Hire Purchase and Leasing is widely used by practices to fund all types of medical equipment and this method of finance can also be used for furnishings, office equipment telephone systems and computers. There are significant tax benefits in doing this and an explanation of these benefits can be found throughout the site and especially in the section on ‘Tax Planning’.
Most lenders rely on the trusted advice of brokers and also need their experience in setting things up. Rates and terms for HP and Leasing are both competitive and fast to arrange. With minimal arrangement fees, flexible payment plans and clear tax benefits, this is a proven alternative to more traditional and often cumbersome bank loan options.
Equipment suppliers also rely on experienced brokers and trusted relationships between suppliers and brokers can take years to forge.
The medical equipment trade has been likened to being a member of a long-established club and it takes many years to build a reputation within the trade.
Brokers and lenders know their suppliers as closely as they come to know and understand their customers. This is a vital trade alliance and should be of great comfort to all buyers of equipment seeking finance advice. Take this into account when planning a project.
Equipment finance can be set up in the knowledge that all the people involved in the project are working in harmony together.
Customer’s accountants will endorse the finance, provide recent accounting information and confirm the taxable benefits.
Suppliers will also be confident that a competent broker is managing the project and be reassured that they will be paid promptly on completion.
Tips for Arranging Equipment Finance
- Obtain a finance quote first to ensure the equipment you are buying is affordable
- One deal can be set up to pay several different suppliers – this is ideal for larger projects
- Choose known suppliers who can reliably service and maintain the equipment
- Furniture and cabinetry is easier to finance when it’s combined with medical equipment
- Check with your finance broker or accountant which type of finance suits your tax position
- Always arrange the finance first before you order any of the equipment
- Suppliers may ask for a deposit with the order - and this can be refunded after installation
- Equipment finance in new-start practices should be leased as it improves tax benefits later