Equipment financing is a great alternative to a traditional loan for businesses whose biggest costs lie in the equipment they need to run. Physicians, for example, may find that equipment financing is the best option for them.
What is Equipment Financing?
Equipment financing is a loan option that provides business owners with the funds they need to purchase the necessary equipment to launch their ventures or practices. The loan is secured with the equipment and the lender may take possession of the equipment if payment agreements are not met by the borrower. Many businesses that require expensive equipment to operate find equipment financing is the best option for them. A couple industries that can benefit from equipment financing include restaurants, bakeries, farms, hospitals, and physicians.
Not only is equipment financing a great way for new businesses to purchase equipment needed to get started, it can also help growing businesses get the latest, up-to-date equipment to help with operations and keep up with demands.
What are the Benefits of Equipment Financing for Physicians?
As a physician, the biggest expenses of running an office are related to the equipment required to test samples, perform checkups, and complete other services you offer. Although you may have to pay monthly rent for the office space, cover utilities, etc., the medical equipment you need costs much more up-front, and if you don’t have the cash, it can be a serious issue and concern.
Equipment financing takes care of this issue and offers other benefits for physicians including:
You don’t have to pay for the equipment up-front and all at once. Medical equipment is expensive, and you likely need at least a few pieces of equipment to get your new office running or replace old equipment that is outdated and can no longer be used. Paying for it up-front, though, is usually out of the question since even just one piece of equipment can cost much more than you have available to spend.
Equipment financing makes it possible for you to get the equipment you need without having to pay for it all up-front. It allows you to make monthly payments within your budget and own all the equipment you need instead of spending everything on only some of the equipment that you need.
You can keep more cash in your pocket. Equipment financing doesn’t require you to pay for equipment up-front, and because it’s one of the loan options that doesn’t require this, you find extra money. You can take out the loan and get the equipment you need without having to empty your pockets. Having that extra cash on hand could come in handy on a rainy day.
You can get new equipment and have peace of mind knowing it will work and function as intended. If you were purchasing equipment outright, you might have to wrestle with the decision to spend all your money on one of a few pieces of equipment you need in order to buy new or to purchase used equipment that is within your budget. Used equipment may save you money now, but the problem with used equipment is that you don’t always know if it will work as intended or when it’s going to break down for good. It can also be an issue if it’s not current enough since it won’t be compatible with other equipment or programs that you use.
Equipment financing makes it possible for you to get new equipment so that you can have the peace of mind knowing it will work as needed and will be compatible with the other equipment and programs you use. You may even be able to get the latest technology and enjoy the many benefits that new tech offers.
You may get tax benefits. When you go the route of equipment financing, you may potentially qualify to receive tax benefits. The government offers an annual tax deductionfor financed equipment of up to $500,000. If you qualify for a deduction, think about how much money your office could save, which could be used in other areas that need it.
You can get the money easily and quickly. When you go through other lenders, the approval and funding process can take weeks, leaving you in a tight spot until you’re able to get the money and buy the equipment you need. With us, though, it’s fast and easy. Thanks to our streamlined technology and express decision engine, you can get the money you need easily and quickly. If you want more information about equipment financing for your medical office, contact us now.