Resonex funds MR deals with new line of credit

Resonex is financing leases for four RX 5000 MR systems througha new $5 million credit line secured in October from TechnologyFunding, a San Mateo, CA, venture capital company.

Two of the 0.2-tesla units were leased by Massachusetts imagingcenters before the Radiological Society of North America showthis month, according to Timothy R. Christofferson, Resonex chieffinancial officer. Two other deals are pending with Californiaimaging centers. They were expected to be finalized this month,Christofferson said.

The leases were negotiated through Resonex Capital Corporation,a subsidiary organized about a year ago to give the company moreclout in qualifying their customers for credit, according to GeraldD. Knudson, Resonex president. Terry Fowler, who has 20 years'experience in investment banking with Comdisco, Seafirst in Seattle,as well as other companies, heads the capital group.

Technology Funding raises funds through sales of public partnerships.The $5 million credit line will be replenished as the leases areresold to secondary financial markets, Christofferson said.

The new service will speed future equipment sales negotiationsfor Resonex, according to Knudson. It previously took Resonexup to six months to arrange third-party funding for the kind ofdeals his firm closed in the past two months, he noted.

"This arrangement with Technology Funding levels the playingfield between us and the General Electrics of this world. It meanquicker delivery," Knudson said.

Many Resonex sales have been financed by major players in themedical equipment credit and leasing business. Chicago's LINCGroup, which is an equity investor in Resonex, has financed about$10 million of its equipment, according to Knudson.

Chrysler Credit funded about $8 million of Resonex equipmentbefore dropping out of the medical equipment market a year ago.Resonex's customers have also financed their purchases throughMetlife, Southeast Bank and Sanyo.