Keeping up to date medical equipment is a must for all practices and hospitals. However it often comes with a high price tag that can create a financial burden for the business. Medical equipment financing help to alleviate that financial burden by offering affordable monthly payments for medical equipment purchases.
If you own a medical practice or run a hospital you are aware of the large price tag around new medical equipment. Financing medical equipment through loans or leasing is a great option that will help to break up this big purchase price and spread it out to affordable monthly payments for 2 to 5 years depending on your businesses needs.
Loans for Medical Equipment
Loans for medical equipment take the large purchase price of equipment and break it up into affordable monthly payments. Interest rates reflect the borrower’s credit rating and history. A loan term lasts 2 to 5 years depending on the borrower’s’ needs. During the loan term there is a lien help on the medical equipment, failure to repay the loan could result in repossession. At the end of the loan, after the final payment is made the lien is removed and the borrower has full ownership of the medical equipment, creating a large asset of the medical practice or hospital.
Leasing medical equipment is similar to a rental. During the lease term the borrower makes monthly payments with interest to the lender. The life of the lease typically lasts 2 to 5 years, similar to a loan. At the end of the lease the borrower return the medical equipment with option to buy it at a reduced cost. Leasing typically requires a high credit score and large down payment. The lease payments are typically tax deductible making this a sought after option for make medical practices and hospitals.
Chris Fuller went to the University of South Florida and has worked in the financial sector for over 20 years. He has extensive experience in all aspects of personal and small business lending, from personal loans, equipment finance to cash flow based solutions for small mom and pop businesses, and large corporations.