Medical Equipment Financing Program Overview
Obtaining financing for your clinic and keeping ahead of the competition can be a tedious and frustrating process, especially if traditional lenders have turned you down or require high fees, collateral, credit history or all of the above at the same time. No worries; Circularity’s financing programs were designed for all kinds of situations and equipment and harness the speed and accuracy of the latest fintech. Circularity provides unmatched convenience and industry-leading support to our customers nationwide and internationally.
Typically, by taking a closer look at your business’s strengths, operating history, bank deposits, credit card customer history, personal credit score and some other details for the past 6 to 12 months, Circularity can accept things that pure lenders can or will not.
Fintech’s early focus was on merchant lending structures (working capital), given the opportunity to control and collect cash flows through POS systems. This focus on working capital financing has continued, but now more fintech’s are expanding into term loan financing. For example, OnDeck offers business loans from $5,000 to $500,000 and LendingClub from $15,000 to $300,000. Circularity is partnering with leading alternative financing firms to provide a wide range of services to all kinds of clinics via its own funds and third-party resources.
Repayment terms can be based on a percentage of cash receipts (working capital) or monthly installment plans (generally from 24 to 36 months).
Facilities are either secured by new or old equipment and other assets, such as cash down payment, or are unsecured with a personal guarantee that is required from the owner(s) of the business.
Pricing varies depending on risk rating, structure and term. The posted pricing by fintechs runs from 8% to 50%, but it is worth noting that typical yields on portfolios from publically traded fintechs run from the mid-20s to mid-30s. Circularity can offer competitive and even zero interest rates to eligible clinics as a result of the strategic nature of the financing that allows Circularity to mitigate risks that pure lenders just cannot achieve.
For example, Circularity can resell new and used equipment with zero or modest value depreciation and provide unique support in staffing, sales and marketing activities.
The current fintech concept of automated commercial lending relies on minimizing the cost of underwriting, documentation and account management. Circularity is taking full advantage of these time and cost benefits while applying proprietary tools to assess each facility in person with a view on long-term personal relationships.
Financing Program Highlights
❖ Established, start-ups and new/young businesses
❖ A through D credit grades
❖ Financing from $50,000 to $2,000,000
❖ Application-only programs with no verification of income up to $400,000
❖ Terms from 12 to 72 months
❖ Seasonal payment options
❖ 100% prefunding
❖ Typically 2-5 days approval and funding, depending on availability
❖ Used and new equipment
What We Require?
Please submit the information listed below for Circularity’s fintech team’s review and approval. Our team can approve your transaction as fast as 24 hours, but a 5-day turnaround time is typical if everything looks acceptable.
➢ Credit application (will provide after items #2-5 below are submitted)
➢ Invoice(s) with short description of equipment
➢ 6 months bank statements
➢ 2 years tax returns
➢ 1 year business financial statement