Medical equipment financing vs leasing: which is better for my practice?

Yes—you can finance diagnostic or therapeutic equipment in 2026 with 48–84‑month terms, 9–13% APR, 15–20% down payment, and a soft credit pull.

See rates now.

The specifics

The most common loan terms for equipment purchases are 48 to 84 months, with APRs ranging from 9 % to 13 % and down payments of 15 % to 20 % of the purchase price—figures that have been reported by industry analysts for 2026【Crestmont Capital】. Lenders typically perform a soft credit pull that does not affect your score【Crestmont Capital】, and the approval process usually takes 30 to 45 days【Crestmont Capital】. For practices with a strong cash flow—e.g., a debt‑to‑income ratio below 40 % and a debt‑service coverage ratio above 1.25×—the terms tend to sit at the lower end of the range【Crestmont Capital】. If revenue streams are less predictable, lenders may require a higher down payment or a collateral pledge, but the overall cost remains comparable to leasing [[Lease Foundation]].

The U.S. market for medical equipment financing is projected to reach $404.9 billion by 2035, growing at a CAGR of about 10 % between 2026 and 2035【Precedent Research】. This growth signals increasing demand for both new clinical devices and updated diagnostic technology, making financing options more competitive after 2026 【GMI Insights】.

Qualification & edge cases

Most lenders require a minimum FICO score of 740 for the most favorable APRs; scores between 620 and 679 qualify for fair‑credit rates, typically 3–5 percentage points higher than the base rate, and a 15–20 % down payment【Crestmont Capital】. Practices under 12 months of operation or with annual revenues below $200 k may face stricter scrutiny or a need for a personal guarantee【Crestmont Capital】. In cases where a debt‑service coverage ratio falls slightly below 1.25×, a secured loan backed by the equipment can offer a 1 %–3 % APR reduction【Crestmont Capital】. For those with credit scores below 620, financing is still available but usually comes with APRs of 12 %–15 %, down payments of 10 %–20 %, and longer approval timelines—still within the 30–45 day window【Crestmont Capital】.

Background & how it works

Leasing spreads the cost of a new or used machine over its useful life, keeping the equipment off your balance sheet but often ending up at 8 %–12 % higher total cost than a loan [[Lease Foundation]]. Purchasing via a loan grants you ownership, allowing depreciation deductions (up to $1.22 million in 2026) and the freedom to sell or upgrade without lease restrictions [[GMI Insights]]—although the initial cash outlay is higher. Many practices compare both options by running a simple affordability calculation; you can see how an $80 k ultrasound machine would fit into your cash flow by using our free affordability calculator. If your practice is based in Atlanta, you can explore the local financing options that best suit your needs Atlanta financing path. For practices with less-than-ideal credit, you may still secure financing—see our guide on bad‑credit equipment financing possible.

Bottom line

In 2026 you can acquire essential diagnostic or therapeutic machinery with a 48–84 month loan, 9–13 % APR and 15–20 % down—no credit hit—and get approved in just a few weeks. Get your exact rate with a quick check.

Disclosures

This content is for educational purposes only and is not financial advice. financingmedicalequipment.com may receive compensation from partner lenders, which may influence which products are featured. Rates, terms, and availability vary by lender and applicant qualifications.

Sources

• Crestmont Capital
• Precedent Research
• Lease Foundation
• GMI Insights