How Canadian clinics and hospitals can finance imaging and surgical equipment upgrades using leases, refinancing, and smart working capital.
Short answer: Most Canadian clinics, imaging centres, and surgical facilities are better off leasing big-ticket equipment like MRI scanners, CTs, C-arms, and OR towers, while using separate term and working-capital facilities for build-outs, software, and ramp-up costs. The winning strategy is to match the life of the technology and your patient volumes with the right mix of equipment leases, asset-based lending, and sale-leaseback — not to drain cash or rely on short-term, high-cost credit just to keep up with medical innovation.
Upgrading imaging and surgical tech isn’t optional anymore — it’s how you stay relevant and keep patients in your system — but the price tags are large and the ROI timeline is long.
Canada’s health spending is projected around $344 billion in 2023, roughly 12.1% of GDP, and capital needs in hospitals and clinics remain high as technology evolves. The medical devices market (excluding diagnostics) is estimated at about US$10 billion and growing at roughly 5% annually.
At the facility level, that translates into serious numbers:
Meanwhile, the revenue side has its own constraints. In 2022–23, the average cost per MRI exam was about $762, and $310 for CT in Canadian private imaging facilities. Those fees need to cover staffing, rent, utilities, IT, and the capital cost of the equipment itself.
In that environment, tying up $500,000–$2,000,000 in upfront cash is rarely a smart move — especially for private clinics, diagnostic centres, surgical hubs, and physician partnerships. Providers across Canada are turning to leasing and structured financing to lower upfront strain, preserve cash, and stay current with rapidly evolving imaging and surgical tech.
The rest of this guide walks through how to do that thoughtfully, from a Canadian credit perspective.
The simplest way to think about this: don’t fund a 10-year asset with a 10-month product.
Big imaging and surgical assets are:
Those characteristics point toward long-term, asset-backed structures, not credit cards, merchant cash advances, or short-term online loans.
For most healthcare providers, that means:
From a lender’s chair, that makes sense: the more your payments are backed by real equipment and predictable exam or procedure volumes, the happier everyone — including your future self — will be.
Key point: Leasing spreads the cost of high-tech equipment over its useful life, keeps your cash and bank lines available, and gives you flexibility when technology changes.
As a rule, if it has a serial number and a clear clinical and resale value, it probably fits inside Mehmi’s eligible equipment criteria. In imaging and surgery, that can include:
A Mehmi equipment lease typically allows you to:
In other words, the Siemens, GE, Philips, Canon, Hologic, Stryker, or Karl Storz logos on the side of your machine do a lot of heavy lifting in the credit decision — as long as the numbers and structure make sense.
If you’re planning a staged upgrade — say, replacing ultrasound systems this year, a CT in two years, and endoscopy towers after that — an equipment line of credit can make life easier:
For groups rolling out multiple imaging centres or expanding an ambulatory surgery brand, this kind of structure creates predictability for both the medical team and the finance team.
Most major OEMs and specialty distributors in healthcare have their own financing programs — but those don’t always give you the flexibility you want for term, covenants, or cross-collateralization with other assets.
A vendor program via Mehmi lets you:
Key point: If your clinic or hospital already owns good equipment, you may be sitting on the collateral you need to pay for the next wave of technology.
In asset based lending (ABL), the lender advances a percentage of the orderly liquidation value of your equipment fleet, not just what happens to be on a bank’s general security agreement.
For a multi-site group with:
…ABL can unlock a significant pool of capital you can use to:
With medical devices, the underlying market is sizable and relatively liquid; Canada’s medical devices market is estimated at US$10+ billion and growing. That supports the case for asset-backed facilities when structured properly.
If you’ve paid cash for certain systems, or your previous financing is nearly done, a refinancing or sales leaseback can be a smart way to “recycle” capital:
This is especially powerful when you’re moving from, say, a 16-slice to a 128-slice CT, or from a conventional C-arm to a biplane system. The older device might still be clinically useful — and therefore financeable — even if it’s no longer your “flagship” machine.
Key point: Imaging or surgical upgrades are never just about the machine. You also need money for construction, software, training, and ramp-up — and those should sit on different facilities than the equipment itself.
When you plan an upgrade, factor in:
Putting all of that onto one long-term equipment lease tends to muddle the picture. Instead, consider:
One strong opinion: avoid funding permanent assets (like a CT gantry or OR tower) with ultra-short-term products such as merchant cash advances. Those tools may have a place for very short-term gaps, but they are a poor match for multi-year clinical technology investments.
Key point: The way you structure the deal affects not just cash flow but also tax and the optics of your balance sheet — which matters to partners and lenders.
On the tax side, the Canada Revenue Agency’s Capital Cost Allowance (CCA) system governs how you depreciate purchased medical equipment:
If you buy equipment outright or with a traditional loan, you claim CCA over time and deduct interest. If you lease equipment, the lease payments themselves are usually deductible as an operating expense, while the equipment doesn’t sit on your balance sheet in the same way (subject to accounting standards and lease type).
There’s no one “right” answer — it depends on your corporate structure, income profile, and long-term plans — but it’s almost always worth having your accountant weigh in before you finalize a large imaging or surgical financing package. Mehmi’s calculator can help you model payments, while your accountant helps you understand the after-tax impact.
Key point: A good healthcare equipment deal is about three things: the quality of the asset, the predictability of the revenue behind it, and the professionalism of the operator. The credit score is only one chapter.
When underwriting imaging or surgical equipment, lenders typically focus on:
High-quality, mainstream platforms with strong manufacturer support are much easier to finance competitively than niche or end-of-life models.
CIHI and the Canadian Association of Radiologists have both highlighted the importance of targeted investment in imaging capacity to meet demand and reduce wait times — but that investment has to be grounded in realistic volume projections, not wishful thinking.
For larger tickets, lenders may also want to see your assumptions for exam volumes, procedure mix, and staffing costs around the new equipment.
Part of Mehmi’s role is to make sure your equipment financing and business-loan facilities line up properly instead of tripping over each other.
Key point: Treat your next upgrade like a capital project with a financing strategy — not like a large one-off purchase you scramble to fund.
Here’s a practical roadmap you can use whether you run a diagnostic imaging centre, a surgical clinic, or a multi-site medical group.
Before you talk brands and models, answer:
Your equipment should fit a clear service plan, not the other way around.
Include:
This is where clinics often under-budget. If necessary, tap into Mehmi’s FAQ or blog resources or talk directly with vendors to make sure nothing obvious is missing.
As a rough rule:
Your Mehmi advisor will help map this into equipment leases plus the right blend of working capital and secured support.
Use the calculator to:
If the plan only works in a perfect scenario, it needs to be resized or re-sequenced.
Before you sign a lease or construction contract:
You don’t want to discover late in the game that your bank’s general security agreement is blocking a critical lease, or that a small covenant breach will derail everything.
Once your upgrade is live:
Mehmi’s role is to be a partner over those cycles, not just a one-time funding source.
Profile (details changed for privacy)
The challenge
The centre’s 16-slice CT was becoming a bottleneck with frequent downtime, and competitors were marketing higher-slice scanners with shorter exam times and better image quality. Ultrasound systems were also due for replacement.
The owners wanted to:
Total project cost approached $3 million once construction, IT, and training were included. The group had some cash and an existing bank line, but didn’t want to:
The financing strategy with Mehmi
Working with a Mehmi advisor, they built a layered structure:
Results 18 months later
The key wasn’t a single “magic” product; it was a deliberate mix of leases, sale-leaseback, and working-capital tools aligned with how the centre actually earns revenue.
For most Canadian clinics and surgical facilities, leasing is the better default for big-ticket equipment. A Mehmi equipment lease spreads costs over the useful life of the device, preserves cash for staff and supplies, and often gives more flexibility when technology changes. Buying outright may make sense if you’re cash-rich, very stable, and working closely with your tax advisor — but it’s usually not the starting point.
Yes. As long as the equipment is from reputable vendors, properly refurbished, and supported, many funders will finance pre-owned MRI, CT, ultrasound, C-arms, and OR equipment. Mehmi can help you assess whether your list fits eligible equipment criteria and whether a lease, asset based lending, or a sale-leaseback structure makes the most sense.
It depends on your credit profile, equipment type, and overall structure. Some deals can be done at or near 100% financing, while others may require a modest deposit or first-and-last payments up front. A stronger practice balance sheet and solid projections can reduce the equity required. Using a calculator and talking with a Mehmi advisor early will give you realistic expectations before you sign vendor quotes.
Often yes. If you own equipment outright or have low remaining balances, refinancing or sales leaseback can unlock capital while you continue using those assets. Combined with new equipment financing and a tailored working capital loan, this can fund significant upgrades without draining cash.
Purchased equipment is usually depreciated through the CRA’s CCA system — often Class 8 at a 20% rate for larger medical office equipment, while small instruments under $500 can be fully written off under Class 12. Lease payments are often deductible as operating expenses instead. The best approach depends on your structure and income; Mehmi can help with the financing side, and your accountant should advise on CCA and tax planning.
Your primary bank is important for day-to-day banking and some credit facilities. But when you’re planning significant imaging or surgical upgrades — especially across multiple sites — a specialist like Mehmi offers:
If you’re facing a major capital decision in the next 6–18 months, it’s worth having Mehmi review your plan via Contact Us before you commit.
.avif)
.svg){kind=small}