How Medical Equipment Can Be Financed
Sometimes it happens; you’re going about your work and suddenly–as if out of nowhere–an expensive piece of medical equipment breaks. Many of these pieces are difficult to repair and put a strain on the budget if they have to be replaced. Financing is always an option, but it pays to know what kinds of funding are out there so you can choose the best investment for your practice. The most common types of financing are loans and leases, but there are several types of these, and occasionally you can get a hybrid of the two.
There are a variety of loan options available for business equipment. Some function like mortgages wherein you purchase the necessary item using bank funding and then pay it off over a set period of time. Other loans are simple money transactions that allow you to take out money directly. In both cases, the lender and borrower agree on strict terms for how the loan amount will be used. This is usually a benefit that works to prevent ineffective loan purchases and ensures that your practice gets the right medical equipment for the job.
An equipment lease is fundamentally different from any loans in that the lender either owns or purchases the necessary equipment and then allows you to use it for a set fee. This tends to be a good option for very expensive items and pieces of medical equipment that age well and continue to be a profitable business investment for the lender even after the borrower has decided to switch to something new. Although in many cases you’ll never end up owning the leased items by simply paying the rent on them, some lenders have rent-to-own deals available. Even if you don’t wind up purchasing the equipment, the costs of leasing tend to be lower than other kinds of financing, making it easier for your practice to get up and running again.
Of course, there are many reasons to invest in equipment financing. Perhaps you’re starting up a new practice and need to furnish your whole clinic. Perhaps you’re in a lull, and you know that upgrading your equipment can better serve your patients. Perhaps a piece of medical equipment you use regularly is in disrepair or needs to be updated. No matter what your reasons, financing is available to ensure your practice is outfitted to help as many patients as possible.