The rapid innovation of medical products have increased demand among hospitals and health care providers. According to IBIS World, the industry has grown on average by 3.7% between 2015 – 2020. In fact, the market size of the medical supply industry in Canada is worth approximately 22 billion dollars. Given the market outlook of the medical supply industry, being a medical supply distributor can be a lucrative business.
Whether you’re an established or novice medical supply distributor, a business loan can be a valuable tool on your journey toward success. A business loan can help you pay off your various property and sales taxes, as well as financing the cost of the land your distribution location is built on, all of which can be expensive. In fact, there are limitless other possibilities for the use of your loan, including:
As a medical supply distributor, you’ll need to find the right supplier, then finance the cost of overseas and/or cross-country shipping, as well as the packaging and delivery of your items.
Purchasing items from your supplier. Learn how to create a purchase order.
Often distributors will have to deal with a surplus or a shortage of supplies, which can increase inventory costs. For a medical supply distributor, you may find yourself with a surplus or a shortage of surgical tools, first-aid kits, treatment chairs, instruction manuals, sterilization chemicals, canes/wheelchairs and other reduced mobility items.
Every business requires support to properly run its business operations. As a medical supply distributor, you’ll need to hire and train shipping and warehouse personnel, marketing staff, customer service staff and more. You may also need to hire technicians to install and repair a large assembly line for your warehouse.
Buying the necessary warehouse equipment such as forklifts, electric pallets, cargo stackers, rolling ladders, shelving, trolleys, safety gear and other tools are essential to your business. You may also need to finance the costs of buying and maintaining a line of distribution/supply trucks.
Marketing your business is necessary to gain awareness and build sales. You may need to finance the advertising items and distribute them throughout various medical facilities such as senior living residences, hospitals, clinics, dental practices, sports arenas, pharmacies, and more.
| Amount | APR | Term (months) | ||
 | 1k-300k | Fee-Based: Starting at 9% | 12- 60 | Learn more |
 | 5k-300k | 8% – 29% | 6-18 | Learn more |
 | 1k-500k | +5.9% | 3-60 | Learn more |
 | Up to 300k | 8%-22% | 6-12 | Learn more |
 | 5k-500k | - | 6-18 | Learn more |
 | 100K + | 6.05% + | 60 | Learn more |
 | 5K-100k | 15%+ | 12-18 | Learn more |
Before applying for a business loan, it’s important to calculate your cost of borrowing. Understanding how much you can borrow can save you from taking on more debt than you can handle. Here are the four main factors to consider when calculating the cost of your business loan.
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A business loan is a versatile form of credit that can be used to finance any expense or project. However, there are many alternative business funding options, each with its own benefits and drawbacks. Depending on your needs, one may yield better results than the other.
If you need to purchase an expensive piece of equipment, an equipment loan can be a better choice as it usually offers lower rates and is easier to qualify for. The reason is, the equipment you purchase is used as collateral to secure the loan. However, unlike a business loan, lenders are usually only willing to finance up to 80% of the equipment price, so you need to pay the other 20% upfront or find another form of credit to fill the gap.
As a B2B, you’ll likely deal with slow invoices that can disrupt your cash flow. Invoice factoring can help you access these funds by selling your slow invoices to a lender at a discount. While the discount rate can be quite high, it is a fast and easy way to fund your business.
When running a business you’re bound to run into unexpected expenses. While some expenses can be deferred others may require immediate attention. In such circumstances, a business line of credit can come in handy. It’s a reserve of cash that you can access at any point in time up to a credit limit. Moreover, interest is only charged on the amount you use and like a credit card you can reuse the funds as you pay it back.
Securing a business loan through us is not only easy, but it’s also just plain convenient. With most banks, your applications can take days, even weeks to process, only to get declined when your financial status is not up to their lending standards. However, when you apply at Loans Canada, you’ll be eligible for:
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