The COVID-19 pandemic highlighted the importance of hospitals and medical centres having access to the right medical equipment to treat their patients. More specifically being able to easily source that equipment when it is needed. Frontline workers achieved hero status while the difficult role of health administrators was also illuminated when details of issues surrounding procurement were revealed in the media.
Whether you’re a major hospital, large medical facility, pathology lab, radiology and scanning facility, specialist clinic or a general practice, it is essential that you be supported in the procurement of the equipment you require.
Depending on the structure of the business, a range of commercial finance products are available for the purchase of medical equipment, including:
All will feature a fixed interest rate base, a fixed monthly repayment, a fixed loan term and the option for a balloon or residual. Where they differ is in the treatment of GST, the tax deductibility of various elements, balance sheet entry and other accounting features.
Selecting which is best suited your facility will depend on the accounting system being used so this decision is best made in consultation with your accountant or chief financial officer.
While the cost of medical equipment is critical to meeting budgetary constraints, medical professionals prioritise purchasing equipment from a reliable, trustworthy supplier to ensure the integrity of the items. Sourcing finance should be undertaken in the same robust manner. Engaging with a lender that has your best interests as a priority, can provide an objective comparison of quotes and they have effectively conducted due diligence by sourcing offers from a wide range of sources.
Approaching only one or two lenders yourself can not only be time-consuming but limits your options for receiving the cheapest possible offer.
Using a finance broker to source finance is an extremely viable option for medical practices of all types. Brokers are available to all types of medical facilities – GPs, partnerships, public and private hospitals, medical centres, specialist clinics and large health corporates.
When selecting a broker, ensure they have the experience and expertise in the medical sector and that they are independent of any connection with a financial institution yet accredited with many. This is assurance that your interests are being addressed absolutely.
We know people who operate in the medical equipment finance area and have experience in sourcing finance for the sector. If you would like their contact details, please contact us.