Medical equipment financing if it appreciates, buy it. If it depreciates, lease it.
Medical equipment financing is most effectively obtained through a lease arrangement. Traditional bank lines are perfect for running the day-to-day operations of a business but not for funding long-term equipment acquisitions.
Conserve Capital – Leasing conserves your working capital by requiring only a minimum initial outlay of cash – usually just the first and last payment. This frees your working capital for other profit generating activities or investments.
Save bank lines of credit – Leasing preserves your bank line of credit so that you are ready should a business opportunity or unexpected demand for cash occur.
Tax Benefits – Leasing allows you a dollar for dollar write off of the lease rental payments. With the new tax laws, the depreciation advantage of ownership is far less attractive when compared to leasing. Profitability is derived from the use of the equipment not the ownership.
100% Financing – Leasing provides 100% financing. Consulting, maintenance, freight, installation and training costs, may be included in the lease.
No obsolete equipment – Leasing affords you the opportunity to add-on, upgrade or replace obsolete equipment. Because flexibility is one of the greatest benefits of leasing, you never have to be stuck with old, out-of-date equipment.