Case Study

Medical Equipment Investment

Company —
Care Provider
Business Type —
Private Health Services
Requirement —
Funding for MRI Machines
Solution —
Lease Finance
 

Expanding Private Medical Services through Finance

Committed to offering comprehensive and cutting-edge medical solutions, this business focuses on delivering top-notch patient care and advanced diagnostic services. Financing new equipment was a way of providing additional services across their network of private clinics, imaging centres, and specialised medical facilities that cater to the diverse healthcare needs of their clients.

The Challenge

As the business aimed to enhance its range of medical services, it recognised the need to invest in state-of-the-art MRI machines across its associated businesses. However, acquiring such equipment involved substantial capital investment, and financing was essential to fund this expansion.

Investing in Advanced MRI Machines

By securing specific medical and dental finance from Portman the business was able to purchase advanced MRI machines from leading manufacturers in the industry. These high-quality machines facilitated faster and more precise diagnostic imaging, ensuring that their associated businesses could provide top-tier medical services to their patients.

New medical equipment

Benefits and Challenges in Private Health and Medical Services

Benefits:

  1. Enhanced Diagnostic Capabilities: Investing in advanced medical equipment, such as MRI machines, allows private healthcare providers to offer more accurate diagnoses and personalised treatment plans.

  2. Patient Satisfaction: Access to modern medical technology contributes to better patient experiences, leading to higher levels of satisfaction and loyalty.

  3. Competitive Edge: Private medical businesses with state-of-the-art equipment can differentiate themselves in the market, attracting more patients and referrals.

Challenges:

  1. Capital Intensive: Acquiring medical equipment, especially advanced diagnostic machines, can require significant upfront capital, putting financial strain on businesses.

  2. Technological Obsolescence: Continuous advancements in medical technology may lead to the rapid obsolescence of equipment, necessitating frequent upgrades to stay competitive.

Solving Challenges with Finance

Medical and dental equipment financing through Portman, offers tailored solutions to overcome the financial challenges faced by private healthcare providers. By spreading the cost of equipment acquisition over time, businesses can preserve working capital for other essential operations and investments. Leasing options also provide flexibility in upgrading equipment, ensuring that healthcare providers can keep pace with technological advancements.

Brand new medical facilities

Conclusion

By leveraging the benefits of finance, the business successfully expanded its range of private medical services by investing in advanced MRI machines for use across its associated businesses. The strategic utilisation of medical equipment financing from Portman empowered the business to offer top-tier diagnostic services, contributing to better patient outcomes and solidifying their position as a leading healthcare investment company.

Other private medical businesses can also capitalise on the benefits of investing in new equipment, enhancing their service offerings, and maintaining a competitive edge in the rapidly evolving healthcare industry.

If your business is in the healthcare sector and you are looking to arm your medical professionals with the latest equipment to provide the highest level of healthcare service, Portman can help.

Upgraded medical services

Partner with Portman, for a successful future

There are plenty of finance options out there for you, deciding which is right for you will take time and consideration. But why should you choose these financing options from Portman?

At Portman Finance Group we are focused on serving the needs of you and your businesses, and have been doing so for thousands of other businesses since 2007, raising over £1 billion in funding for UK SMEs. 

We take the time to truly understand your business and what you need, ensuring we secure the right funding for you. As both a broker and a lender, we can also offer financial options that others cannot. We promise you will have one point of contact from start to end, providing you solutions quickly, sometimes within hours.

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Hire Purchase

Hire purchase usually involves paying the VAT and a deposit up-front. Fixed monthly repayments are then made, affected by whether you pay off the entire loan over the term or chose a final balloon payment. The final option to purchase is guaranteed for a nominal fee, transferring ownership of the asset to the customer.

Hire purchase is well-suited for situations where a company definitely wants to own the item at the end of the term, often where the asset has a significant usable lifespan, a high residual value and will not need to be upgraded.

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Lease Finance

Equipment leasing allows a business to acquire hard or soft assets without the upfront costs associated with large purchases. A lender purchases the item, the business then leases it through fixed monthly payments over an agreed term.

Typically, asset finance is provided for high value ‘hard’ assets such as machinery, equipment, or vehicles, but Portman also arranges asset finance for ‘soft’ assets such as IT, fitness, catering, or vending equipment, as well as premises fit-outs, furniture or even air-conditioning.

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Business Loans

Business loans are a way of borrowing money, which is repaid in monthly instalments, including interest, over an agreed term. Business loans are a common way to help smooth out cashflow fluctuations and take opportunities where otherwise they could be missed due to a lack of working capital.

Business loans can be secured or unsecured. Portman typically provides unsecured loans which can be more flexible and do not require collateral but are likely to require a personal guarantee. Secured loans are tied to an asset which the lender can claim ownership of if repayments are not made, these may be used in equipment refinance deals.

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Start Up Loans

New businesses often need an injection of finance to get them off the ground. Asset finance for new businesses allows you to focus on running your company and bringing in customers, confident that you have the equipment, vehicle or stock you need without the large initial outlay.

Using finance for your equipment means that you preserve the credit card or overdraft for contingency and operating expenses when the unexpected happens.

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Equipment Refinance

If you recently bought a high-value item outright but would now prefer to have financed it, we can help with a sale-and-lease-back agreement. If the item is less than 3m old, give us a copy of the invoice and we will calculate the current value. After a few checks and acceptance of the term and monthly repayments, we can give you the cash equivalent of the invoice to put back into the business. You’ll then make fixed monthly payments including interest, whilst your asset earns you money.

If your business owns high value assets that are not currently on finance, subject to a valuation, it is also possible to use them as security for a loan, with lenders offering a cash loan up to a % of the asset’s value.

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Recovery Loans

Recovery Loans offer an excellent way of making sure your business gets back on its feet after the long-term effects of the pandemic and subsequent supply chain disruption. Businesses with turnovers up to £45m, including those who have previously benefited from the government’s CBILS, BBL or RLS, can apply.

Recovery Loans can be used for any legitimate business purpose or simply to provide cashflow. Rates are capped and the government continues to guarantee 70% of the outstanding balance, giving added security for lenders who are now able to consider finance for businesses who may have previously found it difficult to obtain.

Up to £2m can be borrowed on terms from 2 to 6 years. Your personal private residence cannot be taken as security.

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