Financing medical and dental equipment for clinics and hospitals is essential to ensuring quality patient care. If you manage a healthcare facility, you know how important it is to have the latest medical and dental equipment to provide the best possible care.
That’s why it’s important that you find a financial institution that is knowledgeable and experienced in medical and dental financing to give solutions that are unique to you.
In this article, we’ll look at how leasing is an efficient, fast and cost-effective solution for managing the accounting of your medical or dental facility.
Do you need medical equipment leasing?
What is leasing for medical services?
This is a type of financing, defined in the Civil Code of Quebec, that can be used by healthcare professionals for their medical and dental facilities. It represents a quick and efficient solution to provide these establishments with the latest equipment and technology necessary to treat their patients.
The leasing contract is in fact a tripartite agreement between a lessee (the tenant), a lessor (the one who offers the financing) and a third party (the one who sells the property to the lessor).
Benefits of leasing medical and dental equipment
It is an alternative formula with benefits in terms of cash flow and taxation of equipment financing. It allows clinics to carry out financing operations, when they would otherwise not have had the financial means to do so.
What types of medical and dental equipment can I lease?
Many types of medical equipment and technology can be financed through leasing. Depending on the needs of your clinic or dental practice, certain terms of the lease agreement, such as possible term options or monthly payments, may vary.
Here are some examples of medical and dental equipment that you can finance:
- Medical diagnostic equipment.
- Blood analysis equipment.
- Scanners.
- Ultrasound generators.
- Radiology equipment.
- Life-saving equipment.
- Laboratory equipment.
- Chiropractic equipment.
- Optometry equipment.
- Veterinary equipment.
- CT scanners.
- Dental equipment, such as dental chairs.
and much more!
What are the benefits of leasing for medical and dental equipment financing?
You maintain your bank borrowing capacity
These types of financial services do not affect your ability to borrow from banks. This means that the amount you lease will not increase your borrowing capacity, allowing you to maintain your credit while financing the equipment you need for your clinic or practice.
You can benefit from tax benefits
With this type of financial service, your monthly payments are 100% deductible as an operating expense, unlike a purchase. This is a significant tax advantage that businesses can take advantage of to maximize their returns and give themselves the means to grow.
You can get quick approval responses
At least at Finco, we are confident that we can get you approved within 48 business hours, often the same day. In any case, we work as efficiently and quickly as possible to best meet your device needs.
Plus, you won’t have to worry about the variable interest rates typical of traditional medical and dental equipment loans.
Sales tax paid on the term
At the time of purchase, our lenders pay the sales tax for you. This means you can keep that money in your account and pay the tax on payments throughout the term.
FAQs about medical and dental equipment leasing
How to account for an equipment lease for clinics, hospitals and practices?
In accounting terms, leasing gives rise to the accounting of a royalty according to the periodicity provided for in the contract and, if the purchase option is exercised at the end of the contract, to the recording of a new asset. Certain information must also be included in the accounting notes.
How do you calculate the lease for your medical or veterinary facility?
The best way to find out about the periodic leasing payment is to contact us and we will offer you the best possible conditions, adapted to you and your project.
Does Finco work with veterinary clinics?
Yes, we have programs for veterinary clinics and livestock farms.