Healthcare Lease Financing

How does leasing equipment benefit my company financially?

It has become increasingly more common in recent years for companies to lease equipment. Here are some outlined financial benefits that leasing equipment will give you:

Maintain Credit Availability.
By leasing healthcare equipment, if structured properly, you can maintain your credit availability, as the lease debt does not have to be considered a direct liability on your financial statements. Leasing healthcare equipment also typically does not limit your ability to borrow from lending sources.

Fixed Rate Financing.
It offers fixed rate financing; you pay at the same rate monthly.

Inflation friendly.
Healthcare leasing is inflation friendly. As the costs go up over 3-5 years, you will remain paying the same rate as when you began the lease, therefore making your dollar stretch farther. (In addition, the lease is not connected to the success of the business. Therefore, no matter how well the business does, the lease rate never changes.)

Keep your cash.
Instead of buying your equipment upfront, you make one stable payment to the finance lease.

Pay for what you need.
Leasing equipment better utilizes equipment; you lease and pay for equipment only for the time you need it.

If you like it, keep it.
At the end of a leasing term, you typically have a choice to buy the equipment if you wish to keep it.

Your company is always up-to-date.You can keep upgrading; as new equipment becomes available you can upgrade to the latest models each time your lease ends.

Lease Financing is easier to obtain. Typically, it is much easier to obtain lease financing than loans from commercial lenders.

Tax benefits. Leasing equipment offers potential tax benefits depending on how the lease is structured.

Can leasing help boost my credit?

Lease financing can also help you enhance your status to the lending community by improving your debt-to-equity and earnings-to-fixed assets ratios. Leasing financially provides flexibility to best accommodate the individual cash flow requirements of a specific business because there are a lot of ways a lease can be financially structured. For example: you may have step up or step down payments, balloon payments, seasonal payments or even deferred payments.

If you have any questions about healthcare financing, please feel free to contact us now!