As a doctor in private practice, you enjoy the one-on-one relationships you develop with patients but not necessarily the cost of purchasing medical equipment. From X-ray machines to CT scanners to MRIs, medical equipment does not come cheap. Despite this, you understand that you risk losing patients to your competitors by keeping outdated equipment on hand for too long. You also know that replacing faulty equipment that no longer responds to repairs is essential. This can be difficult to do with all the other expenses you must manage, but equipment financing can help.
Equipment Financing: Is a Loan or Lease Right for Your Medical Practice?
Equipment financing is an excellent option when you do not have the means or simply do not wish to purchase medical equipment outright because it would deplete cash reserves. If you choose to go this route, you need to decide if you prefer an equipment loan or an equipment lease. What both types have in common is that the piece of medical equipment you finance acts as collateral for the loan or lease. That means the owner of the equipment can take it back if you fall behind on payments or otherwise violate the terms of your agreement.
An equipment loan is like any other type of loan except that you must use it to purchase medical equipment for your private practice. Another difference between an equipment loan and a typical bank loan is that you make payments directly to the equipment owner rather than going through a bank.
With equipment leasing, you make payments on the piece of medical equipment for the duration of the contract. At the end of the term, you have the option to trade in the equipment for a newer model and start a new contract, buy it outright, or discontinue further lease agreements with the equipment owner. Should you decide to purchase the medical equipment, the owner should credit you with the payments you made during the lease period.
Spearing Capital offers equipment leasing and several other alternative financing options for medical practices. Please contact us today to learn more.