In continuation of our blog series, Crestmark Equipment Finance discusses the advantages of leasing medical equipment and why hospitals, healthcare facilities, doctor and dentist offices, and other medical-related businesses should consider financing versus a credit line or bank loan.
According to the American Hospital Association, 5,686 hospitals are registered in the United States with 2,904 qualifying as non-government Not-For-Profit Community Hospitals and 1,010 qualifying as state and local government community hospitals. All of these medical facilities also are seeking ways to properly treat their patients with the latest medical equipment and technology without a large, upfront cost to their already tight budgets.
• Municipalities: Hospitals, healthcare facilities and other treatment centers may qualify as a municipality which allows their business to get specialized municipal rates, tax advantages and delayed billing so their payments occur in the next fiscal year budget.
• Collateral: The financed equipment serves as the collateral for the lease transaction. In a bank loan, acquired equipment may be structured under a blanket lien which could lock up additional assets or credit lines. Remember, a lease also provides the option to roll maintenance, software, training and installation costs (“soft costs”) into your lease payment.
• Less upfront payment: Purchasing high-tech medical equipment means a large cash outlay in advance. Utilizing a credit line could involve high monthly interest charges. Applying for a bank loan could involve a 20% down payment (or higher) plus it ties up your hospital’s credit for other needed services (employees, etc.). Leasing requires one payment in advance and payments are fixed throughout the lease term.
• Flexibility: Leasing gives your hospital options to own the equipment, extend the lease or even purchase the equipment through your selected lease term. Crestmark Equipment Finance also has designed specialized programs for hospitals and healthcare facilities to acquire equipment on an “as needed” basis and roll the costs into one fixed payment at the end of a designated period.
• Multiple Equipment Types: Crestmark Equipment Finance remains as a vendor-neutral commercial lease financing provider, which means our leasing experts can bundle multiple types of equipment from different medical equipment manufacturers into one fixed monthly lease payment. You simply select the vendors and equipment; Crestmark Equipment Finance will work with them to ensure proper installation before your lease commences.
Like most types of qualifying equipment, hospitals and qualified healthcare facilities also can leverage the tax benefits of leased equipment, avoid obsolete technology and develop an end of lease option which fits their facility and budget.
To receive a leasing quote for your medical equipment, please contact Crestmark Equipment Finance or call 888.999.8050.