The SECRET to low interest rate medical equipment financing is… going DIRECT to a finance company like Adia Capital.
Most medical equipment companies, not matter what they sell offer financing of their own of course. But the farther away you get from the finance broker in the process, the more your payment will be.
When you purchase ANYTHING it’s always more cost effective the closer to the source you get.
Like if you went to a grocery store, you’ll probably pay more for the produce you buy then if you went to a farmer’s market. Vendors at the Market usually cherry pick the best deals from local farmers and offer them to THEIR customers.
A finance broker like Adia Capital is in a similar position. We work with a variety of banks and other financial institutions that “produce” the money you need to buy or lead medical equipment. Then help you find the best deal on what you’re looking for.
In this scenario, the equipment dealer is like a retail grocery store when it comes to financing. Because they’re going to come to a broker like us (Farmer’s Market) and THEN offer the produce to you.
What Kind of Equipment can be Financed
Just like any business, new physicians’ offices and clinics need equipment for the initial set up – but a GROWING practice needs updated systems and more of what keeps the practice running.
Here are just a few common items that a practice or clinic might need that is typically easily financed:
And those are just the most common ones! We’ve financed common and rarified specialty medical and diagnostic equipment.
Medical Equipment Leasing Top Questions
Leasing and financing are slightly different.
You can think of financing as a traditional loan – like purchasing a new car. You contract with the dealer for the purchase price and then find the financing terms you’re looking for.
Once your finance contract is complete – usually 60 or 72 months – you now own the car.
Leasing medical equipment works the SAME WAY as auto leasing.
In exchange for lower payments, you contract for the Use of that equipment for the term of the lease. At the end of the term you do NOT own the vehicle (medical equipment). But you do have the option to purchase at that time.
In the end, you typically will pay more in interest rate and for the entire purchase when you lease vs when you finance.
Normally, it’s better to finance. Since Adia Capital deals in both financing and leasing equipment, we can help advise you on the best option for your specific situation.
Most of the dealers and manufacturers we work with wrap those costs into the equipment financing package – so yes!
This answer is the same for leasing equipment and financing it.
You choose the equipment you need to help start or grow your business. Then find a dealer you want to work with and negotiate a price. [don’t forget training, installation and shipping]
Next, visit our secure Applications Page and fill in all the information.
Believe it or not, we can often have an approval for you in FOUR HOURS!
Then we’ll work directly with your chosen vendor to arrange payment.
Clinics, Practices and Hospital Equipment Differences
From a financing perspective, whether you’re setting up a new emergency clinic location, expanding your private practice or even outfitting a new hospital, it’s all treated the same way.
You’ll make the same initial purchase decisions and deals with your medical equipment vendor. And complete the same application form here on the website or over the phone with one of our financing professionals.
The criteria for getting financed, and qualifying for great interest rates on your loan, are consistent:
Just make sure that whoever is filling out the application and signing the finance or lease agreement is authorized to do so. That’s typically not a concern with smaller practices or private clinics, but verification may be requested from larger organizations.
Don’t Forget Section 179 Savings
Tax Breaks for Equipment Purchases
Section 179 is a section of the IRS tax code allows businesses to deduct up to $1,080,000 in qualified equipment purchases from their taxable income for the year.
And yes, this applies to medical equipment purchases as well – whether you buy it outright OR finance.
Normally you would depreciate medical equipment over 5 years or more. Which spreads out your tax savings over that same time period.
But 179 of the tax code allows you to take the entire amount as a deduction in the year the equipment is purchased and put into service. [Consult a tax professional for details].
What we have noticed over the years is that most medical professionals don’t think about the tax aspect of new equipment purchases unless they’re doing it in the 4 quarter. This can be a mistake because factoring in taking that BIG tax break the first year you own the equipment can allow you to buy bigger, buy more, or buy sooner.
And the ability to invest more in your practice because you can take those taxes off the top can help propel your growth!
You can read more about Section 179 and how financing makes that an even bigger win here.