Benefits of Medical Equipment Leasing and Financing

Medical equipment leasing, rather than buying, is a ready solution for hospitals, practices and other medical institutions that may not have sufficient liquid funds at their disposal to purchase the latest machines and diagnostic instruments. Leasing is, therefore, one of the more convenient solutions that give easy access to the newest assets, thereby promoting trust among the practice and the patients.

This article details the primary benefits of leasing medical equipment in order to help healthcare professionals and medical facilities make an informed decision:

Saves money

The most important advantage of leasing is that it’s a cost-effective mode of finance, wherein the lessee need not make a lump sum payment at any point in time. All the instalments towards the payment of the leasing fee are fixed and spread over the entire tenor of the agreement (or till the contract is renewed by the parties). This prevents any unforeseen spike in the total cost of the equipment (owing to sudden inflationary tendencies in the economy). Here, the funds saved can then be re-invested in other critical assets or ploughed back into the operations.

Certain lenders offer high-value loans that healthcare professionals and their practices can avail to lease the most advanced medical equipment that is essential to meting out quality treatment. For instance, Bajaj Finserv Business Loan for Doctors sanctions up to as much as Rs.30 lakhs subject to competitive doctor loan interest rates and spread over a flexible tenor ranging from 12-96 months. The loan can be used for a variety of objectives – be it buying new machinery or integrating technology into practice.

Gives easy access to the latest equipment

Considering the recent technological boom, it now takes little time for even the newest equipment to become obsolete. So much so, equipment bought even a year back could be rendered dated and defunct. With a one-time purchase, the user might be stuck with an outdated machine, simply because of the quantum of funds parked in it.

Medical equipment leasing takes this scenario out of the equation, leaving open the possibility of trading it every time newer technology hits the market. The flexibility to leasing cannot be disregarded as well; it is completely up to the lessee what they might want to do upon expiry of the contract. Healthcare professionals can either purchase the asset or turn to another lessor for a second lease term.

Zero or negligible maintenance costs

It is the usually the lessor (doctors and practitioners in this case) that takes care of the asset’s routine maintenance and repairs. However, handling and repair charges can sometimes not be categorically mentioned in the lease agreement; the very reason why it is advisable to read the fine print carefully.

However, the combination of all routine expenses can still be expensive, especially with new-age machines that could cost well into lakhs (even crores, sometimes).

This arrangement allows practitioners to borrow from within a sanctioned limit (as per their requirements) and pay interest only on the withdrawn amount and not the entire loan corpus. It also has the provision of the principal holiday on the EMIs for the initial part of the tenor. Doctors and medical professionals can make use of the surplus funds to settle the extra maintenance, as well as installation and training costs, for that matter.

Whether doctors operate out of their own office or a healthcare facility, medical equipment leasing can offer a host of benefits. Certain lenders such as Bajaj Finserv entail easy eligibility criteria for a doctor loan and minimal documentation, coupled with exclusive pre-approved offers and cash-in-bank guarantee within 24 hours of document verification.

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Anuj Joined: January 5th, 2018