When a physician needs to completely outfit a professional medical office with medical equipment and technology, is building a new medical facility or is expanding an existing practice, there are several financing options. He or She can pay cash for their medical equipment, secure local bank financing or lease the equipment.

Physician Finance Consulting is available FREE of charge to discuss financing options and consult on which solution best fits your business.

Leasing

Why is leasing the preferred method of financing for most medical and healthcare equipment purchases?

Equipment leasing allows you to finance 100% of the equipment purchase price including ancillary costs like software, training, installation and shipping. Leasing can also allow for flexible terms and payment structure, so if you need time to build your practice you can start fully equipped while making small monthly payments at the beginning of the lease and make larger payments when the equipment begins to generate income.

Medical equipment leasing is the number one type of medical equipment financing. It is very important to be an informed finance consumer. Physicians growing a practice depend on up to date technology, equipment and services to provide first rate care to patients and maintain a healthy business. You need to ensure the ability to acquire equipment while maintaining positive cash flow and conserving capital.

Leasing vs Bank Loans

One major difference between equipment leasing and bank loans is how the debt is secured and the implications to your personal credit score. A bank loan requires collateral to secure the debt. Assets such as your home, your business, your car or boat can be used to ensure that you pay back the money you have borrowed and your personal assets may also have a lien or the loan may be linked to your personal credit. This can affect your personal credit score and your ability to borrow for personal reason. Since leased equipment is its own collateral, most leases can be structured so that your personal assets and your personal credit are protected.

Why is that important? When a large loan for medical equipment is recorded as debt on your personal credit, it affects you ability to make large future personal purchases like a home, boat or car.

Equipment Leasing: