If you are thinking of medical equipment financing, then you should know that there are three forms of leasing that you can choose from. All these three forms have their own advantages and disadvantages. Below is a brief overview of what each one entails.
The first type is hire purchase; also known as lease purchase. Hire purchase is widely available and some people actually prefer it to other forms of financing. The agreement signed under hire purchase allows you to pay off the full amount for your medical equipment over a defined period. Once the period ends, the equipment will become yours as long as you stick to the terms and conditions of the agreement. Unfortunately, hire purchase is not as common as it was ten years ago since most people prefer full leasing contracts that will allow them to use the product without the hassle of having to own it.
The other type of lease is a finance lease. This is similar to hire purchase but the leasing company will remain the owner during the entire lease period. The agreement is usually structured in a way that you will pay off the whole value of the asset. For example, if you lease dialysis equipment worth $25, 000 you will pay the entire $25, 000 plus interest during the lease period. If at the end of the lease period you still need to use the equipment, you can enter into a second contract at a nominal fee.
Lastly, there is the contract hire lease. This is by far the cheapest option because it does not affect your capital. This is especially attractive to small and new businesses because the cost incurred will be reflected as monthly expenses. With this kind of a lease, you can enjoy using particular equipment at a much cheaper price. At the end of the lease, you can either choose to upgrade the equipment or choose to own it with a $1 buyout. This of course depends on your lease agreement.
Although the three different types of leases have their own advantages, contract hire seems to have a clear advantage over the other kinds of leasing. In most contract hire lease agreements, repair and maintenance is the responsibility of the supplier. In addition, a contract hire lease does not require you to make a down payment like is the case in hire purchase.
It is very important for any business to have access to the best equipment financing available today. With LeaseQ you will be able to link with several leading financing companies that are willing to give you pre-qualified quotes in less than a minute. All you have to do is use LeaseQ's lease quote search engine to find the best lease options for you. There are also equipment finance experts who are willing to give you any assistance that you require.
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