Healthcare professionals in Kewdale understand that staying current with medical technology is crucial for providing quality patient care. However, the substantial costs associated with purchasing medical devices can strain practice budgets. Asset finance presents a practical solution for healthcare providers looking to acquire new equipment while maintaining healthy cashflow.
Understanding Asset Finance for Medical Equipment
Asset finance allows healthcare practices to spread the cost of medical equipment over time rather than paying the full purchase price upfront. This financing solution enables practices to:
• Acquire state-of-the-art medical devices without depleting cash reserves
• Preserve working capital for daily operations
• Take advantage of technology advances as they become available
• Plan budgets with fixed monthly repayments
At Freo Finance, we help healthcare professionals access Asset Finance options from banks and lenders across Australia, ensuring you receive suitable loan options for your specific business needs.
Medical Equipment Covered by Asset Finance
Asset finance can cover a wide range of medical equipment purchases, including:
• Diagnostic imaging equipment (MRI machines, CT scanners, X-ray equipment)
• Dental equipment and chairs
• Surgical instruments and devices
• Laboratory equipment
• Patient monitoring systems
• Ultrasound machines
• Office equipment supporting your practice
The loan amount typically depends on the equipment value, your practice's financial position, and the lender's assessment criteria.
Finance Structure Options
Chattel Mortgage
A chattel mortgage allows your practice to own the medical equipment from day one while using it as collateral for the loan. This structure offers potential tax benefits, as you may claim depreciation and interest deductions. The equipment serves as security for the finance, which often results in more favourable interest rate terms.
Hire Purchase
With hire purchase arrangements, you make regular payments throughout the life of the lease, with ownership transferring to your practice at the end of the agreement. This option provides:
• Predictable monthly payments for budget planning
• No large upfront capital outlay
• Ownership upon final payment
• Potential tax deductions for payments
Benefits of Asset Finance for Medical Practices
Cashflow Management
Fixed monthly repayments help practices manage cashflow more effectively. Instead of significant upfront expenditure, you can spread costs over the equipment's useful life while generating income from its use.
Technology Advancement
Medical technology evolves rapidly. Asset finance enables practices to upgrade existing equipment or acquire new technology without waiting to accumulate sufficient cash reserves. This ensures patients receive care using current medical standards.
Tax Considerations
Depending on your chosen finance structure, you may benefit from tax deductions on interest payments, depreciation, or lease payments. Consult your accountant to understand the tax implications of different finance options.
The Application Process
Applying for Asset Finance involves several key steps:
- Equipment Selection: Identify the medical devices your practice requires
- Finance Assessment: Determine the most suitable finance structure for your situation
- Documentation: Prepare financial statements, equipment quotes, and practice information
- Lender Evaluation: We present your application to appropriate lenders
- Approval and Settlement: Upon approval, arrange equipment delivery and finance settlement
Our streamlined application process aims to minimise paperwork while ensuring lenders receive all necessary information for assessment.
Factors Affecting Finance Approval
Lenders consider various factors when evaluating asset finance applications:
• Practice trading history and financial performance
• Equipment type and residual value
• Loan amount relative to practice income
• Existing debt commitments
• Practice location and patient demographics
Choosing the Right Lender
Different lenders offer varying terms, interest rates, and approval criteria. Some specialise in healthcare finance and understand the unique aspects of medical practices. Others may offer more competitive rates for certain equipment types.
Freo Finance maintains relationships with multiple lenders, enabling us to match your requirements with appropriate finance providers. This approach often results in more favourable terms than approaching a single lender directly.
Planning Your Equipment Purchase
Successful medical equipment financing requires careful planning:
• Research equipment options thoroughly before seeking finance quotes
• Consider ongoing maintenance and operating costs
• Evaluate the expected return on investment
• Plan for staff training on new equipment
• Ensure adequate insurance coverage
Buying new equipment represents a significant decision for any healthcare practice. Proper planning ensures the investment supports practice growth and patient care objectives.
Asset finance provides healthcare practices in Kewdale with flexible solutions for acquiring essential medical equipment. Whether you're upgrading existing equipment or expanding your practice capabilities, various finance options can support your objectives while preserving cashflow.
Call one of our team or book an appointment at a time that works for you to discuss your medical equipment finance requirements.
