Veterinarians have been the beneficiary of many pet owners considering their dog, cat or other animal to be an important part of the family. In addition to providing routine healthcare services, improving medical technologies and procedures have enabled veterinarians to offer enhanced diagnostic tools to perform specialized medical procedures in-house—and grateful “parents” are happy to pay the cost to keep their “loved ones” healthy.
Industrywide revenue has grown at a compound annual growth rate of almost 5% over the past five years and is expected to continue to climb but some veterinarians will need to invest in their practices to flourish. Equipment financing for veterinarians is an excellent option for those who need to upgrade existing equipment or make new purchases to continue serving patients at the highest possible level.
Top Considerations Before Applying for Equipment Financing
While some veterinary equipment is required at any practice, other pieces fall into the category of “nice to have,” including equipment to serve the widest variety of animals. Veterinarians should perform a cost-benefit analysis on any proposed equipment purchases to ensure the outlay is worth it. There’s little benefit to investing in a state-of-the-art piece of equipment that will only be lightly used but the right piece of cutting-edge equipment could be a gamechanger for the practice.
Why Equipment Financing Works Well for Veterinarians
In addition to normal office equipment such as computers and printers, a thriving veterinary practice requires everything from animal crates, scales and veterinary monitors to more sophisticated diagnostic and surgical equipment. Equipment financing works well for veterinarians when the time comes to upgrade existing equipment or make new purchases because the equipment can be purchased and paid for over time—as it is making money for the practice—instead of requiring a full cash payment upfront.
What Other Business Loans Veterinarians May Want to Consider
While equipment financing has plenty of benefits, there are other business loans that may be right for veterinarians, including:
- Traditional term loans—A lump sum of capital that is paid back with regular installments at a fixed interest rate
- Working capital loans—A loan that can assist with the daily costs of operating the practice
- Merchant cash advances—An upfront sum of cash received against the practice’s future credit and debit card revenues and repaid by a predetermined daily percentage of those revenues
- SBA loans—The hardest type of loan for which to qualify, providing cash to expand a practice, increase or replace inventory, advertise, consolidate debt and even pay taxes
The Bottom Line
Most Americans consider their pets as cherished family members so they are willing to do what it takes to keep them healthy for as long as possible. This means operating a veterinary practice can be very lucrative, especially if you make smart decisions about growth as time goes on. Not having funds on hand to ensure you have the latest equipment should never be a reason to stagnate. There are plenty of options available to secure the funding you need to ensure your veterinary practice “purrs” along nicely.
Clear Skies Capital has helped many veterinarians determine the business loan that’s best for them and get the financing they need in a timely fashion. Contact us today at 800-230-9822 to discuss your practice’s needs.