Lease Medical Equipment for Optimal Financial Results

Medical equipment leasing is an excellent way forwrite offs (depending on how the lease is structured),
providers to allow their practices to acquire state ofimproved cash flow, fast processing, and better asset
the art equipment. The medical profession is constantlymanagement. You usually get an option to buy the
changing, so in order to remain competitive, providersequipment at the end of the lease term at a stated
must continually upgrade their equipment packages.amount or fair market value. Leases can also be
Unfortunately, to outright buy or get a standard loan onwritten to accept lower payments during low volume
the equipment requires a huge outlay of cash. Leasingcycles and can also provide an option for the lessee
solves the problem because no down payment isto make lower payments during the initial years and
required, thereby allowing the provider to retainaccelerate payments in the latter years.
thousands (or hundreds of thousands) of dollars ofMost any piece of medical equipment can be leased,
capital. Lease periods typically range from 24 to 60such as x-ray machines, CAT scan machines, physical
months, so there is a great deal of flexibility to upgradetherapy equipment, computers, examination tables, lab
the equipment without a major capital investment.equipment, and even waiting room furniture. Because
There are many advantages to leasing medicalof the many advantages of medical equipment leasing,
equipment. There are no down payments, theproviders are able to give the highest quality care to
application is relatively simple, and no restrictivethe public.
borrowing covenants. In addition, leasing doesn't involveWe advise using a financial broker to assist in the
cross collateralization. Leases provide 100% financingleasing process. A broker works to put the package
with low rates for those with good credit. Othertogether for the leasing company and helps the client
advantages include tax deductions and immediatesort through the myriad of options available.