Medical Equipment Financing
The decision to buy a new piece of medical equipment can be intimidating. The cost to purchase a new piece of medical equipment is typically high and odds are that your new piece of equipment will be obsolete in 3 years or less. These days, it seems as if financing your medical equipment is the way to go. And you may be right.
Benefits of Medical Equipment Financing
Here are a couple of quick considerations for why you may want to finance or lease your Medical Equipment:
- Preserve Valuable Cash
- Flexibility of Keeping or Returning Equipment
- Avoid the Pitfalls of Technical Obsolescence
- Potential Tax Benefits
- Improves Debt Ratios
- Fixed Rate and Payment Options
- Up to 100% Financing
As always, and especially today, cash is king. If you can manage to finance your largest assets and save your cash for other working capital needs, your business will be able to stay ahead of the pack. The most important thing to keep in mind is that your medical equipment is an income producing asset, it will pay for itself.
Types of Medical Equipment
Generally speaking, most medical equipment is considered to be good collateral. Larger pieces of equipment like the ones mentioned below can be financed up to 5 years:
- CT Scanners
- MRI’s
- Mammogram Machines
- Ultrasounds
- Radiation Machines
- X Ray Equipment
Other equipment such as the pieces mentioned below may end up being financed for 3 years or less:
- Sterilizers
- Monitoring Equipment
- Computers
- Software
- Portable Medical Equipment
As you already know, medical equipment technology is constantly changing. Unless you know ahead of time that you will be keeping your equipment for certain, the best idea would be to choose a lease financing option that gives you the flexibility to keep or return the equipment at the end of term. This will allow you to avoid the pitfalls of technical obsolescence. And if you can afford the payments, it may also be a good idea to choose a shorter financing term in order to avoid committing your business to a long term lease or loan, only to find out that you would like to swap the equipment our for something new.
