Acquiring new medical equipment and technology is critical for healthcare providers. In addition to the selection process for the new equipment, obtaining funds or choosing the best funding approach is often a difficult challenge. Nearly 80% of US businesses lease finance at least one piece of equipment. With the high cost of medical equipment, leasing can be a great alternative to large cash expenditures and significant down payments.
At K2 Capital, our leasing programs allow medical providers to finance 100% of the equipment's purchase price. In addition, our financing generally can be allocated for other soft costs like shipping, installation and software.
Leasing can be an attractive option when you consider the following benefits:
1. Conserve Capital
Equipment leasing lets businesses keep existing capital for investment or other planned expenses and provides flexibility to meet changing market dynamics. It allows businesses to generate revenue and income from an asset without owning it.
2. Preserve Credit
Obtaining and maintaining credit lines provides both a safety net for the operation of the business and fuel for growth. Leasing provides a new source of credit, allowing businesses to keep existing bank lines intact for other projects and needs.
3. Make Technology Affordable
Equipment can be acquired via an affordable monthly lease payment. Moreover, business owners can better manage monthly cash flows by matching revenues with operating expenses.
4. Enjoy Tax Advantages*
Some healthcare providers need new equipment financed but do not want the asset reflected on the balance sheet. Many equipment leases can be structured so that the lease expense is accounted for as an operating expense with no impact on the balance sheet.
5. Avoid Technology Obsolescence
Advances in medical technology are constant. Healthcare providers need to stay current to compete, to improve patient care and to attract and retain the best personnel. Leasing provides additional flexibility to acquire the latest technology affordably.
*Please consult your tax advisor or accountant prior to making any purchase/lease decision.
Bank Loan |
True Lease |
Shows as debt on personal credit |
No effect on personal credit |
Usually requires 20% down payment |
100% financing |
Variable rates will increase payment |
Fixed rate and payments |
Hard assets only |
Can include software and soft costs |
Long approval process |
Generally a 1-2 day approval process |