Comprehensive Guide to X-ray Machine Leasing for Private Practices and Clinics.
| Business Loans | Equipment Leasing | Merchant Cash Advance |
| App Only | $75K | $250K | $150K |
Underwriting Difficulty | Median | Median | Basic |
Pre-Credit Docs | Application, Tax Returns, Statements | Application, invoice, bank statements | Application, bank statements |
Credit Minimum | 650 | 600 | 500 |
Time in Business | 2 years | Start-up Ok! | 6 months |
Payment | Weekly/Monthly | Monthly | Daily/Weekly |
Min Monthly Revenue | $50,000 | Pre-revenue OK! | $5,000 |
Needed To Fund | VC, DL, proof of ownership | Vendor invoice, VC, proof of ownership | VC, DL, proof of ownership |
Maximum Term | 3-5 Years | 5 Years | 6-12 Months |
Choosing the Right Financing Company for your Clinic.
Ø Lease Term duration between 3 to 7 years.
Ø Most will not finance used equipment over 10-year-old, some go older for some medical equipment.
Ø Equipment is not illegal or obsolete.
Ø Down payment will be requiring up to 30% for most start-ups.
Ø Security Deposit will be required for most low credit who are eligible to get an approval.
Ø Monthly payments
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 require $101 buyouts.
Benefits of Leasing X-Ray Equipment
Benefits of Financing X-ray Equipment
- Preserve Working Capital
- X-ray Equipment Financing allows businesses to keep cash reserves for other operational needs or unexpected expenses like payroll, taxes or other immediate cashflow needs.
- Tax Advantages
- Section 179 Deduction: Businesses can deduct the full purchase price of qualifying equipment purchased or financed during the tax year.
- Depreciation: Financed equipment can still be depreciated, providing additional tax benefits over time. Always consult your tax professionals.
- Cost Savings Analysis
- Monthly Payments vs. Lump Sum: Spreading the cost over time reduces the immediate financial burden and aligns expenses with revenue generation.
- Interest Rates: Financing often comes with competitive interest rates, making it an affordable option compared to depleting savings. Interest can be part of the tax benefits, so if interest cost is tax deductible, you’re getting a discount on just that alone or tax credit.
- Growth Potential
- Minimal Upfront Capital: By financing, businesses can acquire necessary equipment without significant initial investment.
- Expanding Services: New X-ray equipment can enhance service offerings, attract more clients, and increase revenue.
- Operational Efficiency: Modern X-ray machines improve diagnostic accuracy and speed, leading to better patient outcomes and higher throughput.
- Avoiding Equity Dilution
- Financing equipment means business owners don’t have to give up equity or profit to investors, maintaining full control over their practice. If you get investor your cost of capital is not just one time but could be lifetime. It’s not worth going for investor as you are giving up huge for the sake of cost saving on interest.
Leasing X-ray equipment is a strategic approach that allows medical practices and clinics to upgrade their diagnostic capabilities with minimal upfront costs. By preserving working capital, leveraging tax advantages, and avoiding equity dilution, businesses can enhance their service offerings and foster growth.
How Equipment Leasing Works for X-Ray Machines.
Financing Considerations When Acquiring X-Ray Machine.
X-ray 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 Trailer 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.
X-Ray Leasing Application Only up to $250,000
Easier to get than a traditional bank equipment leasing
Less paperwork
Fast processing time
Less stringent requirements for qualifying
No collateral needed, the equipment is the collateral
May require less credit score for you and your business as well
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:
- Payment Terms: Understand the monthly payment amount and due dates.
- 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.
- 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.
- 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.
- 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.
- 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.
- Down Payment: Down payment reduces the amount financed.
- Security Deposit: Security deposit is typically refundable unlike down payment.
Budgeting for Leasing
- Initial Costs: Some leases require a down payment, security deposit or initial fees like admin fees, first and last. Factor these into your budget.
- Monthly Payments: Ensure your cash flow can comfortably cover the monthly lease payments. Does the equipment make money. Does it work all year round?
- 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 leasing benefits you can qualify for to conserver working capital.
- *$99 for the First 6 Months:Get started with minimal upfront costs for well qualified lessee.
- 90-Day Deferred Payments:Pay nothing for the first three months.
- **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.
Credit Requirements for Startup Financing X Ray Machine:
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.
- Business license or active business entity registration.
- Personal guarantees from all owners – history matters.
- Minimum 650+ credit score.
- No bankruptcies in the last 7 years.
- No unresolved tax liens.
- No judgments, or repossessions
- Sufficient networth
Tips for Successful Equipment Financing Experience
- 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 Know you have the option to get financing.
- 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.
- 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.
- 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.
- Equipment must be business essential.
- 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.
- 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.
Equipment financing can be a strategic move for any business owner, providing flexibility and preserving working capital is a good cashflow 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!
Get Started Today!
If you’re seeking a reliable funding partner for your x-ray machine leasing needs, apply online today or call our Funding Specialists at 888-588-4128 for personalized assistance. Let Liberty Capital Group, Inc. empower your business with comprehensive financing solutions tailored to your requirements.
Our small business financing experts are available to guide you through the funding Process.
Despite technological advancements, loans, especially in xray equipment financing, 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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Are you an Xray Equipment Vendor?
If you sell new or used X-ray machine or other medical equipment, we’d love to partner with you to offer highest approval rate for your clients. Our goal is to get them approved no matter what their credit profile might be. Working with Liberty Capital will give you a wider credit window so you can stop shopping for your clients. We do soft-inquiry for each applicant.
- Check out how you can grow your vendor business using our financing options. View our credit guidelines
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