Choose Medical Equipment Finance To Remain With Technology Advancement

medical equipment lease

By Shilpi Sharma

Equipment leasing has become a better advantage with everyone of us. With technology advancement in every field, it has got hold of medical community too. Medical equipment can be so expensive and out of date in a matter of a few years that everyone is opting for medical equipment finance these days. Cash flow and patient care are the two major concerns on the mind of people who are into this business. It is a very sensible thing for hospitals and private physicians to do to keep up with the technology and provide their patients with the best health care.

You have option to buy the equipment anytime during the lease or even at the end of the leasing term. In this way you can know whether the equipment will be beneficial for you in the coming years before you make a huge cash investment. The biggest advantage is that you are able to keep the state- of -art. This ensures optimum patient care and improves profit. If you had the right medical equipment finance, you would earn quite a bit of revenue as your patients will be getting better equipped facilities and the diagnostic tools at their disposal for tests. What more you can expect when your obsolete equipment is replaced with a newer one with latest technology. Moreover, you are not stuck with an instrument that you cannot use any more or even resell.

You can acquire sonogram, endoscope, ultrasound equipment,surgery tools, oxygen tanks, optometry equipment, orthopedic equipment,medical beds, oxygen machines, wheel chairs, x-ray film processing equipment and so on easily with the help of a reliable equipment leasing company. When it comes to big hospitals or health care institutes, medical accounting equipment becomes essential for handling accounts receivable, payable and with other accounting roles too. It is indispensable for big health care institutes and seeking the help of financing company to acquire this equipment is necessary.

Typical lease terms are for 6 months to five years. And it is best if your cash is strapped or you want to conserve your cash for business. This will enable you to obtain the needed piece of equipment without a major cash outlay.

For more information about equipment leasing. Please follow the link Equipment Finance

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medical equipment lease

Tax and Cash Flow Benefits of Leasing Medical Equipment

medical equipment lease

By Kent Harlan

Today's healthcare provider must depend upon very expensive equipment to function and grow their practices and leasing is a common means of financing. As medical technology is ever changing and new equipment enhancements are developed, renting equipment is a logical choice for a variety of reasons. Medical equipment leasing can keep their balance sheet intact, as monthly equipment lease payments can be classified as operating expenses. This would also allow the provider to benefit from tax deductibility.

According to industry research, over $3 billion of medical equipment was leased last year in the United States. In its simplest form, the lessor purchases the equipment and then rents it to the lessee. At the end of the lease term, the lessee has the following choices:

· Buy the equipment

· Re-lease the equipment

· Rent new equipment

· Return the equipment

The worth of medical equipment does not come from owning it, but rather from the results of its use. With renting, there are no large down payments so the lessee's capital reserve remains intact. Equipment is also more easily attainable than from bank financing, which requires extensive documentation and even personal guarantees. Most any piece of medical equipment can be leased, including CT scans, surgery tools, lab testing machines, x-ray machines, heart rate monitors, and sonograms.

Other benefits from leasing medical equipment:

Flexibility: As the provider's practice grows and equipment technology increases, leasing allows for the owner to easily add-on or upgrade their package. It is important to build in upgrade features at the inception of the lease. Also, installation and maintenance, and other services can be added to the lease.

Speed: As opposed to bank financing, leasing can provide the needed equipment in a matter of days. Typically, a one-page lease agreement is executed and approval can occur in a matter of hours. It often takes bank loan committees several weeks to approve an equipment loan.

Tax Advantages: An operating lease (also known as a true lease) generally allows the lessee to write off 100% of lease payments made during the year. The equipment write-off is tied to the lease term, which can be shorter than IRS depreciation schedules, resulting in larger tax deductions each year. The deduction is also the same every year, which simplifies budgeting.

Keeping equipment "state of the art": As mentioned previously, structuring an add-on or upgrade provision in the lease is critical due to the ever-changing technological advances in healthcare. Adding these clauses in the lease agreement lessens the peril of being stuck with outdated equipment.

Maintains capital reserves: Leasing allows you to buy the equipment and tools you need today while spreading out all the payments over time. This provides you with a cash reserve for day to day expenses. Since a true lease is not a long term obligation, it will not show up on your balance sheet, so the company will be more attractive to a conventional lender when or if one is needed in the future.

A physician starting a practice or even acquiring one can benefit from entering into an equipment lease. Purchasing a medical equipment package can cost several hundred thousand dollars and put the provider behind the eight ball from the very beginning. Not only can medical equipment leasing alleviate that dilemma; it also provides budgetary, tax, cash flow, and upgrade benefits that can allow the provider to flourish for years to come.

Kent Harlan has been a CPA since 1984 and has provided consulting, accounting and financial services to several industries. He is the owner of Ozarks Capital Funding, LLC, a Springfield, MO based company offering financing in the area of alternative financing for business and healthcare.

Are you a healthcare provider in need of medical equipment financing?

email: kenth@ocflink.com
Website: http://www.ocflink.com
Phone: (417) 849-7394

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medical equipment lease