medical equipment lease
By Anthony Ferlazzo
We are enjoying the fruits of the exponential growth rate of medical equipment technology. The medical community may now offer diagnoses based on information about a patient’s condition that we couldn’t accurately obtain using older equipment. The problem is that most organizations capital budgets just can’t keep pace with the quickening of technology advances.
The problem is getting worse
If you’re like most medical care providers, you are facing the dilemma of how to provide cutting-edge care to your patients but don’t have the financial reserves (cash or credit) to make the purchase of new equipment. One could argue that it is economics that slows down the delivery of medical care. Standard accounting practices allow for the assets to be depreciated over five years. What do you do when the equipment needs to be replaced in some amount of time less than five years? One option is to try selling the outdated equipment on eBay or somewhere else in the open market.
There’s another solution
There is another option that many astute organizations use. They simply lease the equipment. Why lease? It’s all about cash-flow. Typical leasing standards require you to put just 20% down in cash, and there are some rather nimble leasing companies that will allow you to write 100% of the cost of the equipment as operating costs on your firm’s balance sheet. By treating the asset as an operating expense you don’t have to deal with depreciation on the leased medical equipment. Plus the lease does not show up on your credit report, possibly freeing you to make other necessary purchases.
Is leasing for you?
While most organizations need to be in business for at least 3 years, savvy shoppers can find leasing companies that have no time-in-business requirements. And even without documenting your financials you should be able to enter into leases up to $150,000. By providing a bit of financial information, you can lease items with a much higher dollar figure.
Does this sound like a viable option?
Typical lease terms are two to five years, and are affected by the typical useful life of the item you are leasing for your business. Some leasing companies have the flexibility to buy back newly acquired equipment assets and convert them into leases. Do you normally pay shipping, installation, training and other soft costs on top of the actually hardware? You can search out leasing companies that will include these items in the lease. Have a lease with unfavorable terms? Most do not know it, but you can actually “refinance” leases into one with more favorable terms.
If you’re strapped for cash, or just want to conserve it for other business purposes, leasing will enable you to obtain a much needed piece of business (medical or otherwise) equipment without a large outlay of cash.
Anthony Ferlazzo is a certified commercial mortgage expert. In addition to providing the medical community with financing, his company, Pronto Commercial Funding, offers unparalleled equipment leasing and receivable factoring solutions for hospitals. urgent care, medical and dental offices and condominiums, and other commercial facilities. See why 'We close everyday projects that banks turned away'.
medical equipment lease
Monday, November 16, 2009
Monday, October 12, 2009
Finance Or Lease When You Need Medical Equipment (medical equipment lease)
medical equipment lease
By J. Tom Williams
Healthcare facilities require lots of medical equipment. This is true of nursing homes, doctor offices, physician groups, hospitals and stand-alone clinics, to name a few. Today there are more options ever before for financing or leasing medical equipment (medical equipment lease). Understanding the differences and choosing the right financial vehicle instrument is critical to managing cash flow of the practice, maintaining the equipment, getting updated equipment, and disposing of it when no longer needed.
The major fork in the road for medical equipment is the choice between financing with loans or a program for medical equipment leasing (medical equipment lease). Both options are available from lenders across the country. Although both instruments achieve the goal of providing equipment to the medical practice there are some significant differences to consider. In particular a new form of financing - the Equipment Finance Agreement (EFA) - has gained popularity in the last few years.
An EFA is a loan document that takes the place of a loan agreement, note and security agreement. In essence it makes the lender the lien-holder and puts a security interest against the equipment. Once an EFA is completed, your business owns the equipment from day one.
A Lease is simply a contract conveying property to another for a specified period of time. In this contract your business acquires the use of, but does not own, the equipment in question. You usually will have the option to purchase the equipment at the end of term - or to return it to the provider.
You may want to have the option to purchase the asset, continue leasing it, or send it back at the end of the lease term. The $1.00 out lease is extremely popular with businesses in the United States. It allows a business to know it will be paying $1.00 at the end of the lease to transfer the asset from the leasing company to the business. This is especially popular with equipment that might lose value quickly or become obsolete such as computers. In the case when there is a residual associated with the lease it is generally considered a Fair Market Value Lease. Obviously, this option is not available in an EFA because you have already purchased the equipment.
Some lenders like the benefit of the EFA because it protects them from liability. For example, in vehicles or equipment that have inherit risk lenders have less legal exposure because they have no ownership in the asset and are merely a lien-holder on the asset. Some lenders are also more lenient in allowing prepaying the EFA as opposed to the lease since it is in fact a form of loan.
Remember the following facts about these agreements when making your decision. An EFA is a loan and a Lease is a rental that might have a purchase option.
Read the contract carefully before you sign. It should be very apparent which kind of contract you are in. One will say "Lease" and other will say "Finance". If you know what you want ask your lender. By understanding the benefits of each structure your business can maximize profit and minimize your headache at the end of the contract especially in a lease. Make sure you understand the end of term options in advance and choose the agreement that suits the needs of your facility.
Tom Williams is President of eLease Equipment Leasing. He was inducted into the Leasing Hall of Fame for his work pioneering the use of the world wide web to help entrepreneurs fund their businesses. He has a degree in Economics from Boston University. Tom writes regularly on his blog about medical equipment leasing.
medical equipment lease
By J. Tom Williams
Healthcare facilities require lots of medical equipment. This is true of nursing homes, doctor offices, physician groups, hospitals and stand-alone clinics, to name a few. Today there are more options ever before for financing or leasing medical equipment (medical equipment lease). Understanding the differences and choosing the right financial vehicle instrument is critical to managing cash flow of the practice, maintaining the equipment, getting updated equipment, and disposing of it when no longer needed.
The major fork in the road for medical equipment is the choice between financing with loans or a program for medical equipment leasing (medical equipment lease). Both options are available from lenders across the country. Although both instruments achieve the goal of providing equipment to the medical practice there are some significant differences to consider. In particular a new form of financing - the Equipment Finance Agreement (EFA) - has gained popularity in the last few years.
An EFA is a loan document that takes the place of a loan agreement, note and security agreement. In essence it makes the lender the lien-holder and puts a security interest against the equipment. Once an EFA is completed, your business owns the equipment from day one.
A Lease is simply a contract conveying property to another for a specified period of time. In this contract your business acquires the use of, but does not own, the equipment in question. You usually will have the option to purchase the equipment at the end of term - or to return it to the provider.
You may want to have the option to purchase the asset, continue leasing it, or send it back at the end of the lease term. The $1.00 out lease is extremely popular with businesses in the United States. It allows a business to know it will be paying $1.00 at the end of the lease to transfer the asset from the leasing company to the business. This is especially popular with equipment that might lose value quickly or become obsolete such as computers. In the case when there is a residual associated with the lease it is generally considered a Fair Market Value Lease. Obviously, this option is not available in an EFA because you have already purchased the equipment.
Some lenders like the benefit of the EFA because it protects them from liability. For example, in vehicles or equipment that have inherit risk lenders have less legal exposure because they have no ownership in the asset and are merely a lien-holder on the asset. Some lenders are also more lenient in allowing prepaying the EFA as opposed to the lease since it is in fact a form of loan.
Remember the following facts about these agreements when making your decision. An EFA is a loan and a Lease is a rental that might have a purchase option.
Read the contract carefully before you sign. It should be very apparent which kind of contract you are in. One will say "Lease" and other will say "Finance". If you know what you want ask your lender. By understanding the benefits of each structure your business can maximize profit and minimize your headache at the end of the contract especially in a lease. Make sure you understand the end of term options in advance and choose the agreement that suits the needs of your facility.
Tom Williams is President of eLease Equipment Leasing. He was inducted into the Leasing Hall of Fame for his work pioneering the use of the world wide web to help entrepreneurs fund their businesses. He has a degree in Economics from Boston University. Tom writes regularly on his blog about medical equipment leasing.
medical equipment lease
Friday, October 2, 2009
Making the Right Choices for Financing Your Medical Equipment (medical equipment lease)
medical equipment lease
By Kent Harlan
Healthcare decision makers face continual challenges when it comes to allocating scant recourses. Patients demand the best that medical equipment technology has to offer. But the equipment is expensive. Capital budgets typically fall way short of requests for medical technology. It is therefore critical that all aspects of the equipment purchases and financing be carefully considered before a decision is made.
Equipment to purchase:
Deciding what type of equipment to acquire can be a daunting task in and of itself. Let's say you are considering the purchase of a CT scanner. The current and most widely-used model costs around $1 million new. You've also been approached by a supplier that sells refurnished equipment. His company will sell you a refurbished 16-slice machine for $400,000. You've also discovered that a new scanner is being rolled out in six months. Although this machine will be able to detect cancer and other diseases it its early stages, the cost is $1.5 million. What do you do? Will you be able to charge more per scan with the newest technology so that revenues match expenditures? Will you be able to "get by" with the 16-slice for a period of time? These are questions that are at the root of the decision.
Once the decision has been made as to the type of medical equipment to be acquired, the next challenge is to decide what will be the optimal way of financing it. There are many options available, but the most common are borrowing the funds from a lender or leasing the equipment.
Medical Equipment Leasing:
Equipment leases (medical equipment lease) usually run from three to six years and have lower monthly payments than buying the equipment outright and financing it through a lender. That's because the lessee is paying for the use of the equipment during the term rather than owning it. In addition, leasing (medical equipment lease) offers 100% financing, as there is no down payment required other than the first payment and a security deposit equal to a payment. Since the payments are lower, providers are able to improve their cash flow and are more likely to match revenues with expenses. From a tax standpoint, leasing also offers the advantage of writing off 100% of the lease payments.
Many medical professionals also opt for leasing because of its flexibility. A lease can be negotiated in such a way as to include maintenance, upgrades, and other services. At the end of the lease term, the provider has the option to purchase, renew, or simply return the equipment. This is an important advantage, as it guards against equipment obsolescence. At the inception of the lease, you should consider negotiating a fair market value cap or placing an early buyout option in the contract. These details are rarely in a standard lease, so you must ask the lessor for these items.
Since the payments are lower, providers are able to improve their cash flow and are more likely to match revenues with expenses. From a tax standpoint, leasing also offers the advantage of writing off 100% of the lease payments.
Medical Equipment Loans:
When equipment obsolescence or cash flow isn't an issue (which is rare in the medical industry), an might be a better alternative. At the end of the lease term, the provider has an asset that he can either continue using or dispose of it on the open market. Borrowers also receive tax benefits, such as the depreciation expense on the equipment and the interest expense incurred during the loan payout.
Using a multiple of EBITDA (earnings before interest, taxes, depreciation, and amortization) is a common method of valuing healthcare practices and hospitals. If a healthcare group is considering going public or selling the business, financing equipment through a lender may be advantageous because it would result in a higher valuation than if they had leased the equipment. Leasing would be an "above the line" expense.
Personal Guarantees:
With both medical equipment leases and loans, personal guarantees from the owners are usually required. This provides a comfort level for the lessor or lender. If there is a default, the lender/lessor can attach personal assets of the lessee for the balance of the loan or lease that isn't satisfied by the liquidation of equipment. Most providers do not want to sign a personal guarantee for obvious reasons. However, if the clinic or practice has a solid track record of profits for five years or more, the lender/lessor will oftentimes abandon the personal guarantee requirement. That is another point that must be negotiated at the inception of the lease.
Choosing a lender or lessee:
Competition is fierce in the equipment financing industry. Acquiring the services of an independent financing consultant is advisable. A properly trained medical equipment financing broker will analyze your particular needs and will know which lender or lessee will be a good fit for your organization. He or she can guide you through the intricate details concerning the contract, which will allow you achieve optimal capital financing.
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 financial services company.
Are you a healthcare provider in need of medical equipment financing? Click here to apply.
EMAIL: kenth@ocflink.com
WEB: http://www.ocflink.com
PHONE: (417) 849-7394
medical equipment lease
By Kent Harlan
Healthcare decision makers face continual challenges when it comes to allocating scant recourses. Patients demand the best that medical equipment technology has to offer. But the equipment is expensive. Capital budgets typically fall way short of requests for medical technology. It is therefore critical that all aspects of the equipment purchases and financing be carefully considered before a decision is made.
Equipment to purchase:
Deciding what type of equipment to acquire can be a daunting task in and of itself. Let's say you are considering the purchase of a CT scanner. The current and most widely-used model costs around $1 million new. You've also been approached by a supplier that sells refurnished equipment. His company will sell you a refurbished 16-slice machine for $400,000. You've also discovered that a new scanner is being rolled out in six months. Although this machine will be able to detect cancer and other diseases it its early stages, the cost is $1.5 million. What do you do? Will you be able to charge more per scan with the newest technology so that revenues match expenditures? Will you be able to "get by" with the 16-slice for a period of time? These are questions that are at the root of the decision.
Once the decision has been made as to the type of medical equipment to be acquired, the next challenge is to decide what will be the optimal way of financing it. There are many options available, but the most common are borrowing the funds from a lender or leasing the equipment.
Medical Equipment Leasing:
Equipment leases (medical equipment lease) usually run from three to six years and have lower monthly payments than buying the equipment outright and financing it through a lender. That's because the lessee is paying for the use of the equipment during the term rather than owning it. In addition, leasing (medical equipment lease) offers 100% financing, as there is no down payment required other than the first payment and a security deposit equal to a payment. Since the payments are lower, providers are able to improve their cash flow and are more likely to match revenues with expenses. From a tax standpoint, leasing also offers the advantage of writing off 100% of the lease payments.
Many medical professionals also opt for leasing because of its flexibility. A lease can be negotiated in such a way as to include maintenance, upgrades, and other services. At the end of the lease term, the provider has the option to purchase, renew, or simply return the equipment. This is an important advantage, as it guards against equipment obsolescence. At the inception of the lease, you should consider negotiating a fair market value cap or placing an early buyout option in the contract. These details are rarely in a standard lease, so you must ask the lessor for these items.
Since the payments are lower, providers are able to improve their cash flow and are more likely to match revenues with expenses. From a tax standpoint, leasing also offers the advantage of writing off 100% of the lease payments.
Medical Equipment Loans:
When equipment obsolescence or cash flow isn't an issue (which is rare in the medical industry), an might be a better alternative. At the end of the lease term, the provider has an asset that he can either continue using or dispose of it on the open market. Borrowers also receive tax benefits, such as the depreciation expense on the equipment and the interest expense incurred during the loan payout.
Using a multiple of EBITDA (earnings before interest, taxes, depreciation, and amortization) is a common method of valuing healthcare practices and hospitals. If a healthcare group is considering going public or selling the business, financing equipment through a lender may be advantageous because it would result in a higher valuation than if they had leased the equipment. Leasing would be an "above the line" expense.
Personal Guarantees:
With both medical equipment leases and loans, personal guarantees from the owners are usually required. This provides a comfort level for the lessor or lender. If there is a default, the lender/lessor can attach personal assets of the lessee for the balance of the loan or lease that isn't satisfied by the liquidation of equipment. Most providers do not want to sign a personal guarantee for obvious reasons. However, if the clinic or practice has a solid track record of profits for five years or more, the lender/lessor will oftentimes abandon the personal guarantee requirement. That is another point that must be negotiated at the inception of the lease.
Choosing a lender or lessee:
Competition is fierce in the equipment financing industry. Acquiring the services of an independent financing consultant is advisable. A properly trained medical equipment financing broker will analyze your particular needs and will know which lender or lessee will be a good fit for your organization. He or she can guide you through the intricate details concerning the contract, which will allow you achieve optimal capital financing.
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 financial services company.
Are you a healthcare provider in need of medical equipment financing? Click here to apply.
EMAIL: kenth@ocflink.com
WEB: http://www.ocflink.com
PHONE: (417) 849-7394
medical equipment lease
Thursday, September 17, 2009
How to Purchase Much Needed Medical Equipment Without Spending Your Own Money (Medical Equipment Lease)
medical equipment lease
By Anthony Ferlazzo
We are enjoying the fruits of the exponential growth rate of medical equipment technology. The medical community may now offer diagnoses based on information about a patient’s condition that we couldn’t accurately obtain using older equipment. The problem is that most organizations capital budgets just can’t keep pace with the quickening of technology advances.
The problem is getting worse
If you’re like most medical care providers, you are facing the dilemma of how to provide cutting-edge care to your patients but don’t have the financial reserves (cash or credit) to make the purchase of new equipment. One could argue that it is economics that slows down the delivery of medical care. Standard accounting practices allow for the assets to be depreciated over five years. What do you do when the equipment needs to be replaced in some amount of time less than five years? One option is to try selling the outdated equipment on eBay or somewhere else in the open market.
There’s another solution
There is another option that many astute organizations use. They simply lease the equipment. Why lease? It’s all about cash-flow. Typical leasing standards require you to put just 20% down in cash, and there are some rather nimble leasing companies that will allow you to write 100% of the cost of the equipment as operating costs on your firm’s balance sheet. By treating the asset as an operating expense you don’t have to deal with depreciation on the leased medical equipment. Plus the lease does not show up on your credit report, possibly freeing you to make other necessary purchases.
Is leasing for you?
While most organizations need to be in business for at least 3 years, savvy shoppers can find leasing companies that have no time-in-business requirements. And even without documenting your financials you should be able to enter into leases up to $150,000. By providing a bit of financial information, you can lease items with a much higher dollar figure.
Does this sound like a viable option?
Typical lease terms are two to five years, and are affected by the typical useful life of the item you are leasing for your business. Some leasing companies have the flexibility to buy back newly acquired equipment assets and convert them into leases. Do you normally pay shipping, installation, training and other soft costs on top of the actually hardware? You can search out leasing companies that will include these items in the lease. Have a lease with unfavorable terms? Most do not know it, but you can actually “refinance” leases into one with more favorable terms.
If you’re strapped for cash, or just want to conserve it for other business purposes, leasing will enable you to obtain a much needed piece of business (medical or otherwise) equipment without a large outlay of cash.
Anthony Ferlazzo is a certified commercial mortgage expert. In addition to providing the medical community with financing, his company, Pronto Commercial Funding, offers unparalleled equipment leasing and receivable factoring solutions for hospitals. urgent care, medical and dental offices and condominiums, and other commercial facilities. See why 'We close everyday projects that banks turned away'.
medical equipment lease
By Anthony Ferlazzo
We are enjoying the fruits of the exponential growth rate of medical equipment technology. The medical community may now offer diagnoses based on information about a patient’s condition that we couldn’t accurately obtain using older equipment. The problem is that most organizations capital budgets just can’t keep pace with the quickening of technology advances.
The problem is getting worse
If you’re like most medical care providers, you are facing the dilemma of how to provide cutting-edge care to your patients but don’t have the financial reserves (cash or credit) to make the purchase of new equipment. One could argue that it is economics that slows down the delivery of medical care. Standard accounting practices allow for the assets to be depreciated over five years. What do you do when the equipment needs to be replaced in some amount of time less than five years? One option is to try selling the outdated equipment on eBay or somewhere else in the open market.
There’s another solution
There is another option that many astute organizations use. They simply lease the equipment. Why lease? It’s all about cash-flow. Typical leasing standards require you to put just 20% down in cash, and there are some rather nimble leasing companies that will allow you to write 100% of the cost of the equipment as operating costs on your firm’s balance sheet. By treating the asset as an operating expense you don’t have to deal with depreciation on the leased medical equipment. Plus the lease does not show up on your credit report, possibly freeing you to make other necessary purchases.
Is leasing for you?
While most organizations need to be in business for at least 3 years, savvy shoppers can find leasing companies that have no time-in-business requirements. And even without documenting your financials you should be able to enter into leases up to $150,000. By providing a bit of financial information, you can lease items with a much higher dollar figure.
Does this sound like a viable option?
Typical lease terms are two to five years, and are affected by the typical useful life of the item you are leasing for your business. Some leasing companies have the flexibility to buy back newly acquired equipment assets and convert them into leases. Do you normally pay shipping, installation, training and other soft costs on top of the actually hardware? You can search out leasing companies that will include these items in the lease. Have a lease with unfavorable terms? Most do not know it, but you can actually “refinance” leases into one with more favorable terms.
If you’re strapped for cash, or just want to conserve it for other business purposes, leasing will enable you to obtain a much needed piece of business (medical or otherwise) equipment without a large outlay of cash.
Anthony Ferlazzo is a certified commercial mortgage expert. In addition to providing the medical community with financing, his company, Pronto Commercial Funding, offers unparalleled equipment leasing and receivable factoring solutions for hospitals. urgent care, medical and dental offices and condominiums, and other commercial facilities. See why 'We close everyday projects that banks turned away'.
medical equipment lease
Saturday, August 15, 2009
How to Save Money on Medical Equipment
medical equipment lease
By Lucinda Roth
Medical Equipment can be very expensive. Here is how to save money.
Instructions
Step 1
First talk to your physician to see if he will give you a prescription. Many pieces of medical equipment, even canes, are sales tax exempt if you have a physician's prescription. This can save you 7% or more right off the bat.
Step 2
Next talk to your friends and neighbors and go to yard sales. Many people only need a cane or other medical equipment for short time periods. You can get some great sales and freebies by talking.
Step 3
Try calling the local hospices. Many times when patients leave, their medical equipment stays behind. You may be able to buy it at rock bottom prices.
Step 4
Finally check on the internet. There are many internet providers with low prices because they do not have the overhead that a traditional brick and mortar store has. Try companies such as Greendura (greendura.com) or Apria (apria.com) for inexpensive equipment.
Tips & Warnings
Make sure to let the people know when you buy medical equipment if you have a doctor's prescription so that you can possibly avoid paying taxes.
medical equipment lease
By Lucinda Roth
Medical Equipment can be very expensive. Here is how to save money.
Instructions
Step 1
First talk to your physician to see if he will give you a prescription. Many pieces of medical equipment, even canes, are sales tax exempt if you have a physician's prescription. This can save you 7% or more right off the bat.
Step 2
Next talk to your friends and neighbors and go to yard sales. Many people only need a cane or other medical equipment for short time periods. You can get some great sales and freebies by talking.
Step 3
Try calling the local hospices. Many times when patients leave, their medical equipment stays behind. You may be able to buy it at rock bottom prices.
Step 4
Finally check on the internet. There are many internet providers with low prices because they do not have the overhead that a traditional brick and mortar store has. Try companies such as Greendura (greendura.com) or Apria (apria.com) for inexpensive equipment.
Tips & Warnings
Make sure to let the people know when you buy medical equipment if you have a doctor's prescription so that you can possibly avoid paying taxes.
medical equipment lease
Tuesday, June 23, 2009
Medical Equipment Leasing
medical equipment lease
By Jason Gluckman
Advancing technology is bringing with it new medical innovations. We are certainly benefiting from these innovations, as in the case of new scanning equipment. This equipment is at the forefront of research and is very costly. To keep up with the technology, hospitals have to update their expensive equipments regularly; otherwise, they cannot offer the best health care to their patients. Every time a medical establishment upgrades the equipment, it has to sell off the old equipment.
Advantages of leasing medical equipment (medical equipment lease)
Doctors starting a new practice might have modest capital and therefore not be able to afford to buy the best, new equipment. This will certainly hamper their business prospectus. Who will go to a new doctor with obsolete equipment? By leasing, the doctors can get the latest equipment and can use their cash to run the practice efficiently.
Large hospitals might have the capital required to buy the latest equipment, but they are in danger of getting burdened by the obsolete, costly equipment in near future. By leasing, the risk of ending up with an obsolete machine is minimized, as you can build, upgrade, or add-on to the lease. In the process, hospitals also save lot of cash, as there is hardly any upfront amount required for leasing the medical equipment (medical equipment lease). As a result, the hospitals can expand their business with the saved money.
Medical equipments available on lease
According to a study, the medical industry in the United States leased approximately $ 3 billion worth of equipment in the last year. Examples of the equipment that can be leased are blood analyzers, CT scanners, heart monitors, and X-ray machines.
In the medical industry, businesses need to stay equipped with the latest machines. Therefore, in such a technologically driven business, leasing medical equipment (medical equipment lease) is a more profitable choice than purchasing it.
Equipment Leasing provides detailed information on Equipment Leasing, Transportation Equipment Leasing, Equipment Leasing Companies, Medical Equipment Leasing and more. Equipment Leasing is affiliated with Commercial Leasing.
medical equipment lease
By Jason Gluckman
Advancing technology is bringing with it new medical innovations. We are certainly benefiting from these innovations, as in the case of new scanning equipment. This equipment is at the forefront of research and is very costly. To keep up with the technology, hospitals have to update their expensive equipments regularly; otherwise, they cannot offer the best health care to their patients. Every time a medical establishment upgrades the equipment, it has to sell off the old equipment.
Advantages of leasing medical equipment (medical equipment lease)
Doctors starting a new practice might have modest capital and therefore not be able to afford to buy the best, new equipment. This will certainly hamper their business prospectus. Who will go to a new doctor with obsolete equipment? By leasing, the doctors can get the latest equipment and can use their cash to run the practice efficiently.
Large hospitals might have the capital required to buy the latest equipment, but they are in danger of getting burdened by the obsolete, costly equipment in near future. By leasing, the risk of ending up with an obsolete machine is minimized, as you can build, upgrade, or add-on to the lease. In the process, hospitals also save lot of cash, as there is hardly any upfront amount required for leasing the medical equipment (medical equipment lease). As a result, the hospitals can expand their business with the saved money.
Medical equipments available on lease
According to a study, the medical industry in the United States leased approximately $ 3 billion worth of equipment in the last year. Examples of the equipment that can be leased are blood analyzers, CT scanners, heart monitors, and X-ray machines.
In the medical industry, businesses need to stay equipped with the latest machines. Therefore, in such a technologically driven business, leasing medical equipment (medical equipment lease) is a more profitable choice than purchasing it.
Equipment Leasing provides detailed information on Equipment Leasing, Transportation Equipment Leasing, Equipment Leasing Companies, Medical Equipment Leasing and more. Equipment Leasing is affiliated with Commercial Leasing.
medical equipment lease
Monday, May 4, 2009
Medical Equipment Leasing & Financing - Know What to Do
medical equipment lease
By Stephen Lamb
Medical equipment leasing is a common way for physicians and doctors to start or grow their practice. The cost of medical equipment is so high that it is near impossible for a doctor to start a practice without utilizing leasing. There are many expenses that physician's need to factor in when they are thinking of starting a new practice on their own. Medical equipment is just one part of those expenses.
Leasing can often be beneficial to a physician's practice for several reasons. Loans often make you put a down payment on the equipment that you are purchasing. This is not the case when it comes to leasing medical equipment. In a lease you only have to make monthly payments with no initial cost up front. This is especially helpful if the physician already has loans and is unable to fund any of the equipment costs upfront.
Reducing the initial funding is not the only benefit of leasing. At the end of a lease the physician has the opportunity to purchase the equipment from the leasing company. This can provide an excellent opportunity for the practice. This also important when it comes to depreciation of medical equipment. The practice is protected from the depreciation of the equipment since they do not need to keep the equipment at the end of the lease if it has lost its value.
Proper research should be done when considering medical equipment leasing. You should consider researching the leasing company before you decide to research the equipment you plan on purchasing. Find a company that fits your needs and can be flexible to your situation.
And stay up to date on product developments in the medical field by visiting http://www.medicalequipmenttoday.com
medical equipment lease
By Stephen Lamb
Medical equipment leasing is a common way for physicians and doctors to start or grow their practice. The cost of medical equipment is so high that it is near impossible for a doctor to start a practice without utilizing leasing. There are many expenses that physician's need to factor in when they are thinking of starting a new practice on their own. Medical equipment is just one part of those expenses.
Leasing can often be beneficial to a physician's practice for several reasons. Loans often make you put a down payment on the equipment that you are purchasing. This is not the case when it comes to leasing medical equipment. In a lease you only have to make monthly payments with no initial cost up front. This is especially helpful if the physician already has loans and is unable to fund any of the equipment costs upfront.
Reducing the initial funding is not the only benefit of leasing. At the end of a lease the physician has the opportunity to purchase the equipment from the leasing company. This can provide an excellent opportunity for the practice. This also important when it comes to depreciation of medical equipment. The practice is protected from the depreciation of the equipment since they do not need to keep the equipment at the end of the lease if it has lost its value.
Proper research should be done when considering medical equipment leasing. You should consider researching the leasing company before you decide to research the equipment you plan on purchasing. Find a company that fits your needs and can be flexible to your situation.
And stay up to date on product developments in the medical field by visiting http://www.medicalequipmenttoday.com
medical equipment lease
Monday, April 20, 2009
Benefits of Leasing Medical Equipments
medical equipment lease
By Zelma Ambrose
In the competitive world of healthcare, medical care providers need to be equipped and updated in terms of technology, equipments and services offered to patients. The task is however a costlier affair and often upgrading to the most modern medical equipments is not quite affordable for small and medium healthcare providers. An ideal alternative to this problem is to lease the required medical equipments (medical equipment lease) from a reliable equipment leasing company.
The lessee enjoys reaps huge benefits when leasing medical equipments. It can provide critical upgrades to existing outdated medical equipments and can increase the confidence of your patients with treatment using modern equipments. Healthcare firms can save the initial cost of buying costly equipments and the same amount can be used for productive purposes. The main benefit is that your firm is prevented from getting into huge debts due to large equipment acquisitions, and you get to conserve your working capital as well as current lines of credit. Leasing medical equipment (medical equipment lease) offers relief for those who are worried of their purchased equipment being outdated in the near future. Further benefits include tax savings, which are higher if the equipment is being leased in the United States.
A variety of medical equipments are available for lease, some of which includes medical furniture, MRI scanners, ultrasound equipments, operation theater equipments, sterilizers, anesthesia machines, patient monitoring equipments, respiratory ventilators, x-ray equipments, portable medical equipments, CT scanners, etc. Most vendors lease these equipments for use in private and public hospitals, clinics, acute care centers, research labs, etc.
Lease companies also give you the option to buy the equipment at its current market value at the end of the lease period, if you find the equipment a valuable asset. Further, they can arrange easier and flexible payment methods which can depend either on the use or from revenues generated with the equipment.
To conclude, leasing is the best option for healthcare firms to remain competitive without having to part with their working capital for obtaining costly equipments.
Zelma Ambrose is working as a consultant at GSG. If you are in need of the latest medical equipment to expand the operations of your hospital or clinic but can't afford to buy new ones, then medical equipment leasing from Graphic Savings Group is the perfect solution for you. GSG offers a full line of leasing options from refinancing to lease buyouts.
medical equipment lease
By Zelma Ambrose
In the competitive world of healthcare, medical care providers need to be equipped and updated in terms of technology, equipments and services offered to patients. The task is however a costlier affair and often upgrading to the most modern medical equipments is not quite affordable for small and medium healthcare providers. An ideal alternative to this problem is to lease the required medical equipments (medical equipment lease) from a reliable equipment leasing company.
The lessee enjoys reaps huge benefits when leasing medical equipments. It can provide critical upgrades to existing outdated medical equipments and can increase the confidence of your patients with treatment using modern equipments. Healthcare firms can save the initial cost of buying costly equipments and the same amount can be used for productive purposes. The main benefit is that your firm is prevented from getting into huge debts due to large equipment acquisitions, and you get to conserve your working capital as well as current lines of credit. Leasing medical equipment (medical equipment lease) offers relief for those who are worried of their purchased equipment being outdated in the near future. Further benefits include tax savings, which are higher if the equipment is being leased in the United States.
A variety of medical equipments are available for lease, some of which includes medical furniture, MRI scanners, ultrasound equipments, operation theater equipments, sterilizers, anesthesia machines, patient monitoring equipments, respiratory ventilators, x-ray equipments, portable medical equipments, CT scanners, etc. Most vendors lease these equipments for use in private and public hospitals, clinics, acute care centers, research labs, etc.
Lease companies also give you the option to buy the equipment at its current market value at the end of the lease period, if you find the equipment a valuable asset. Further, they can arrange easier and flexible payment methods which can depend either on the use or from revenues generated with the equipment.
To conclude, leasing is the best option for healthcare firms to remain competitive without having to part with their working capital for obtaining costly equipments.
Zelma Ambrose is working as a consultant at GSG. If you are in need of the latest medical equipment to expand the operations of your hospital or clinic but can't afford to buy new ones, then medical equipment leasing from Graphic Savings Group is the perfect solution for you. GSG offers a full line of leasing options from refinancing to lease buyouts.
medical equipment lease
Monday, April 6, 2009
Medical Equipment Leasing - Is a Medical Working Capital Loan Better Than Leasing Medical Equipment?
medical equipment lease
By Shawn Vaillancourt
Leasing medical equipment has its benefits-that's for sure. Sometimes there are other excellent ways to acquire your medical equipment opposed to just simply leasing the new medical equipment.
Let's take a quick look at a loan versus lease situation in the medical field:
-- When comparing an equipment lease to a working capital loan, the lease has up-front payments. The working capital loan does not.
-- When comparing a medical equipment lease to a working capital loan, the lease requires installation of equipment to be completed prior to funding. The working capital loan does not.
-- With a medical equipment lease an original vendor invoice is required prior to funding. That is not the case with a medical working capital loan.
-- With a medical equipment lease you may have issues buying from certain vendors (private party, auction house, or the internet). When you use funds from a medical working capital loan, you WILL NOT have these issues.
-- Is early payoff allowed? Well, with the medical working capital loan the answer is yes. With the medical equipment lease, the answer is maybe. Often times when a leasing company shares with you that there is no pre-payment penalty, they sometimes forget (yeah right, more like neglect to tell you) to tell you how early payoff works. Generally, you'll be required to remit the remaining number of payments left in your term. In other words, it does not work like a fully amortized loan.
These are a few of the benefits of using a medical working capital loan to buy your equipment rather than simply leasing your equipment.
Due to the professional stature of a physician, the medical working capital loans can be pretty easy to get. If you have the following, it should be a snap:
--A 675 credit score
--3 years in business owning your current practice
--Must be operating his or her practice on a day-to-day basis
--Bankruptcies should be older than 5 years
--It's Generally application only up to $75,000 (certain restrictions may apply)
So, if this sounds like something you'd like to explore, it's normally pretty easy to apply right online.
medical equipment lease
By Shawn Vaillancourt
Leasing medical equipment has its benefits-that's for sure. Sometimes there are other excellent ways to acquire your medical equipment opposed to just simply leasing the new medical equipment.
Let's take a quick look at a loan versus lease situation in the medical field:
-- When comparing an equipment lease to a working capital loan, the lease has up-front payments. The working capital loan does not.
-- When comparing a medical equipment lease to a working capital loan, the lease requires installation of equipment to be completed prior to funding. The working capital loan does not.
-- With a medical equipment lease an original vendor invoice is required prior to funding. That is not the case with a medical working capital loan.
-- With a medical equipment lease you may have issues buying from certain vendors (private party, auction house, or the internet). When you use funds from a medical working capital loan, you WILL NOT have these issues.
-- Is early payoff allowed? Well, with the medical working capital loan the answer is yes. With the medical equipment lease, the answer is maybe. Often times when a leasing company shares with you that there is no pre-payment penalty, they sometimes forget (yeah right, more like neglect to tell you) to tell you how early payoff works. Generally, you'll be required to remit the remaining number of payments left in your term. In other words, it does not work like a fully amortized loan.
These are a few of the benefits of using a medical working capital loan to buy your equipment rather than simply leasing your equipment.
Due to the professional stature of a physician, the medical working capital loans can be pretty easy to get. If you have the following, it should be a snap:
--A 675 credit score
--3 years in business owning your current practice
--Must be operating his or her practice on a day-to-day basis
--Bankruptcies should be older than 5 years
--It's Generally application only up to $75,000 (certain restrictions may apply)
So, if this sounds like something you'd like to explore, it's normally pretty easy to apply right online.
About Vitality Finance Group
For more info on the Medical Working Capital Program Click Here! Contact us or apply online at (877) 834-3247 or http://www.vitalityfinancegroup.com
medical equipment lease
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