Why Medical Providers Should Choose Medical Equipment Leasing

An alternative to traditional bank financing methods that makes sense for many medical providers is medical equipment leasing. Shown to have a beneficial effect on cash flow and available capital in most cases, as well as some favorable tax advantages, the benefits of equipment leasing over traditional financing include flexible ability to keep up with the steady pace of change in medical equipment and technology and decreased debt in your practice overall.

Medical Technology Changes Rapidly

While preserving necessary capital for ongoing business expenses and capital expenditures, a medical professional must continually invest in medical equipment to keep up with advances in technology and changes in the art that require continued investment in very costly new machinery. When financed with traditional means, the down payment on new equipment can often require a substantial capital outlay, which can be avoided with equipment leasing options.

Keep Your Options Open

Look into medical equipment leasing that offers a variety of options for the end of the term. Possibilities to consider include upgrade, purchase of the equipment, renewal of the lease, or return of the equipment. Keeping as many options in your arsenal as a business practice allows you the flexibility to decide what is right for your office versus being presented with a traditional financing plan with a large capital expense in the down payment and high variable interest rates that can leave you vulnerable to changes in the market rates.

Keep Your Credit Out of Your Business

With medical equipment leasing, the financing is strictly between the business and the lender. The doctor's personal credit is not hindered or jeopardized in any way, as the lease is secured through the business, with the office as the 'borrower'. No adverse ratings or stress are placed on the doctor's credit, and regardless of the outcome of the lease term, there is no impact on the doctor's credit rating with financing secured solely by the medical equipment.

Think Tax Smart and Interest Wise

The value of medical leasing extends to savings on interest, with a fixed rate for the life of the lease, and tax benefits available, as the equipment that is leased is not considered a taxable asset, and the payments on the lease are not viewed as a liability for taxation. The result is that you can see savings in several significant categories with the flexibility, cash flow freedom, and certainty of terms that allow you to maintain the most current technology and equipment while limiting your capital outlay. Find out today how you can grow your practice's potential to serve more patients with medical equipment leasing.

See more on R&W Commercial Funding Solutions' Healthcare & Medical Financing Program!