6 Reasons To Finance Your Medical Equipment
organisation, the more the equipment needed. Since medical equipment is expensive, this also means that upgrading equipment is not cheap or easy. This leads to medical organisations relying on outdated equipment and unreliable technology. That in turn, puts the organisation and the patients being treated at risk.
Fortunately, medical organisations have the opportunity to finance or lease their equipment, which can drastically reduce their costs. Here are 8 reasons to finance or lease your medical equipment:
1. Tax Deductible
A single piece of medical equipment is itself fairly expensive. Therefore, when you need more than one of the same equipment, costs are likely to skyrocket quite fast. Financing your equipment in such a situation would greatly reduce your costs as certain leases aren’t considered as purchases by the IRS. Thus, those leases would be tax deductible, which when added up would reduce the net cost drastically.
2. Improved Budgeting
Many lease companies allow you to pay for the lease in fixed amounts over a period of time. This allows you to have a clear idea of how much you need to spare for the lease and how much you can save and reinvest into the company. That in turn leads to better predictions of future growth and improved budgeting. What’s more is that you can even customise payments to match your cash flow and seasonal income fluctuations.
3. Keep Up-To-Date
Medical practices always need the latest equipment. However, purchasing new equipment every 2-3 years may not be feasible for many medical organisations. But when you finance your equipment, you have the option of upgrading your technology without the added cost.
4. Outsource Asset Management
When you finance equipment, the lease often comes with an option to outsource asset management. That is, your financing company will offer to take care of all the costs related to the equipment, including repairs and upgrades. So, you do not have to worry about finding someone to repair your equipment as your equipment financing company will do it for you.
Moreover, if you have old equipment to sell, certain finance companies will likely purchase them off you when you sign up for a lease. This leads to further reduced costs for the leasing as well.
5. Benefits of Bundling
More often than not, the finance company you approach will take care of all the costs related to the equipment. Therefore, with leasing, you can bundle the cost of equipment, installation, maintenance and more into a single, easily managed solution. This also means that if you choose to dispose the equipment, the finance company will be responsible for that as well.
6. Hedge Against Inflation
Once you sign the lease, you do not need to worry about the inflation costs. This is because you can lock in the rates for the equipment and just pay your fixed amount without worrying about inflation.
Apart from leasing, business loans for doctors are a good option to finance your equipment, particularly those from NBFCs like Bajaj Finserv. Unlike traditional business loans, professional Doctor Loans from Bajaj Finserv come with a flexi loan option, that works almost like a lease.
The flexi loan, allows you a credit limit of anything between Rs. 30 lakh to Rs. 2 crore, (depending on the type of loan you take) within which you can borrow as much as you need, when you need it.
Moreover, you only need to pay the interest as EMI and can pay the principal amount later. You also have an option to prepay the amount anytime within the tenor, at no additional cost. Lastly, the online account access allows you to pay and apply online!