Medical equipment leasing involves the rental of tools needed by hospitals and physicians. If a practice’s medical equipment becomes outdated, a leasing program allows for a low-cost upgrade with little overhead.
Different types of medical equipment can be leased, including imaging equipment, diagnostic tools, non-disposable lab supplies and more. Medical equipment leases involve making a monthly payment to cover operating the equipment and potentially buying the equipment at the end of the lease term.
You're likely to hear the term cash flow tossed around frequently when looking at medical equipment leasing providers. Cash flow involves keeping cash on hand instead of paying to own pricey equipment. Conserving funds allows a business to thrive by not going into debt for medical equipment purchases.
National Association of Equipment Leasing Brokers
The National Association of Equipment Leasing Brokers is an organization where you will find providers of medical equipment financing. This organization provides leasing educational materials to their members in order to help them thrive in the market.
One type of medical equipment lease is what is known as a true lease. A true lease involves the operation of equipment and the return to the supplier at the end of the lease terms. No buy-out option is offered.
Another type of medical equipment lease is a synthetic lease. A synthetic lease allows you to claim the medical equipment as an expense for tax deduction purposes while still appearing as a lease for your accounting department.
The terms of the lease will affect how much you will have to pay each month for the medical equipment. Longer leases will have a lower payment rate, but the pieces of equipment are likely to depreciate by the time the lease agreement ends.
FICO scores will often be used by a company to determine eligibility for a medical equipment lease. FICO scores are your credit score, typically between 330 and 880, that reflect your credit history. Higher FICO scores will more likely be approved for medical equipment leasing options.