| BASICS OF OPENING A NEW MEDICAL PRACTICE: | | | | the equipment refers you to a leasing company it |
| DECIDING ON SPACE AND GETTING FINANCING | | | | partners with. |
| FOR EQUIPMENT LEASING | | | | While it is expected that the company selling you their |
| Health professionals must take many factors into | | | | equipment will try to offer you a competitive quote for |
| consideration when deciding to open a medical office. | | | | the monthly lease, it is always advisable to get another |
| Since all a medical practice is a business like other | | | | quote from another leasing company. It is usually easy |
| service businesses, your most important consideration | | | | to find an equipment leasing company online. [ |
| is location. You should take from 6 – 12 months | | | | There are significant advantages to leasing equipment |
| to decide on the right location and the renovation | | | | versus applying for a small business loan. |
| process. Access to your office, type of patient | | | | 1. It is a simple & quick application process vs. an |
| population you serve, as well as proximity to a hospital | | | | extensive one which would require financial statement |
| are important considerations | | | | and tax returns. |
| DECIDING ON OFFICE SIZE AND RENOVATIONS | | | | 2. Leasing does not require a down payment, whereas |
| In measuring space for a medical office the rule of | | | | a bank would ask for a percent of the fee needed |
| thumb is approximately 1200 to 1500 square feet for | | | | paid by you |
| the first physician and 1000-1200 square fee for each | | | | 3. Leasing payments are fixed at reasonable monthly |
| additional physician. Certain practices may require | | | | rates and the leasing company does not require you |
| additional space for x-ray or imaging equipment. | | | | to send in quarterly or annual financial statement as |
| Consider renovation in your medical office the same | | | | you would have to do with a loan |
| way a businessman considers investment money for | | | | 4. With a leasing company you do not pay any |
| small business needs. You want to get the best value | | | | additional fees to the cost of buying the equipment, so |
| for your money and for that you must consider the | | | | the dollar figure you are financing is less. You do not |
| type of image you want to project. Whether your | | | | pay points, appraisal or lawyer's fees. |
| expected patient base shops at Bloomingdales or | | | | 5. Taking out a loan can have a negative impact on |
| Walmart, you don't want to intimidate or disappoint | | | | your balance sheet and debt ratios, whereas a lease is |
| them. If you need capital improvements to decide | | | | clean to itemize in your budget. |
| appropriate electric, plumbing and HVC needs, then you | | | | 6. Lease payments are tax deductible and are |
| are advised to hire an architect. | | | | normally treated as a tax expense. As such your tax |
| YOU CAN EASILY LEVERAGE YOUR MEDICAL | | | | benefits may occur more quickly than you would get |
| EQUIPMENT LEASING NEEDS TO GET MONEY | | | | with depreciation. |
| FOR YOUR CONSTRUCTION NEEDS | | | | BENEFITS TO ASK A LEASING COMPANY |
| Rather than have to invest in new medical equipment, | | | | If you are funding equipment for under $100,000 then |
| you should be thinking of equipment leasing. In effect, | | | | the application process should be simple and without |
| leasing equipment you need for your business is like | | | | the need for extensive personal financial statements. In |
| taking a loan in which the lender buys and owns the | | | | addition, you can sometimes include furniture, small |
| equipment and then "rents" it to you at a flat monthly | | | | office equipment and computer systems in a medical |
| rate for a specific number of months. This is similar to | | | | leasing option. |
| leasing a car, which many of us are quick familiar with | | | | Most important is to recognize whether you are |
| in today's market. | | | | receiving good service from your leasing company. |
| HOW TO FIND AN EQIPMENT LEASING COMPANY | | | | You should feel that they value you as a customer, |
| When considering a leasing agreement, in most cases | | | | which means they answer your calls promptly, get |
| the company that is selling the medical equipment is | | | | back to you quickly if you have any questions, and try |
| not the same company that is offering the lease | | | | to expedite your application to serve your needs. |
| financing. It is usually set up that the company selling | | | | |