing is a loan or lease that lets a medical practice acquire clinical or office equipment by paying over time, with the equipment itself usually serving as collateral. That collateral is why approval is often easier, and pricing more competitive, than with unsecured borrowing.
The category is also called medical equipment financing, and the two terms are interchangeable. It covers diagnostic imaging such as X-ray, ultrasound, CT, and MRI, plus surgical and procedure equipment, patient monitoring, sterilization, lab and testing equipment, exam-room furnishings, and dental or veterinary equipment. Software is the edge case. With no physical asset behind it, practice software is often better funded through a term loan or working capital, so ask a lender how it treats software before bundling it into an equipment request.
You will see equipment financing sold as a loan, an equipment finance agreement (EFA), or a lease. The differences matter more than the marketing suggests, and we break them down below. For the wider picture of how equipment fits alongside other funding, see our guide to healthcare financing options for medical professionals.
The process is simpler than most practices expect, and it starts with the equipment, not the application.
On September 16, the Federal Reserve raised the federal funds target range by a quarter point to 3.75% to 4%, its first increase since 2023, and indicated one more was likely this year. The prime rate rose to 7.00% on September 17. The next Fed meeting is October 28.
How much this affects you depends on how your financing is priced. A fixed-rate equipment loan or EFA locks the rate at signing, so a quote you sign now is protected from the next move. Variable products float. SBA 7(a) loans, for example, are capped at prime plus a spread that depends on loan size, per the SBA’s published maximums. At 7.00% prime, that works out to a ceiling of about 10.00% above $350,000, 11.50% from $250,001 to $350,000, 13.00% from $50,001 to $250,000, and 13.50% at $50,000 or less. Rate ranges published earlier in 2026 predate the increase, so they may understate what a new quote looks like today.
For 2026, the Section 179 limit is $2,560,000, and the deduction begins to shrink once a business places more than $4,090,000 of qualifying property in service, according to IRS Publication 946. On top of that, 100% bonus depreciation was restored for qualifying property acquired after January 19, 2025, which lets a business deduct the remaining cost of eligible equipment in year one. Section 179 is generally capped by business taxable income, while bonus depreciation is not.
For Section 179 medical equipment planning, the detail most people miss is the phrase placed in service. Signing a financing agreement or paying a deposit is not enough. The equipment generally has to be delivered, installed, and ready for use by December 31. For imaging and other equipment that needs site work, calibration, or inspection, that makes October and November the real deadline.
Financing does not weaken the deduction. Financed equipment generally qualifies the same way equipment bought with cash does. The structure you choose does matter, as the next section shows. This is general information, not tax advice, so confirm the numbers with your CPA.
Pro tip: Ask the vendor for a written delivery and installation date before you sign. If that date lands after December 31, the 2026 deduction conversation changes, and your CPA should hear about it before you commit.
Financing vs. leasing medical equipment comes down to three questions. How long will you use the equipment? How quickly will the technology turn over? Do you want the deduction this year? Here is how the three common structures compare.
Structure | Ownership | Typical tax treatment | Monthly payment | Best for |
|---|---|---|---|---|
Equipment loan or EFA | Yours from day one; lender holds a lien | Depreciation, Section 179, and bonus depreciation generally available | Mid | Long-life equipment you plan to keep |
$1 buyout lease | Transfers to you at the end of the term | Generally treated like a purchase | Higher than FMV | Equipment you want to own, often with little or no down payment |
FMV lease | Stays with the lessor; you can buy at market value, renew, or return | Payments generally expensed; typically not eligible for Section 179 | Lowest | Fast-changing technology, shorter use |
One correction to a common assumption: with a true equipment loan or EFA, your practice owns the equipment from day one. You do not wait for the final payment to become the owner. Ownership at the end of the term applies to leases, specifically the $1 buyout structure.
To match structure to equipment, start with useful life. Long-life items such as exam tables, procedure chairs, and autoclaves usually fit a loan or EFA. Technology that changes quickly, where a three-year-old model starts to feel dated, is where medical equipment leasing on an FMV structure earns its place, and a common rule of thumb points to FMV when you expect to use the equipment for about 36 months or less. The trade-off is the end of the term. If you decide to keep the machine, you may owe a buyout at fair market value. Healthcare Finance News and Medical Economics both walk through these trade-offs from the practice’s side of the table.
There is no single price, and published ranges disagree because they measure different lenders and different borrowers. Some guides put medical equipment financing rates at 5% to 12%, while others show 7% to 18% APR for medical and dental equipment. The spread is explained mostly by credit profile and practice maturity. One equipment lender’s published tiers show the pattern clearly.
Borrower profile | Typical APR | Typical term | Typical down payment |
|---|---|---|---|
Established practice, 700+ FICO | 7% to 12% | Up to 60 to 84 months | 0% to 10% |
Mid-tier, 650 to 699 | 10% to 16% | 48 to 60 months | 5% to 15% |
New practice or 620 to 649 | 14% to 22% | 36 to 48 months | 10% to 20% |
Treat these as a map, not a quote. Because many were published before the September rate increase, a current quote may land higher. Speed is the other variable. Online and alternative lenders often fund in two to five business days but price higher, while banks and SBA lenders offer better rates and longer terms but can take four to six weeks. Neither is wrong. The right choice depends on whether the equipment is needed now or can wait for a better rate.
Practices often finance the sticker price and get surprised by everything around it. Vendor price guides show how wide the range is. A new 1.5T MRI typically runs from about $1.2 million to $2 million, while a refurbished unit is listed at roughly $475,000 to $975,000. Those numbers exclude what happens after delivery.
Ask your lender whether taxes, fees, and installation can be rolled into the financed amount. Some lenders will do this, while others fund only the equipment invoice, which means cash out of pocket on day one.
Then test the purchase against revenue. Divide the all-in monthly cost (payment plus service) by your net reimbursement per procedure to find the monthly volume you need to break even. As an illustration, a $9,000 monthly all-in cost against $150 of net reimbursement per scan means 60 scans a month before the machine contributes anything. If your referral base cannot support that volume, no financing structure fixes the problem. For a deeper look at preserving cash while you upgrade, see our post on upgrading clinic equipment without draining cash reserves.
Refurbished imaging equipment is commonly priced 40% to 60% below new, which can make a purchase possible for a practice that could not justify the new price. Used and refurbished medical equipment financing is widely available, and many lenders fund new, used, refurbished, and even private-party equipment.
The catch is pricing. Lenders may charge higher rates and offer shorter terms on used equipment because of its shorter remaining life and higher risk of damage. A lower purchase price can still produce a lower payment, but run the numbers both ways. Before you commit, check the warranty, the service history, and the wear items. For X-ray based systems, ask how many hours are on the tube. A cheap machine with a tube near the end of its life can erase the savings in one repair.
Where you borrow matters as much as what you borrow for. Each source trades speed against cost and flexibility.
Source | Speed | Cost and terms | Best for |
|---|---|---|---|
Online or alternative lender | Days | Higher rates, shorter terms, easier credit | Urgent purchases, newer practices |
Bank | Four to six weeks | Better rates, longer terms, heavier documentation | Established practices with banking relationships |
SBA 7(a) | Weeks | Rate ceilings set by loan size (see above); funds equipment plus working capital | Bundling equipment with other practice needs |
SBA 504 | Often 30 to 90 days | Fixed rate, 10, 20, or 25 year terms, about 10% down | Major equipment with 10+ years of remaining life |
Vendor or manufacturer program | Fast | Sometimes promotional rates; limited to that vendor’s equipment | Buying from one manufacturer |
The SBA 504 program deserves a closer look for big-ticket purchases. It covers long-term machinery and equipment with a remaining useful life of at least 10 years, and the fixed rate and long term can lower the payment compared with shorter-term equipment financing. It is not designed for short-life items or working capital, so many practices use it for a major imaging purchase and a different product for everything else.
Most practices end up blending sources. A fixed-rate EFA for one machine, an SBA loan for a larger project, and a vendor promotion for a smaller purchase can all coexist. A broker or advisor who works across lenders can compare them side by side. For a broader view of products, see our guide to healthcare loans for doctors and clinics.
Published qualification thresholds vary, but common ones include a FICO score of 600 or higher at online lenders and 700 or higher for bank pricing, monthly revenue above roughly $15,000, between six months and two years in business, and a vendor quote for the specific equipment. Healthcare-specific underwriting often looks beyond the score, at payer mix, reimbursement stability, and provider productivity.
A packet that answers those questions up front shortens the process:
Gaps in bank statements and inconsistent deposits are among the most common reasons a file slows down, so explain any irregularity before the underwriter has to ask.
It depends on how long you will keep the equipment. A loan or EFA suits equipment you will use for years, gives you ownership from day one, and generally qualifies for depreciation and Section 179. An FMV lease suits technology that ages quickly, usually 36 months or less, and keeps payments lower. A $1 buyout lease sits between the two.
Not if your rate is fixed. A signed loan or EFA keeps its payment for the full term. Variable products, including most SBA 7(a) loans and lines of credit, move with the prime rate, which rose to 7.00% on September 17. New quotes reflect the higher base, and locking a fixed rate now protects you from any further increase.
Generally yes. Equipment bought through an equipment loan, EFA, or $1 buyout lease is treated like a purchase, so it can qualify for Section 179 up to $2,560,000 in 2026 and for 100% bonus depreciation. Payments on a true FMV lease are typically expensed instead. Your CPA should confirm how this applies to your situation.
Ordering or financing is not enough. For a 2026 deduction, the equipment generally must be placed in service, meaning delivered, installed, and ready for use, by December 31. Imaging systems that need site preparation or calibration can take weeks, so get a written installation date from the vendor and ask your CPA how the rule applies.
Yes. Many lenders finance new, used, refurbished, and private-party equipment, though used equipment may carry a higher rate and shorter term. Refurbished imaging often costs 40% to 60% less than new, so the payment can still come out lower. Check warranty terms, service history, and wear items such as X-ray tubes before you commit.
It depends on the lender. Some roll taxes, fees, and installation into one financed amount, while others fund only the equipment invoice. Service contracts, which often run 8% to 12% of equipment cost per year on imaging systems, are frequently billed separately. Ask what is included before you apply so a surprise down payment does not derail the purchase.
Often, with tighter terms. Lenders typically ask newer practices for 10% to 20% down, stronger personal credit, and sometimes a personal guarantee. Some approve with under two years in business, but the best rates usually go to practices with two or more years of revenue history. A solid equipment quote and clean financials help.
Published thresholds commonly start around a 600 FICO score at online lenders and 700 or higher for bank pricing, with down payments from 0% to 20% depending on credit and equipment type. Some structures offer 100% financing. Time in business, monthly revenue, and the equipment itself also affect approval.
The best healthcare equipment financing decisions in late 2026 share a few habits. They pick the structure by how long the equipment will be used, not by the lowest advertised payment. They lock a fixed-rate quote before rates move again. They confirm a written installation date so the equipment is in service by December 31. They price the total cost of ownership, not just the quote. And they hand the lender a clean packet.
If you are weighing a 2026 equipment purchase, National Medical Funding can compare structures and lenders for your practice and help you move before both clocks run out.
Explore Healthcare Equipment Financing
This article is for general information and is not tax, legal, or financial advice. Rates, terms, and tax rules change, and eligibility varies by lender, credit profile, and equipment. Confirm current figures with your lender and CPA. Have more questions? Visit the National Medical Funding FAQ page.
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