Case Study - equigroup Healthcare Equipment Finance

Envision Medical Imaging, a new radiology partnership, approached Commonwealth Bank Healthcare Banking to provide a range of financing and banking solutions for its new highly specialised Greenfield radiology practice in the inner suburbs of Perth. Specific equipment requirements ranged from high-end diagnostic imaging machines, fit-out and information technology infrastructure and software that required in some instances progressive funding to the vendors.

Timing for the financing was of the essence and following the initial client enquiry the Commonwealth Bank Healthcare Banking team engaged equigroup to form the deal team for the project.

Client objectives

  • Committed comprehensive banking facilities required within 10 business days from enquiry
  • Blend of equipment finance solutions to match with their effective life expectations for respective modalities
  • Mitigation and management of obsolescence risk to the partnership for their high-end equipment
  • Form a relationship with a principal financier who genuinely understood the nuances of the radiology sector

Client situation

  • Greenfield radiology practice with no business history, founded by three of the leading radiology and cardiology specialists in the Perth market
  • One prime site fully equipped with cutting edge equipment and several satellite sites
  • Capacity to progressively pay the vendors during the construction of the practice
  • Broad spectrum of asset classes including high-end diagnostic imaging equipment, longer life equipment, information technology (hardware and considerable software) and fit-out



equigroup, working closely with Commonwealth Bank Healthcare Banking undertook the following to execute on the client’s stated deliverables:

  • Provide comprehensive industry background, commentary on cashflow forecasts and equipment collateral valuations to facilitate the credit approval process
  • Utilising our intimate industry knowledge, review of the client’s equipment life and technology expectations through open and informed discussions
  • Presentation of various equipment finance options across the entire equipment expenditure, allowing the client to make an informed choice of the most suitable product for each equipment category and modality
  • Master Rental Lease facility for high-end diagnostic imaging equipment that will allow the client to meet its leading edge technology strategy at an implicit funding rate significantly below traditional debt and with considerable whole-of-useful-life cashflow savings
  • Funding of significant component of software costs (RIS/PACS systems) as part of the core infrastructure of the practice
  • Master Commercial Hire Purchase facility for longer life core infrastructure such as practice fit-out
  • Management of progressive payment requirements and also advice with respect to industry norms for vendor payment terms that delivered cashflow timing benefits for the client


Client outcomes

  • The client received approved facilities within desired timeframe meeting targeted ‘go-live’ objectives
  • Funding was provided for all progress payment requirements so the client did not have to tie up initial equity
  • Key strategic diagnostic imaging equipment was financed for periods ranging from 4 – 5 years under an operating lease providing the required flexibility and outsourcing of obsolescence risk management
  • Long life infrastructure equipment financed over 5 years with control of these assets vesting with the client



For our healthcare client, their journey meant a comprehensive and flexible solution to the entire equipment financing needs of the new practice – specifically understanding and matching financing products and terms to their equipment expectations. No other financier was able to deliver the breadth of solution, and the outcome delivered to Envision Medical Imaging showcases the benefits of specific industry expertise and specialisation for our clients.

Important information: Applications for finance are subject to the Bank’s normal credit approval. Full terms and conditions are included in the loan offer. Bank fees and charges are payable.