Life-saving medical equipment shouldn’t be pushed beyond its life expectancy. Every second it operates beyond that point is an unnecessary risk for a medical practice. This is why quick equipment finance is popular nowadays as a way to replace old medical equipment. It lets medical practices get the funds they need for replacement straightaway.
However, not all medical practitioners are aware of how quick equipment finance works. For example, some steer clear of it because they fear it could lead into unmanageable debt. That’s understandable since quick equipment finance usually involves a lot of money. Medical equipment isn’t cheap!
In fact, a lot of medical practitioners just try to repair their old equipment instead.
However, they probably wouldn’t bother if they knew the flexibility of today’s quick equipment finance options. Quick equipment finance companies now exist that make the financing process easier than ever. If you’re a medical business owner and skeptical of equipment replacement through quick equipment finance, don’t fret. We’ll show you today how painless quick equipment finance can be under the right conditions.
Understanding Quick Equipment Finance to Replace Medical Equipment
Contrary to what many think, applying for quick equipment finance isn’t an overly meticulous process. In fact, it can be no different from applying for regular equipment finance. The difference between that and quick equipment finance lies in how swiftly approval and funds are given.
Most business owners generally prefer quick equipment finance if they can get it. It means they can get new equipment faster and potentially profit earlier. But there’s also the option of repairing old equipment. If done quickly enough, this might appear even more convenient to business owners than quick equipment finance.
So before we show you how to get quick equipment finance, let’s first consider the merits of repair and replacement for old medical equipment. This way, you can see if you should be seeking quick equipment finance in the first place.
Repairing vs. Replacing Medical Equipment
Firstly, you should know that there's usually an option to repair your medical equipment.
This can sometimes be cheaper than getting quick equipment finance to replace it.
You should always check if there are parts available to repair your old medical equipment. With the Internet, finding parts should be a lot easier. You should also check if there’s a repair professional or technician available in your area.
Finally, you should check if there’s a way to test the efficacy of the equipment post-repair. Although repair is an option for most cases, replacement through quick equipment finance is usually the best option when it comes to medical equipment.
This is because the cost of repairs could eventually sum up to an amount worth more than entirely new equipment. Your medical services could also be disrupted if you send out your equipment for repair. Worse, your practice’s performance may take a hit if the repair wasn’t as effective as hoped.
Being able to replace your old medical equipment can also mean keeping your equipment up-to-date. That’s a serious consideration in medicine, where innovations are constantly bringing about better healthcare results.
Understanding a Medical Equipment Loan
Now, if you want to get quick equipment finance, a medical equipment loan could help you out.
Such a loan would let you get the latest equipment for your specialization. It also lets you pay for your medical equipment in manageable installments over an extended period of time. Besides, quick equipment finance loans like this often have terms tailored for medical business owners too. You also get to have other benefits with a medical equipment loan, such as these:
- Security - You won't need to offer any other property or assets as security for your medical equipment loan. The equipment itself is usually the security.
- Loan amount - The loan amount will often be based on the value of the medical equipment, taxes and shipping. That said, the customer can also get 25% working capital on top of the equipment amount with some lenders.
- Deposit - Many lenders prefer to partner up with clients in the medical industry. This is because the medical industry is known to be a strong one. Therefore, lenders are more likely to offer no pre payment penalties.
- Interest - All medical equipment loans have a fixed interest rate.
- Loan Term - Medical equipment loan terms can get up to 84 months.
It’s also worth noting that equipment acquisitions usually have soft costs like special shipping, installation, and training. These are necessary costs that should be covered alongside the cost of the medical equipment.
Bank loans typically ask for these soft costs to be paid up-front. Financing equipment companies like Trust Capital, however, provide the option to include soft costs in the financing agreement.
That can help you manage your expenses even more effectively. The option to avoid large early payments is a benefit of quick equipment finance most will appreciate!
Vital Reminders When Replacing Medical Equipment
Even if it’s called quick equipment finance, you can’t just barrell your way into it. Ideally, you should still assess your assets and budget first. In other words, you need to plan equipment replacement via quick equipment finance too.
Among other things, consider replacing your medical equipment once the cost-benefit ratio becomes negative. This ratio decreases because of depleting reliability, increasing downtime, safety issues, and obsolescence.
Disposal of old equipment must also be planned in order to protect the people and the environment. This is because a lot of medical equipment often has radiation or chemicals. Therefore, the equipment must be decontaminated before disposal. Usually, the equipment itself will have instructions for how to do so.
You can also consider scrapping old medical equipment. Scrapping equipment also has its benefits, such as these:
- Acquiring spare parts for similar equipment,
- Training dummies, and
- Making donations to charity clinics or museums.
Ideally, you should have a qualitative approach to replacing medical equipment. So, determine if the new equipment you will finance will be worth more and will last longer before breaking down.
You should also keep technological advances in mind in order to avoid financing equipment that will quickly become obsolete. You’d want to focus on getting new equipment that will last longer than what you’re throwing out.
Resources for Equipment Replacement
Equipment replacement through quick equipment finance can’t be done in ignorance. You might make a mistake somewhere if you don’t watch what you’re doing. For example, you might waste money by replacing something that doesn’t need replacement yet.
Or you might endanger patients’ lives by ignoring the signs of equipment in disrepair. Luckily, you can use resources and guidelines such as Estimated Useful Lives of Depreciable Hospital Assets.
These guidelines can help you stay updated on the average life expectancy of equipment. You can also use guidelines such as a Guideline for Product Selection when choosing new equipment. These guidelines help you choose the best equipment to finance while staying up-to-date with the latest technology and getting the most out of your quick equipment finance.
Applying for Quick Equipment Finance
By now, your decision to get quick equipment finance to replace medical equipment is most likely settled.
Luckily for you, being in the medical industry has its own benefits when getting quick equipment finance. There are a lot of finance options available for medical practitioners due to the strength of the medical industry. Most equipment lenders even have specific loan packages with beneficial terms for healthcare businesses.
To help you out, you can consider the following before finalizing a quick equipment finance decision:
- Compare interest rates between finance options and lenders,
- Find out what fees apply for each loan type, and
- Understand the pre payment flexibility of your finance arrangement.
- Understand the type of buyout your agreement has and it's tax benefit.
Typically, lenders will consider the following when assessing a medical equipment loan application:
- The value and proposed use of the equipment, along with its projected useful life,
- Your financial circumstances and your ability to meet the ongoing repayments, and
- Whether or not the equipment will significantly increase the earning potential of the business.
- Whether or not you have financed something of this size before and how you repaid the debt.
So, as long as your application is clear and settled, you’ll get the quick equipment finance you need in no time!
Final Thoughts on Understanding Loans to Replace Medical Equipment
Almost everything has to meet its end, and medical equipment isn’t an exception. Luckily, you can always get new and improved ones with quick equipment finance! Sure, the option to repair your medical equipment will often seem like a better and cheaper option.
However, the cost of a replacement through quick equipment finance is often lower than the cost of repairs in the long run. There are even special loans available if you want to get quick equipment finance to replace your medical equipment. Many equipment lenders offer medical equipment loans.
However, you should always remember that planning is the key to everything. This includes planning every step to replace medical equipment through quick equipment finance. So if you need help planning or getting quick equipment finance, it’s best to contact equipment finance experts. Therefore, you should feel free to contact Trust Capital at (866) 458-4777.