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From small private practices to large healthcare center, medical professionals provide an invaluable service to people across the country. Unfortunately, the one thing all medical practices never have too much of is working capital. However, there is a way to tap into the value of the medical equipment at your practice to create a renewable source of working capital without having to take out loans.
Debt And The Healthcare Industry
The healthcare industry is no stranger to loans. With an increasing need for healthcare providers, loans and investments are used to launch and maintain practices. All of the financing programs leave providers struggling to crawl out from under a mountain of debt. Some have gone so far as to take out cash advances. While cash advances claim to be debt free, the prohibitive interest rates and hidden fees often leave medical practices with very little after paying overhead costs, loan installments, and advances. Instead of resorting to cost-prohibitive financing programs, some providers are looking inward to leverage their equipment.
Using Medical Equipment For Working Capital
Instead of applying for bank loans and taking on more debt, or using cash advances, many practices are using asset based lending. Asset based lending taps the value of specialized medical equipment and other items, to create a revolving line of credit. The line of credit becomes an extra source of working capital, and is replenished as practices pay back what they spend. Just like other revolving lines of credit, asset based lending does not place any debt on the balance sheets. In addition to medical equipment, practices can also leverage receivables, owned facilities, inventory, supplies, and more to maximize the amount of financing available.
New Medical Equipment Means Increased Financing
As a practice acquires more medical equipment, those items will be re-evaluated, and the amount of financing available will be increased accordingly. Many private practices and large healthcare centers use asset based lending for everything from purchasing supplies to advertising, and even paying down existing liabilities. Since asset based lending has no specific designation, the capital available can be used for anything a practice needs.
Unlock The Potential Of Your Medical Equipment
If your practice could use an extra source of working capital, and you do not want to take out another loan, talk to the experts at CNH Finance. We will work with you to get you the highest value for your fixed assets, so you can have a debt free source of working capital for long-term success.