Medical Equipment Leasing
Tips on home medical equipment rentals
If you operate a business in the healthcare industry, you have many options when it comes to procuring the specialized equipment you need to provide patient or laboratory services. Medical equipment leasing is available, both through financial institutions and directly from suppliers. To achieve optimal cost-effectiveness, you need to closely evaluate all options at your disposal before making any decisions about a medical equipment lease or rental.
Options for Leasing Medical Equipment
The numerous options you have all stem from two main approaches you can take: financing your lab, office or home medical equipment through a lender, or dealing directly with a medical equipment supply company. Both have advantages and drawbacks.
If you choose to lease medical equipment through a financial institution, what you will essentially be doing is getting equipment on a rent-to-own basis. The bank's financing pays the medical equipment supply company for your purchases, then acts as an intermediary owner, leasing the equipment to you until the terms of your loan are fulfilled. At that time, the lender will release all ownership claims to the equipment, and you will own it. The advantage of this approach is that you will, at the end of the day, actually own the equipment rather than paying to rent it for months or years with nothing to show for it. This option may not be available through a medical supply company.
However, the downside of financing your medical equipment rental through a bank is that it affects your ability to borrow money for other purposes. Though it is relatively easy to get financed if you want to rent medical equipment on a lease-to-own basis, you need to balance the benefits against what you might achieve if you had that capital free to grow other aspects of your business.
In some cases, it may make more long-term sense to deal directly with a medical equipment supply company and arrange a straight-up monthly rental or long-term lease for the equipment you need. This approach controls your costs, leaves your cash flow intact and allows you to use loans and credit for other, possibly more important, things.
These same principles apply to many other aspects of your business, including the question of whether office furniture rental is a better option than financing a furniture purchase, and so on. In each case, you need to compute the long-term benefits of asset ownership against the short-term power of having more money to spend.