Should I buy, finance, or lease equipment for my clinic?

Each approach trades off differently. Paying cash avoids all financing cost but ties up capital and offers no monthly-cash-flow cushion during ramp-up. A business loan spreads the cost and gives day-one ownership but carries interest. Leasing equipment keeps that obligation separate from the main loan and preserves loan capacity for leaseholds and working capital, at the cost of a lease premium. KlinDeck's tool models all four structures from the operator's own cost and rate inputs so the monthly obligation and total cost can be compared directly. It is a planning reference, not a recommendation or a lender assessment.

Can leasehold improvements and working capital be leased?

Generally no. Leasehold improvements and working capital are typically financed through a business loan or paid with cash, not through an equipment lease, because a lease is secured against a movable asset. Clinical equipment, furniture, fixtures, and technology hardware can usually be purchased, financed, or leased. KlinDeck's tool applies these category rules when building each financing scenario; actual eligibility depends on the lender and the specific assets.

How much equity do lenders expect for a clinic loan?

Published lender program guidelines commonly look for a minimum owner equity contribution, often cited in the range of roughly 15 to 25 percent of project cost, with programs such as Canada's BDC and the US SBA generally preferring the higher end. Actual requirements depend on the lender, the program, the collateral, and the full application. KlinDeck's tool expresses entered equity as a percentage of total project cost and flags how it compares to those general guideline ranges; this is reference information, not an assessment of eligibility.

What loan and lease rates does the tool use?

Rates are operator-adjustable inputs. The defaults are estimates based on current prime rate plus published program spreads (for example, Canadian BDC and CSBFP context, and US SBA published caps) and illustrative clinical-equipment lease ranges, and KlinDeck's overall methodology is described on its published data methodology page. Actual loan terms, lease rates, and approval depend on the borrower's credit profile, collateral, and lender discretion. The tool uses standard amortisation formulas and is for planning reference only, not financial advice.

✓ Pre-filled from your Cost Estimator. Cost categories have been loaded - review and adjust as needed before running the analysis.

Step 2 of 3 - Capital Structure

Buy, Finance, or Lease?
Structure Your Capital Intelligently

Buying equipment outright, financing everything, leasing the equipment and borrowing the rest - each approach has a different monthly cost and a different long-term price tag. Compare all four side by side before you decide.

4 Capital Scenarios Full Cost Breakdown Feeds Profitability Model US & Canadian Programs

Market:

Your Startup Costs

By financeable category

Each cost category has different financing rules. Leasehold improvements and working capital must be financed via a business loan. Equipment can be leased, financed, or purchased. Soft costs are typically cash-only.

Leasehold Improvements / Build-Out Renovation, fit-out, plumbing, electrical, medical gases, flooring. Enter your net cost after any tenant improvement allowance from your landlord - not the gross build-out cost. 💼 Loan or Cash Only - cannot be leased

$80,000

$0$400K

Equipment Purchase Cost Clinical equipment, furniture, fixtures, technology hardware ✓ Cash, Finance, or Lease - all options available

$60,000

$0$400K

Working Capital Reserve Cash buffer to cover operating expenses while revenue ramps (typically 3-6 months) 💼 Loan or Cash Only - cannot be leased

$40,000

$0$200K

Soft Costs Legal, licensing, insurance, technology setup, computers, EMR, signage, staff onboarding, marketing launch, supplies, deposits - cash-first, remainder rolled into loan if needed Cash-first - any shortfall rolls into loan base

$25,000

$0$100K

Your Available Capital (Equity Injection) Cash you can contribute - affects which scenarios are viable

$50,000

$0$500K

Financing Parameters

Rates and terms for modelling

Business Loan Rate (Annual) BDC startup loan estimated rate: 9.2% (prime + 3.5% + 0.25% term premium)

9.2%

5%18%

Business Loan Term BDC max 7yr / CSBFP max 10yr for eligible costs

7yr (84 months)

1yr10yr

Equipment Lease Rate - $1-Buyout / Full-Payout (Annual APR) Models a full-payout lease that amortises the entire equipment cost. Fair-market-value leases with residual values price lower and are not modelled here. Published clinical-equipment ranges are typically 7-12% APR.

9.0%

4%18%

Equipment Lease Term

5yr (60 months)

1yr7yr

Clinic Stage

Specialty

Compare all 4 scenarios · Free · Feeds your profitability model

📊

Your Capital Structure Analysis

Enter your cost categories and click Analyse to compare all four financing scenarios side by side.

Select Your Capital Structure - Click to Choose

Full Analysis

Unlock the Complete Capital Structure Report

See the sensitivity comparison table, 5-year cost chart, scenario context, risk flags, and have your chosen scenario automatically pre-fill the Profitability Calculator.

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Sensitivity Analysis - All Four Scenarios

Scenario	Monthly Obligation	Cash at Opening	Interest & Lease Premium	Total Cost to Own (Assets)

Total Cost to Own (Financed Assets) by Scenario

Your chosen scenario has been pre-filled into the Profitability Calculator. Click below to see owner take-home after debt service.

Continue to Profitability Model → ← Back to Cost Estimator

What Comes Next

💰

Model Your Profitability

Your chosen capital structure sets your monthly debt service. Now see owner take-home after all obligations. Understanding your loan-to-cost alongside your operating margins gives lenders and advisors the full picture they need.

Profitability Calculator →

📊

Benchmark Your Assumptions

See how your projected margin compares to published benchmarks for your specialty. Compare your revenue assumptions against published benchmarks before approaching a lender.

Performance Benchmarks →

🎯

Understand the Asset You're Building

You're borrowing to build something that will have value. The practice valuation reference shows what a clinic with your earnings profile might be worth - the loan-to-value context that completes the lending picture. Educational reference only.

Practice Valuation Reference →

Planning reference - not a lender assessment. Scenario costs use estimated rates and standard amortisation formulas. Results are sensitive to the rates and cost figures entered - actual loan terms depend on your credit profile, collateral, and lender discretion. Verify all figures with your lender or advisor before committing to any financing structure.

Disclaimer: This tool models financing scenarios using standard amortisation formulas and published program rate estimates. Actual loan terms, lease rates, and lender decisions depend on your credit profile, collateral, business plan, and lender discretion. BDC and CSBFP rates are estimates based on current prime rate plus published program spreads. SBA rates reflect published caps. Equipment lease rates are illustrative industry ranges. This tool does not constitute financial advice. The comparison is pre-tax: loan interest, depreciation or capital cost allowance, and lease payments receive different tax treatment that can change the ranking between scenarios - confirm the after-tax picture with your accountant. Verify all terms with your lender before committing to any financing structure.

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Buy, Finance, or Lease?Structure Your Capital Intelligently

Unlock the Complete Capital Structure Report

Buy, Finance, or Lease?
Structure Your Capital Intelligently