Your medical equipment loan’s interest rate will vary based on many factors.
The first factor that determines your interest rate is the type of loan you apply for. Remember, a business owner might not qualify for certain loans because of:
- Low credit scores
- Low revenue
- Having been in business for a short time
Here are some common starting points for interest rates on various options through Fast Capital 360’s lending partners:
Low credit scores not only disqualify small business owners from certain lenders and financing types, but they will raise your interest rate as well.
While you can still get medical equipment loans with bad credit, your interest rate might exceed 10% or more than 20%.
Time in Business
How long your business has been in operation also plays a role in your interest rate. The younger your company is, the riskier it is to lenders.
Seeking funding as a startup could mean steep interest rates or disqualification from certain programs altogether. Most healthcare equipment financing companies require your business to be at least 2 years old.
If you haven’t met that requirement yet, you might consider alternative funding options, such as MCAs, which require companies to be in business for at least 6 months.
Your annual revenue impacts financing eligibility.
To qualify for equipment financing through Fast Capital 360’s lender network, an applicant must generate a minimum of $160k in annual revenue.
However, the revenue thresholds set for other financing programs are far lower. For instance, to qualify for an MCA, a business must generate $100k in annual revenue.
Still unsure about taking a loan against medical equipment? Check out our equipment financing calculator to learn more and estimate your cost of borrowing.