The Lending Market for Free-Standing Diagnostic
Imaging Centers Has Tightened

In the aftermath of the recent Chapter 11 filing of DVI, Inc. and its related subsidiaries (DVI Financial Services, Inc. and DVI Business Credit), the market for lending to diagnostic imaging centers, particularly start-ups, has just gotten tighter. The prospects of this tighter market lasting for the near to medium term are excellent.

How Will The Tighter Market Manifest Itself?

Here's what you will likely see:

  • Non-recourse financing structures near to impossible to find, while limited recourse structures are only hard to find.
  • Interest rates may rise to reflect the risk that lenders now believe is inherent in this market segment
  • The lenders will likely ask for more equity.
  • Lenders will seek to finance equipment only or equipment mostly, leaving the financing (or providing) of tenant improvements and working capital to the owners of the project, their landlord or others.

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