Guide to Medical Device Financing and Leasing
At Liberty Capital, we understand the unique challenges and opportunities that healthcare professionals face. Our financing solutions are designed to provide the flexibility and support needed to keep your practice or facility at the forefront of medical innovation.
Key Benefits of Our Medical Device Financing:
Customized Financing Plans:
- We offer flexible terms and competitive rates to match your financial situation and cash flow needs. Whether you’re a small clinic or a large hospital, we can customize a plan that fits your budget.
Fast and Easy Application Process:
- With our streamlined application process, you can get approved quickly and focus on what matters most—providing excellent care to your patients.
Preserve Cash Flow:
- Our financing solutions allow you to preserve working capital, enabling you to invest in other areas of your practice or facility.
Tax Benefits:
- Financing medical equipment can provide significant tax advantages, including potential deductions and depreciation benefits. Consult with your tax advisor to understand the specific benefits for your practice.
Access to the Latest Technology:
- Stay competitive by accessing the latest medical technologies without the burden of large upfront costs. Our financing solutions ensure that you can upgrade your equipment as technology evolves.
Medical Device Financing with Liberty Capital
Liberty Capital Empowers Healthcare Professionals with Flexible Financing Solutions no matter the credit and financial situation might be. We ‘re full in house suite boutique small business funding source who can tackle all forms of business funding needs under one roof without having to bank hop from lender to lender only to get turned down, or worse yet, your info get sold over and over to unscrupulous brokers.
In today’s fast-paced medical industry, staying ahead requires access to cutting-edge technology and equipment. Whether you’re upgrading existing devices or investing in new technology, Liberty Capital offers tailored financing solutions to help medical professionals and healthcare facilities acquire the equipment they need without straining their budgets. Using the wrong funds can be devastating and put you on the never ending cycle of debts.
Our goal is open your eye and see the difference when working with the right lender. You have more option that you think. When you use cash advance for equipment is a sign you are not using the funds properly.
What's a Medical Device Financing?
A business loan is broadly used by businesses attempting to borrow or acquire business capital. Even more so comingling personal debt and business debts. However, it’s important to understand that all types of loans involve a borrower and a lender, also known as a creditor and debtor.
Business funding options available to every business however knowing where to find them is the hard part. Navigating these types of loans options for the medical industry alone can be daunting because not every lender offers the same loans. Some lenders provide loans that others won’t, and credit requirements vary. For example, one lender might offer loans to those with lower credit scores, while another only works with borrowers who have excellent credit.
As a borrower, how do you determine a lender’s credit requirements? If you approach the wrong lender who doesn’t offer the program you need, you might have to start over, leading to “bank hopping.” This is a time-consuming process where business owners apply to multiple places in search of the right loan.
A business loan broker, like Liberty Capital, can guide you to the right loan for both short-term and long-term medical funding solutions. Let us help you find the ideal funding option efficiently, saving you time and effort. Liberty Capital Group, Inc. offers a range of financing solutions tailored to meet the diverse needs of business owners. Here’s a detailed overview of the top 10 loans and financing options available:
Financing Considerations When Acquiring Medical Device Equipment.
Equipment financing is one of many avenues a business owner can entertain when acquiring business essential equipment. A type of loan also known as “equipment lease” that enables businesses to acquire equipment without paying the full equipment cost upfront. This type of financing is crucial for industries that rely on heavy duty equipment and machinery, commercial equipment, medical equipment, commercial trucks and trailers, or technology hardware are just the few types of equipment that are typically financed when purchase.
Definition:
Equipment financing is a form of business financing for any industry, where you acquire business essential equipment for a specific term rather than purchasing it outright using borrowed or your own working capital. At the end of the term, you may have the option to buy the equipment, renew the lease, or return the equipment if there’s a buyout. Here are the top three forms of equipment financing.
FMV Lease – Fair Market Value – (True Lease): Payments are deductible as business expenses. No Section 179 deduction available because the lessee does not own the equipment.
***Alternatively, there is 10% FMV LEASE where regardless of the market value, your buyout is predetermined at signing rather than letting the Market Value dictate your buyout.
Dollar Buyout Lease: Treated more like a purchase for tax purposes. Lessee can claim Section 179 deduction.
Equipment Financing Agreement: Treated as a loan. Lessee can claim Section 179 deduction.
Leasing vs. Buying
Ø Equipment Leasing: Lower initial costs, ability to upgrade to newer technology, and tax benefits. Leasing companies may offer flexible terms like deferred payments. Your business can grow through financing without giving up equity or profit.
Ø Buying: Higher initial costs, lost opportunity to use cash for other profitable investment. Fixed asset shouldn’t be paid cash especially depreciating assets. Ownership of the asset yes but can’t monetize it for potential cashflow. You can collateralize it for other loans for better long-term cashflow funding.
Loans and Financing Options
Ø Bank Loans: Traditional financing through banks has the most competitive interest rates and terms; however, only for well-qualified borrowers who are well organized who can jump through hoops to get it. Going to the bank is guaranteed you’re going to an A Credit Lender. So, are you an A Credit borrower? Do you have your audited financial statements? Do you have personal financial statements prepped? How can you tell whether you’re bank approvable or not. Having good credit isn’t the only criteria they look at. Remember the “5 C’s” in credit underwriting requirements?
Ø Equipment Financing Companies: Specialize in commercial equipment. Equipment leasing and equipment loans my differ, offering tailored financing solutions like equipment finance agreement where it’s financing rather than leasing. There is no balloon or buyout at the end of the term.
Ø Vendor Financing: Many medical device manufacturers offer in-house financing options to make purchasing their equipment more accessible. Vendor financing doesn’t always cover those with low or marginal credit. Our Equipment Vendor Financing programs cater to all types of credit. Our credit requirements are wider than most the benefit of working with a reliable and trusted equipment loan broker.
Our small business financing experts are available to guide you through the funding Process.
Despite technological advancements, loans, especially in medical equipment financing for healthcare professionals predominantly involve personal interaction with an underwriter to ensure as fraud prevention. Automation may not suffice, particularly when dealing with a third party like the vendor and the complexities of equipment purchase. In such scenarios, business owners are often better served by collaborating with a Business Loans Broker like Liberty Capital Group, Inc., who can steer them in the right direction.
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Choosing the right financing company for your medical practice.
Choosing the Right Financing Company for your Medical Devices.
Research: Look for reputable financing companies with experience in the industry. Make sure lender or broker is licensed. Don’t pay for any deposit or application fee upfront.
Compare Terms: Examine the terms and conditions of multiple financing companies. It’s not what they say over the phone it’s what’s in the agreement that matters to you. To them it’s what they say, just sign and don’t worry about what I say. That’s not how it works with Liberty Capital. We make sure we explain the contract and the language of the terms should you need to understand, and all the lender’s financing disclosures explained.
Typical Equipment Financing Terms no matter where you go:
Ø Lease Term duration between 3 to 7 years.
Ø Most will not finance used equipment over 10-year-old, some go older.
Ø Equipment is not illegal or obsolete.
Ø Down payment will be requiring up to 40% for most start-ups.
Ø Down payment will be required for most low credit who are eligible to get an approval.
Ø Monthly payments with very little upfront capital outlay are hard to come by unless you have been in business long enough with strong credit.
Ø Interest rates ranges based on personal credit, equipment type, equipment age, whether you’re buying from a dealer or private seller.
Ø End-of-lease options- lease to own is always $1.00 buyout, or Equipment Finance Agreement where there is no buyout. Some states requires $101 buyouts.
Understanding Equipment Lease Agreements
Reviewing the lease agreement carefully before signing is critical to make sure you’re not signing an FMV Lease when the salesperson says dollar buyout but the contract is actual FMV or Fair Market Value. Key components to check include:
Ø Payment Terms: Understand the monthly payment amount and due dates.
Ø Interim Rent: Is there an interim rent, which is rent in between the time of the next billing from the date of acceptance or lease commencement.
Ø Maintenance and Repairs: Determine who is responsible for maintenance and repairs. Most equipment financing don’t apply unless warranty is added into the agreement and financing. If through the vendor, it will be through manufacturer warranty and services but not lender’s responsibility.
Ø End-of-Lease Options: Know your options at the end of the lease, such as purchasing the equipment for a dollar or $101 for some state like FL, renewing the lease it has a balloon, or returning the equipment.
Ø Early Termination: Be aware of any penalties for early termination of the lease. You may not pay any penalty for paying it early, but you’re still liable for the full term regardless of when you pay it off.
Ø Advance Payment: First and Last, security deposit or down payment might be required. Check your equipment lease agreement to make sure you are aware of any money upfront to consummate the lease financing agreement.
Ø Down Payment: Down payment reduces the amount financed.
Ø Security Deposit: Security deposit is typically refundable unlike down payment.
Credit Requirements for Startup Dental Practice Financing:
For startup companies, we require: Credit requirements Varies. Here’s how you get your ducks in a row to make sure you make it easy for the lender approve you.
Ø Business license or active business entity registration.
Ø Personal guarantees from all owners – history matters.
Ø Minimum 650+ credit score.
Ø No bankruptcies in the last 7 years.
Ø No unresolved tax liens.
Ø No judgments, or repossessions
Ø Sufficient Networth
Budgeting for Financing
v Initial Costs: Some leases require a down payment, security deposit or initial fees like admin fees, first and last. Factor these into your budget.
v Monthly Payments: Ensure your cash flow can comfortably cover the monthly lease payments. Does the equipment make money. Does it work all year round?
v Additional Costs: Insurance, delivery, sales tax and other additional warranty or services that might be included in the equipment financing purchase. Operating capital to manage the equipment and the machinery.
Additional financing benefits you can qualify for to conserver working capital.
Ø *$99 for the First 6 Months: Get started with minimal upfront costs for well qualified lessee.
Ø 90-Day Deferred Payments: Pay nothing for the first three months.
Ø **if you get disqualified for equipment financing you might have an option for a Working Capital Loans:
***Access short-term cash flow solutions for immediate cash need where your funds wired to your business bank account and you use it to purchase the equipment, leaving you a free and clear equipment. Working capital loans doesn’t specifically add the equipment into the UCC-1 Filing. Additionally, it doesn’t appear onto you personal credit.
Tips for Successful Equipment Financing Experience
Ø Plan Ahead: Start the financing process early to ensure all equipment is ready for your opening day. Provide credit and funding stipulations upfront. Don’t alter any documents. Get pre-approved early. Know you have the option to get financing.
Ø Contact your equipment dealer: Get an invoice/quote for the lender to review and approved. Apply with your bank so you know whether they’re an option or not for a peace of mind. Alternatively, if you know you won’t qualify at your bank, contact Liberty Capital Group, Inc.
Ø Vendor Approval: Each transaction a vendor must be approved. They want to make sure vendor is reputable who will deliver what you lease or purchase.
Ø Equipment Approval: Every financing transaction, equipment must be approved. They need to make sure a restaurant is not buying a restaurant equipment. A restaurant can’t buy a backhoe. It doesn’t make sense.
Ø Equipment must be business essential.
Ø Negotiate: Don’t just negotiate with the vendor, you can also negotiate with the lender. Don’t be afraid to negotiate lease terms to get the best deal possible.
Ø Consult Professionals Equipment Loan Broker: Work with a financial advisor or accountant to understand the financial implications of financing. They’re the best source for information on how you can maximize your financing options.
Medical Device Equipment Financing can be a strategic move for any business owner, providing flexibility and preserving working capital is a good cash flow management strategy.
By understanding the equipment financing process and carefully selecting your equipment and financing partner, you can set your business up for success faster, rather than waiting for cash to come by. Don’t let opportunity hold you back due to lack of capital. You have funding options with Liberty Capital. Contact us today. We’re ready to help your business grow and elevate to the next level. Best of luck! Liberty is your Freedom!
Bank Hopping for Equipment Loans: Why It’s Time-Consuming and How Liberty Capital Can Help.
Searching for the right equipment lender especially if you’ve already been turned down by your bank, by hopping from one bank to another just trying to figure out whether they will approval you can be a time-consuming and frustrating process, especially if you have challenging credit. Each application involves time-consuming paperwork and potential rejections. If you get turned down, how many more lenders will you apply to before seeking better options from a loan broker?
Special Financing programs
Ø $0 Down for qualified lessee
Ø 1 Advance Payment
Ø 90-day deferred payment
Ø $1 buyout, no prepayment penalty
Ø Monthly payment up to 5 years
Ø Equipment finance Agreement
Ø Low Admin and doc fee
Ø $99 for first 6 months
Working with an equipment loan broker like Liberty Capital can streamline the process, saving you both time and money. Brokers have access to multiple lenders that can structure any credit profile specific to you, even if your credit is less than perfect. With their expertise and network, brokers can navigate the complexities of loan applications and increase your chances of approval. You may not know all the intricacies of equipment financing thus a loan broker will be able to help you navigate.
So why go through the hassle of bank hopping when Liberty Capital can do the work for you, ensuring you get the best possible deal?
What do I need to apply?
1. ONLINE APPLICATION: You can fill out our application, upload and authorized us to process your application. We do soft-inquiry, and our lender will do hard inquiries once you are approved for Equipment Financing only.
2. Equipment Invoice or Quote for the truck or equipment you want to buy. Multiple vendors accepted. We’ll lump them into one monthly payment for you. We’ll accept bill-of-sale for some private sale.
3. Banks statements (3-4 months) – Proof income, proof of banking, and proof funds availability in case down payment is needed and to match for ACH Payment Drafting – as an auto pay.
Dental Equipment financing is vital for businesses that need expensive equipment to operate efficiently. Companies in construction, manufacturing, healthcare, and other heavy equipment-intensive industries benefit significantly from these financial solutions. Understanding the options and working with top financing companies can help businesses acquire necessary equipment while managing cash flow effectively.
When it comes to Dental Equipment Leasing, Liberty Capital Group, Inc. offers several advantages over traditional lenders:
Ø Corp-Only Availability: We cater exclusively to corporations, providing tailored financing solutions for businesses. Corp-only doesn’t apply to start ups. Corp-only doesn’t substitute for having bad credit. Corp-only doesn’t automatically apply because your company is corporation or LLC.
Ø Up to 120% Equipment Cost Coverage: Our financing options can cover not only the equipment cost but also associated soft costs.
Ø Flexible Funding Amounts: Access financing ranging from $250,000 with a simple one-page application to $5,000,000 with full financial statements.
Ø Quick Approval Process: Benefit from next day funding approval, ensuring minimal downtime for your operations.
Ø Approved Equipment Vendors: We work with approved packaging equipment vendors, streamlining the acquisition process for our clients.
Ø Lowest Industry Rates: Enjoy competitive rates for qualified borrowers, reducing the overall cost of financing.
Ø Eligibility for New and Used Equipment Financing: Whether you’re purchasing new or used equipment, we’ve got you covered.
Ø Minimal Impact on Personal Credit: Our equipment financing solutions do not appear on personal credit reports, preserving your personal credit history.
Ø No Early Payoff Penalties: Enjoy the flexibility of paying off your equipment financing or leasing early without incurring early payoff penalties.
Where can I apply?
1. ONLINE APPLICATION: You can fill out our application, upload and authorized us to process your application. We do soft-inquiry, and our lender will do hard inquiries once you are approved for Equipment Financing only.
2. Equipment Invoice or Quote for the truck or equipment you want to buy. Multiple vendors accepted. We’ll lump them into one monthly payment for you. We’ll accept bill-of-sale for some private sale.
3. Banks statements (3-4 months) – Proof income, proof of banking, and proof funds availability in case down payment is needed and to match for ACH Payment Drafting – as an auto pay.
Dental equipment financing involves securing funding to purchase or lease dental equipment needed for a dental practice. This can include items such as dental chairs, X-ray machines, dental lasers, and other specialized tools. Here are some common options for financing dental equipment:
Equipment Loans:
- Banks or financial institutions provide loans specifically for purchasing equipment.
- Often have fixed interest rates and repayment terms.
Leasing:
- Leasing allows you to use the equipment for a specified period while making regular payments.
- At the end of the lease, you may have the option to purchase the equipment, return it, or upgrade to newer equipment.
Manufacturer Financing:
- Some equipment manufacturers offer financing options directly.
- These can include lower interest rates or flexible payment terms.
SBA Loans:
- The Small Business Administration (SBA) offers loans that can be used for purchasing dental equipment.
- These loans typically have favorable terms and lower interest rates.
Business Credit Lines:
- A business line of credit provides access to funds up to a certain limit, which can be used for equipment purchases.
- You only pay interest on the amount you use.
Personal Loans or Credit:
- Dentists may use personal savings, personal loans, or credit cards to finance equipment purchases.
- This can be a quick option but may come with higher interest rates.
Vendor Financing:
- Some vendors offer financing solutions to make it easier to purchase their equipment.
- This can include deferred payments or installment plans.
