Medical Equipment Financing

Written by Eisla Sebastian

Medical equipment is expensive and needs to be updated constantly. Because of this, many clinics and medical offices struggle to keep their practices' equipment and technology current. Fortunately, there are multiple medical equipment financing options that health care practices can use to make their equipment acquisitions more affordable.

Purchasing medical equipment
Purchasing medical equipment outright is very costly, especially when larger pieces of equipment can cost hundreds of thousands of dollars. If your medical practice is interested in purchasing equipment but doesn't have the capital assets to cover the expense, there are alternative financing options that you can leverage to help purchase your equipment. This includes taking out a business loan or equipment loan, using a business credit card, or taking advantage of a vendor-sponsored financing program or medical equipment financing company.

Renting medical equipment
Renting medical equipment is one alternative that you have to purchasing equipment outright. Renting is best for short-term usage. For example, you can rent a fetal monitor for a couple of weeks to monitor a patient in his home. The advantage to renting medical equipment is that you only have to pay for the equipment when you need it versus paying for the total cost of the equipment regardless of how much you use it. The main drawback is that you don't really have anything to show for your investment after the rental period is over.

Leasing medical equipment
Companies that are looking to form long-term business relationships with a medical equipment vendor can benefit from equipment leasing. Leases usually involve a bit more paper work, but generally provide more services than rental companies.

For example, maintenance, delivery and replacement services are typically offered with an equipment leases but not with rental agreements. Leases are also generally offered by professional equipment leasing companies who specialize in medical equipment. This means that the company knows their equipment, how to size equipment for specific clients, and how to transport and install the equipment properly. Rental companies, on the other hand, tend to rely on their customer's expertise with the equipment and offer little setup and delivery assistance.

Selecting the right medical equipment financing option
Selecting the right medical equipment financing option for your medical business is challenging. However, your budget and expectations are going to help you make an informed decision.

If you have excellent credit, an extended need for the equipment, and the ability to cover high monthly payments, financing a purchase is a good option. On the other hand, if you need an affordable option for certain equipment that you'll only be using for a short period of time, renting is most likely your best option.

BuyerZone can help you with your medical equipment financing needs. First, submit a free request for equipment leasing quotes. Then, meet with each of the lease providers we match you with. Once they provide you with your customized price quotes, select the one that's the best fit for your business.