subject: Is Renting Medical Equipment the Right Choice for You? [print this page] Is Renting Medical Equipment the Right Choice for You?
Healthcare facilities require lots of medical equipment. This is true of nursing homes, doctor offices, physician groups, hospitals and stand-alone clinics, to name a few. Today there are more options ever before for financing or leasing medical equipment. Understanding the differences and choosing the right financial vehicle instrument is critical to managing cash flow of the practice, maintaining the equipment, getting updated equipment, and disposing of it when no longer needed.
The major fork in the road for medical equipment is the choice between financing with loans or a program for medical equipment leasing. Both options are available from lenders across the country. Although both instruments achieve the goal of providing equipment to the medical practice there are some significant differences to consider. In particular a new form of financing - the Equipment Finance Agreement (EFA) - has gained popularity in the last few years.
An EFA is a loan document that takes the place of a loan agreement, note and security agreement. In essence it makes the lender the lien-holder and puts a security interest against the equipment. Once an EFA is completed, your business owns the equipment from day one.
A Lease is simply a contract conveying property to another for a specified period of time. In this contract your business acquires the use of, but does not own, the equipment in question. You usually will have the option to purchase the equipment at the end of term - or to return it to the provider.
Whether you need short-term renting or long-term leasing, Davis Medical can provide your practice with the best rental or lease plan for medical equipment. We will help you lease great medical equipmentquickly and without any hasslefrom our large inventory of new and refurbished equipment.
