Featured Image

Medical Equipment Leasing for Good and Bad Credits

Posted On: February 7, 2023 author Paul Kendall

Are you looking to acquire equipment through medical equipment leasing?

The growing demand for instant access to medical attention has resulted in the expansion of the private healthcare sector. But doing so doesn’t come cheap.  Medical businesses require a huge investment for continual operation.

Medical equipment alone can cost hundreds of thousands of dollars and take up more than half of a medical business’ operating capital. But as effective equipment can be a determining factor in life or death situations, it’s wise not to skimp on equipment.

That's why new and expanding medical businesses opt to acquire the necessary medical equipment through medical equipment leasing. Financing medical equipment is an easier way to have access to the most advanced technology for the cheapest cost.

Although monthly payments for medical equipment leasing are flexible, these are highly dependent on your personal and business’ credit rating. The equipment lease won't report to your personal credit bureau but medical equipment lenders will pull a soft credit inquiry on it to make sure there are no problems. 

In this blog post, we’ll discuss the various interest rates of medical equipment leasing based on the credit rating of a business and personal credit history.

Acquire Medical Equipment Through Medical Equipment Leasing


Acquiring medical equipment through medical equipment leasing is one of the best decisions you can make for your healthcare practice. This can help you use the necessary equipment to fulfill your duties without sacrificing cash flow.

But what do you need in order to be qualified for medical equipment leasing?

Medical Equipment Leasing for Good and Bad Credits - equipment


Qualifying for Medical Equipment Leasing

Providing state-of-the-art healthcare services is not easy without efficient medical equipment to help doctors facilitate treatments and diagnosis. The need for advanced technology is increasing, but so is its price.

Thankfully, medical equipment leasing makes access to this equipment easier. This type of medical equipment loan is offered by health care equipment financing companies requiring fewer qualifications and paperwork, and within a 24 hour approval period.

Any type of business in the healthcare sector can use medical equipment leasing. This is the case, As long as you meet the requirement of the equipment financing company.  Leasing can even be used for startups.

Requirements for Businesses with Good Credit


Although easier than a bank, approval for medical equipment through a medical equipment financing company still depends on the owners personal and business’ credit. Most medical equipment financing companies require startup and existing business to have a good credit.

However, equipment leasing companies also look for other factors aside from the credit score when deciding whether to grant medical equipment leasing.

The decision primarily depends on a combination of factors:

  • Discipline of medicine you practice, 
  • Your credit score (640+  on average),
  • Business history, which includes years licensed as a medical professional,
  • Type of medical equipment (MRI Machines, X-Ray Devices, Lasers, Dental equipment, Chiropractic equipment),
  • Size of the medical equipment loan, and
  • Age of the medical equipment.


If you fail to meet the required credit criteria, you still have a chance of getting approved for medical equipment leasing with bad credit.

How to Qualify with Bad Credit


Most medical equipment lenders only want to deal with borrowers with a credit score of 650 and higher.

If you have a low credit rating, there are other factors that can secure your medical equipment leasing approval:

  • Get a cosigner,
  • Offer collateral, and
  • Make a sizable down payment or security deposit.
  • Show good cash flow in your business checking account.


The most important factor to medical equipment lenders is your healthcare practice's cash flow, as this ensures that your practice has the capability of repaying the leased equipment on a monthly basis without any issues. 

Medical Equipment Leasing for Good and Bad Credits - medical equipment


Expected Monthly Payments for Healthcare Equipment


Not all medical equipment financing companies offer the same payment for their medical equipment leasing programs. Because of this, it is recommended to check reviews and feed backs on the various companies before applying for equipment financing. Make sure they're not just a fly by night company out to rip off your first and last monthly payments. 

If the medical equipment financing company is not showcasing their rates or payments, exercise caution as this means they maybe hiding them for a reason. To help you make a better decision on your medical equipment leasing, here are the example payments for businesses with great, good, and bad credit.

Payments for practices with Great Credit


You can get low rates if your practice and personal credit rating are above a 650. Lower interest rates are offered to practice owners with great credit as this assures equipment financing companies that payments can be made timely.

Here’s an example of payment for businesses with great credit:

Let’s assume you leased $150,000 worth of medical equipment with a contract lasting 60 months. If you have perfect credit, you can expect to pay around $2,899.92 every month. No payment up front. 

You can also lease $150,000 worth of medical equipment with a contract lasting 63 months with perfect credit, you can have your first three months off and pay nothing for the first three months of your lease and pay around $2,977.28 every month. 

Keep in mind that the length of the equipment finance contract can also affect the monthly payment. Longer contracts mean lower payments with higher total out of pocket costs, while shorter contracts mean higher payments, with less total out of pocket costs.

Interest rates can also depend on the length of the contract. A usual starting rate for medical equipment leasing is 5.9% up to 72 months, with an increased interest rate if you opt for a longer contract or opt for deferred monthly payments.

Medical equipment leasing companies will treat your business different if your credit score is below 650. Practices with an average or good credit will have higher monthly payments.

Payments for Business with Good Credit


Business owners with a credit rating of 600 - 650 are considered to have a decent credit. This means their monthly payments can be expected to be higher than business owners with great credit.

With a good credit, leasing $150,000 worth of medical equipment for 24 months can result in a $7,025 monthly payment . A 36-month term can mean monthly payments of $4,946, whereas a 60-month term can be as low as $3,298 per month.

Payments for start up healthcare practices


Payments for startup businesses can be a around the same. Assuming the startup has above a 650 FICO and Licensed three years and leasing $150,000 worth of medical equipment for 72 months, monthly payments can be $2,700 a month.  

Payments for Business with Bad Credit


Unlike banks, medical equipment leasing companies also offer financing to practices with bad credit. However, this requires additional conditions given the lack of concrete assurance that payments can be made.

Those practices with credit rating below 600 still have a chance of having their applications approved, but must expect monthly payments to be higher or doubled than payments made by businesses with exceptional credit.

As with other credits, payments for business owners with bad credit is dependent on the length of the contract.

For example, here’s the expected monthly payment if you lease $150,000 worth of equipment even if you have a bad credit.


  • $7,855 per month for a 24-month term,
  • $5,808 per month for a 36-month term, and
  • $4,220 per month for a 60-month term.


Use our medical equipment leasing calculator  to calculate how much your medical equipment leasing payments could be and how much medical equipment you can afford to buy based on your monthly budget.

Final Thoughts on Medical Equipment Leasing


As the public’s need for state-of-the-art healthcare increases, the private healthcare sector need for growth also increases. However, this does not come cheap.

Thankfully, medical equipment financing companies offer medical equipment leasing to help medical practices gain access to effective healthcare equipment without sacrificing cash flow. These medical equipment loan companies approve applications with fewer qualifications and requirements, unlike traditional banks and lenders. Find a company that specializes and knows doctors and how healthcare practices grow and work. 

In this blog post, we discussed how medical equipment leasing can be used by practices with good and bad credit ratings, and the payments that can be expected.  

As with all medical business loans and equipment leases, the credit rating of a business owner will affect the amount of monthly payments. Years licensed as a medical professional will affect your interest rate. Discipline of medicine you practice can affect your interest rate and amount of exposure a medical equipment lender will grant you.  Practices with great and good credit can expect lower interest rates, whilst practices with bad or low credit rating end up paying higher monthly payments on their equipment leases. Unless you have a big practice with strong business financials, your personal credit rating will affect the amount of interest you pay on your medical equipment loan. 

With equipment financing, you’ll get to finance 100% of the equipment’s cost with a flexible plan that suits your budget. You can even get working capital added onto the same equipment lease term. Add working capital up to 25% of the equipment cost to your agreement.

When you're ready to Apply for medical equipment leasing. We invite you to call Trust Capital and speak with a medical equipment lease specialist that can offer you a no obligation approval and run payment scenarios for you subject to credit approval at 866-458-4777.

New Call-to-action Protection Status

This page is DCMA Protected.

The Digital Millennium Copyright Act, better known as the DMCA, is a federal law in the United States. Enacted in 1998, the DMCA is referred to as it protects a website or app from copyright infringement claims.


Find Out Quick And Easy