Medical Equipment Leasing

2007-07-24 08:31:47

( Real Estate )



Medical Equipment Requires a Lot of Investment

If you are just starting in medical practice, you need to acquire expensive medical equipment to use for your services. Even the simplest medical equipment, such as x-rays and examination tables, will definitely require a huge amount of investment if you choose to purchase your own. In most cases, you need to borrow the funds just to acquire the equipment, and be exposed to a certain amount of risk. Eventually, the equipment will become obsolete, and at that point, you will need to spend again to get new ones.

Medical Equipment Leasing as an Alternative

As an alternative, leasing can give you certain advantages over buying your medical equipment. You will not need to spend a large amount of cash outlay, so you conserve your capital for more urgent operational expenses. Unlike bank loans where you have to make down payments or maintain compensating deposit accounts, you only need to put up the first and last month of your lease term as initial outlay.

Your monthly lease payments don't need to be uniform. You can arrange for deferred or lower initial monthly payments especially if you have a start-up business. Another alternative is to match your lease payment levels with your monthly cash flow patterns.

Your lease payments fall in the same category as depreciation expense, and are considered as operational expenses. Thus, leasing expenses are fully tax-deductible.

Best of all, you don't need to worry about obsolescence, because you can have your leased equipment replaced or upgraded anytime. And in case you have a problem with your leased equipment, the leasing company can provide emergency repair or replacement services.

Most medical equipment leasing contracts give you the option to purchase the equipment at the end of your lease term, at prices based on the equipment's fair market value.

Where to Find Medical Equipment Leasing Companies

You can easily locate these companies online or through local yellow pages. They are usually the same companies that offer photocopier, computer and construction equipment leasing programs.

Take time to shop around and discuss your needs thoroughly with the leasing companies. Have a clear understanding of the lease terms and conditions first before finally deciding on a medical equipment leasing program.


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