Medical equipment financing for practices comes from five kinds of lenders and companies: banks, manufacturer and vendor programs, specialty healthcare lenders, independent leasing companies and SBA-guaranteed lenders. Which one suits an MRI, a laser or therapy equipment depends on the costs around the machine, such as installation and site build-out, on how soon you expect to upgrade, and on how each offer handles liens and the end of the term.
Which lenders and companies finance medical equipment for practices?
Terms for these five providers have no official source, so treat the table as a description of how each usually works.
| Provider | How it usually works | Often fits | Ask about |
|---|---|---|---|
| Banks | Term or equipment loan underwritten on the practice's financials | Established practices | Lien on the equipment or on all assets |
| Manufacturer and vendor programs | The maker's finance arm or a partner quotes at the point of sale | Buyers who want service, upgrades and financing in one place | The cash price, and trade-in terms in writing |
| Specialty healthcare lenders | Healthcare-focused lenders that may fund soft costs and shape payments around a ramp-up | Heavy installation or a new service line | Soft-cost cap and first payment date |
| Independent leasing companies | Fair market value or $1 buyout leases on any vendor's equipment | Technology you'll replace early | Purchase option and return costs |
| SBA-guaranteed lenders | 7(a) and 504 loans made under SBA rules | Start-ups, and projects bundling equipment, build-out and working capital | Timeline, collateral and personal guaranty |
A bank's blanket lien doesn't automatically shut out the others. Under UCC 9-324(a), a perfected purchase-money security interest in goods other than inventory or livestock generally has priority over a conflicting security interest in the same goods if it's perfected when the debtor receives possession or within 20 days thereafter. UCC 9-103 ties that status to an obligation incurred as all or part of the price of the collateral, or for value given to enable the debtor to acquire rights in or the use of it if the value is in fact so used, which is how a vendor or equipment lender can hold first position on a new scanner. State versions of the UCC vary, and your existing loan agreement may restrict new debt, so read its covenants first.
Soft costs: installation, shielding and site build-out
The vendor's quote for an MRI usually covers the scanner. The site plan can add rigging, a radiofrequency-shielded room, electrical and cooling work, IT integration, training and acceptance testing. Lasers and therapy equipment usually need far less site work. Funding sources treat these costs differently:
- SBA 504. SOP 50 10 8.1, effective October 1, 2026, lists "all costs associated with the purchase, transportation, dismantling or installation of machinery and equipment" among eligible project costs.
- SBA 7(a). Eligible uses include acquiring and installing fixed assets and renovating existing buildings.
- Equipment lenders, lessors and vendor programs. The share of soft costs they'll finance is each lender's policy, so get the cap in writing.
In leased space, when $500,000 or 30% of SBA loan proceeds, whichever is less, will go to leasehold improvements, or that much of the proposed collateral is leasehold improvements, fixtures, machinery or equipment attached to the leased real estate, the lender must obtain a copy of the written lease. On a 7(a) loan the lease term, counting renewal options only you can exercise, should equal or exceed the loan term, and on a 504 loan it must. The SOP also says an assignment of lease and landlord's waiver should be obtained. If the lender can't obtain either one, the lease term must equal or exceed the loan term on a 7(a) loan as well, so raise both early.
Revenue timing matters too. CMS (page updated August 17, 2026) says any supplier that performs the technical component of advanced diagnostic imaging, defined as MRI, CT and nuclear medicine imaging such as PET, must be accredited by a CMS-approved accrediting organization before it can receive Medicare payment for those imaging services. Suppliers paid under the physician fee schedule can include physicians or other practitioners, independent diagnostic testing facilities and other facilities. X-ray, ultrasound, fluoroscopy and mammography don't count as advanced diagnostic imaging. The requirement doesn't apply to hospitals or critical access hospitals. Ask the accrediting organization how long its review takes, and ask each lender when the first payment falls due.
A worked example: one MRI project financed three ways
Every figure here is a placeholder assumption, because equipment prices and lender rates have no official source. Assume a $1,200,000 scanner and a $1,650,000 project once you add $450,000 of soft costs: $280,000 for rigging, the shielded room and construction, $90,000 for electrical and cooling, and $80,000 for IT, training, testing, accreditation, permits and contingency.
| Structure | Financed | Your cash | Assumed rate and term | Monthly payment | Total interest |
|---|---|---|---|---|---|
| Vendor program for the scanner, bank loan for soft costs | $1,200,000 and $450,000 | $0 | 7.25% for 84 months and 9.00% for 60 | $27,599 for 60 months, then $18,258 | $444,166 |
| Healthcare lender, soft costs capped at 25% of the invoice | $1,500,000 | $150,000 | 8.25% for 84 months | $23,567 | $479,593 |
| SBA 7(a) loan for the whole project | $1,650,000 | $0 | 10.00% for 120 months | $21,805 | $966,585 |
The 7(a) loan has the lowest payment and about twice the interest of either of the other two, because it runs three years longer at a higher assumed rate. That rate is the SOP's ceiling for a variable-rate 7(a) loan above $350,000 that uses prime as its base rate, Prime plus 3.0%, or 10.00% with the bank prime rate at 7.00% on October 1, 2026 (Federal Reserve H.15). The row holds that rate flat for all 120 months to keep the math simple, though a variable rate moves with prime. It also assumes an established practice and leaves out fees such as the guaranty fee.
Two SOP rules show why soft costs complicate the SBA route. A standard 7(a) loan needs debt service coverage of 1.15 or better, so $261,658 of annual payments calls for roughly $300,900 of operating cash flow before any other debt. In SBA's "fully secured" test for Standard 7(a) loans, new machinery and equipment (excluding furniture and fixtures) counts at no more than 75% of its price minus prior liens. On its own, the scanner supports at most $900,000 of a $1,650,000 loan. Other fixed assets count too, and if a shortfall remains the lender must take available equity in personal real estate, unless that equity is under 25% of the property's fair market value.
▦Estimate your equipment financing paymentsRun the numbers in the equipment financing estimator →▸Upgrade cycles: match the term to how long you'll keep the equipment
Imaging and laser technology often gets replaced before the financing ends. Take an assumed $150,000 laser financed at an assumed 9.00% for 60 months. The payment is $3,114 a month, and after 36 payments you still owe about $68,157. If you want the newer platform in year three, the trade-in credit has to clear that payoff or you cover the gap in cash.
A loan or $1 buyout lease builds ownership and suits equipment you'll run for its full life. A fair market value lease leaves the resale question with the lessor, and you finish the term with no equity.
Ownership opens up depreciation deductions, with a timing catch. For tax years beginning in 2026, the Section 179 limit is $2,560,000, reduced once property placed in service exceeds $4,090,000 (Rev. Proc. 2025-32, section 4.24). IRS Publication 946 (2025 edition) says you're considered as owning property even if it is subject to a debt, and that a machine delivered last year but not installed and operational until this year is placed in service this year. A December delivery that isn't installed and operational until February lands in the later year, so talk to your CPA before signing near year-end (see our Section 179 guide).
Can a physical therapy clinic get an SBA loan for equipment?
A physical therapy clinic can qualify if it meets SBA's standard tests. Under SOP 50 10 8.1 the applicant must be an operating business organized for profit, located in the United States and small under SBA's size standards, and the lender must certify that credit isn't available elsewhere on reasonable terms. Businesses that need professional licenses are eligible provided the ownership structure meets state requirements.
| Program | Size | Rules that matter for equipment |
|---|---|---|
| 7(a) Small | $350,000 or less | Debt service coverage of 1.10 or better; variable rate capped at Prime plus 6.0% from $50,001 to $250,000 |
| SBA Express | $500,000 or less | Credit decision, including any equity injection, left to the lender |
| Standard 7(a) | Over $350,000, up to $5,000,000 | Coverage of 1.15 or better; variable rate capped at Prime plus 3.0% |
| 504 | Debenture capped at $5,000,000 per business and its affiliates, or $5,500,000 per project for small manufacturers and eligible energy projects | Fixed assets with a useful life of at least 10 years at a fixed location; borrower contributes at least 10%, or 15% for a new business or a limited or special purpose property and 20% for both |
On 7(a) loans, equipment terms generally shouldn't exceed 10 years, or up to 15 if the IRS asset class useful life supports it. A clinic generating revenue for 1 year or less is a start-up and needs a 10% equity injection based on project cost under Standard 7(a) and 7(a) Small. Anyone who owns 20% or more must give an unlimited personal guaranty.
A $180,000 therapy equipment package under 7(a) Small could carry a variable rate as high as 13.00% in October 2026, which is Prime plus 6.0% with prime at 7.00%. If the rate stayed at that ceiling for all 10 years, the payment would be about $2,688 a month, so 1.10 coverage means roughly $35,476 a year of operating cash flow if the clinic has no other debt. The 504 program suits long-lived fixed assets such as an MRI suite in a building you're buying. SBA's examples of limited or special purpose property include "hospitals, surgery centers, urgent care centers, and other health or medical facilities," and those projects need a contribution of at least 15%, or 20% if the practice is also a new business operating 2 years or less (see 504 requirements).
How to compare competing equipment financing offers
Ask every lender the same questions:
- Amount financed. Which soft costs are included, and what's the cap?
- Total dollars. Compare total payments and fees, since the lowest payment in our table carried the most interest.
- First payment. Is it tied to delivery, installation or a fixed date?
- End of term. On a lease, how is fair market value set, and who pays to de-install and ship the equipment?
- Lien and guarantee. Does the lien cover the equipment or all assets, and who signs a personal guarantee?
- Early payoff and upgrades. What does prepaying cost, and what are the trade-in terms?
EQ Funding doesn't lend. One application goes to a network of lenders that compete for the deal, and each lender assesses your credit and repayment ability and sets its own approval and terms. Two or three written offers next to the vendor's quote show what point-of-sale convenience costs. Start with equipment financing, or SBA loans if the project includes build-out and working capital.