Medical equipment leasing

Healthcare is a huge industry in the US, covering everything from pediatric and senior care, to dental, vision and audio, with a vast array of equipment utilized by professionals who work in the sector.

Chris Godfrey

Page written by Chris Godfrey. Last reviewed on July 19, 2024. Next review due October 1, 2025.

Because this equipment can be expensive, many medical providers choose to lease the machines and tools they need using a medical equipment lease. This type of financing reduces strain on cashflow, provides practitioners with the latest devices, and helps to continually improve the efficiency and quality of the healthcare we receive.

What is classed as medical equipment?

The main categories of medical equipment are electronic, diagnostic, surgical, durable medical equipment (DME), acute care, IT hardware and software, storage, and transport. However, no matter what it’s called, almost every type of medical device can be obtained with a specialized medical equipment lease.

Advantages of leasing medical equipment

Paying for medical equipment out of valuable working capital does not make business sense, which is why thousands of medical SMEs secure the devices they need with a flexible, cost-effective, medical equipment lease. This type of financing offers a host of unique advantages:

  • Take the strain off cashflow and protect valuable working capital.
  • Medical equipment leasing often offers lower monthly payments than finance loans.
  • Can be the most tax-efficient way to buy the equipment you need.
  • Gives you the option to return or buy the equipment at contract end.
  • Can sometimes be extended to match dips in cashflow.
  • Can give you the medical equipment you need very quickly.
  • 100% lease may be available – no deposit necessary

Medical equipment leasing products

Healthcare providers seeking to lease their new medical equipment can choose from two types of medical equipment leasing products:

Operating lease

This is a long-term rental agreement with an option to buy at contract end. The lessee (you) pays a fixed monthly sum for use of the equipment and for a set period of time (12, 24, 36 months etc). When the contract expires, you may either buy the equipment for its fair-market value, extend the rental for a further 12 months or more, or you can simply return the device(s) to the lessor (the equipment provider) with nothing more to pay. (Subject to any usage limitations). 

  • Fixed payments for easy accounting and cashflow management.
  • Absolute lowest payment.
  • Set contract period to aid financial planning – supports your budget.
  • Latest equipment.
  • Option to buy, continue renting, or return the equipment at contract end.
  • Simple agreement.

Capital lease

This is also long-term rental agreement, but you automatically buy the equipment for a pre-agreed ‘buyout fee’ (often as little as $1) at contract end. You pay a fixed monthly sum for use of the equipment and for a set period of time (12, 24, 36 months etc). When the contract expires and you have paid the buyout fee, the equipment is yours with nothing more to pay. 

  • Fixed payments for easy accounting and cashflow management.
  • $1 buyout at end of the contract in many cases.
  • Set contract period to aid financial planning – supports your budget.
  • Latest equipment.
  • Simple documentation.
  • Excellent option for those wishing to buy but with insufficient cash at time of purchase.

Is leasing medical equipment right for your business?

Your financial plan will determine which method of medical equipment funding is best for you. If you want to add the equipment to your balance sheet and own it outright as soon as the loan is paid off, a finance loan may be the way to go. However, if you want the lowest monthly payments, the biggest tax deduction, the option to buy or return the equipment when the contract ends, and you wish to avoid the potential liability of owning obsolete medical machinery, a flexible, medical equipment lease may be best for you.

Get started with Swoop

Medical equipment leasing is a specialist financial area with differing rules of application and requiring deep knowledge of this business sector from the lender. US medical SMEs seeking funding may find themselves forever searching and making applications to lender after lender without success. The delays this can create could cause them to lose revenue and leave their business vulnerable to competition. Instead, working with a broker, who can access medical equipment leasing from a wide range of lenders is a better way to go. No more cold calls and endless demands for information, just tell us what you need and leave the rest to us. 

Give your practice the equipment it needs to grow. Register with Swoop to find the best rates, the best terms and the best medical equipment lease today.

Written by

Chris Godfrey

Chris is a freelance copywriter and content creator. He has been active in the marketing, advertising, and publishing industries for more than twenty-five years. Writing for Wells Fargo Bank, Visa, Experian, Ebay, Flywire, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of US consumer and business finance.

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