Why Is Healthcare Equipment Leasing So Famous?
For the business owners who are looking to expand their business without significant cash outlay, leasing equipment is a quick and affordable solution. Nationwide about 80 percent of businesses lease some of their equipment while approximately 40 percent of the equipment is leased. As the equipment can be expensive to buy, has a long life, and will not return a profit for years, medical and healthcare professionals often prefer leasing equipment leasing to the rise of healthcare equipment leasing.
One of the main benefits of leases is flexibility. For almost every situation, a lease can be crafted. Some of the leasing companies will be able to structure the terms of the lease for matching the financial patterns if your company is a seasonal one. There are almost as many kinds of leases as there are customers due to the built-in adaptability of leasing. The following are five most important steps that will be applying to most equipment leasing transactions as the process itself is quite simple:
Determine the type of equipment you would like to lease
You should know the type of equipment you would like to lease before you start looking for a leasing company or start a lease application. For your business, you can easily lease any type of equipment that is important for your business. It is very important that the purpose of the equipment is for business use only and not for personal use when it comes to leasing which is for business. This is usually not an issue as the medical equipment stays in the office and is used for medical work.
Find a leasing company with whom you wish to work
The manufacturers of the equipment that you wish to lease would be the best place to begin with. Several equipment sellers have existing relationships with the leasing companies. You will never be bound to such links. Equipment can be leased through several leasing companies through any equipment seller and this is proved to be the most legitimate equipment seller.
Be prepared with the number of units of each type you would wish to lease as you prepare the list of several different equipment. You should never hesitate on how you would expect the lease of the equipment that would help your practice be a lot more profitable and also to explain what your intended use for the equipment is. Why you need a lease which is a lot more helpful will provide your equipment seller a clear picture.
Determine the tenure of how long you would be leasing the equipment and if you would be purchasing it at the end of the lease.
The industry standard is general 2-year; 3-year or 4-year lease and the longer the term would be the smaller will be the monthly payment as several leasing companies will offer specialized terms to fit the business needs.
If there is equipment that would be outdated in three years will never be having the 4-year option. You need to start thinking about equipment like you think about your employee is what the idea here is. To make your company money, pay them when they are working for it. You can easily ask your leasing company for a recommendation if you have questions about which option to select.
It requires information about your business and the owners of the company when it comes to the lease applications in general. The following are the things that you need to provide:
- The business bank accounts and other contact information.
- SSN and home address of every owners with simply over 15% ownership within the practice.
- Companies from whom you purchase from regularly whose bills you are paying on time, there are three trade references.
- Point of contact for your business you are in.
Finalize your application and start leasing
After having submitted a lease application, there are usually three types of replies that you would get from a leasing company:
- Approved: You will have to select the term and end-of-lease option which is your next step. Doctors are considered low risk credit-wise, so the approvals are quite common in several cases.
- Declined: You will have to consider a different financing method or the next steps would be in trying another leasing company. You need to keep in mind that every application will probably be involving credit check as it shows up on the credit reports of the owners.
- Further information is required: The leasing companies are more than likely interested in you as a customer if they ask for more information but these information are required to be comfortable while loaning you the money.
You will receive the lease documents once you have been approved, for your review and signature; you will also receive the lease documents. All the established terms of your contract should be well-understood by you and you need to keep in mind that every contracts are negotiable.