5 Medical Equipment Leasing Myths (And the Truths Behind Them)
Done right, leasing medical and healthcare clinic equipment (or most other business equipment) is not super complicated. Yet for a number of reasons, many clinic owners and managers get confused or uptight when discussing the subject.
I see it all the time – and my job is to give clarity. (People tell me I’m pretty good at it. Maybe all those years of experience are good for something…)
Here are my top 5 medical and clinic equipment leasing myths, and the simple reality behind each one.
Myth 1: Medical leasing is much more expensive in the long run than buying the equipment outright.
Truth: When you do the math, it’s not substantially more costly to lease medical clinic equipment than it is to pay cash. On bigger purchases, the lease rates tend to go down, making it good value. Plus, there is a cost to paying cash. Not only might you have less of a write-off, but by tying up your cash in clinic equipment, you cannot put those dollars to work in other ways. Try out our equipment lease payment calculator to instantly see what you might pay on a given purchase: it’s probably less than you think.
Myth 2: You cannot write off lease payments and own the equipment at end of term.
Truth: The CRA is quite clear about how capital lease payments can be expensed, and what differentiates a lease from a purchase. Our clients are usually able to expense 100% of their monthly payments, and the vast majority buy the equipment at end of term. You should always talk to your accountant to determine if it is best to treat the equipment as rented or as a capital asset, and we offer flexible buyout options so it all works out in your favour.
Our clients are usually able to expense 100% of their monthly payments, and the vast majority buy the equipment at end of term.
Myth 3: If I lease clinic equipment, it will reduce my available financing for other things.
Truth: Leasing equipment with Minerva does not impact your line of credit, and as it usually does not even appear on your credit report (as long as you make payments on time), it will not affect what is available for you to borrow or finance in the future.
Myth 4: Applying for a clinic or medical equipment lease is the start of a long and painful process.
Truth: Some lease companies’ applications can be pretty bad – and if that’s your experience, you are going to love dealing with Minerva. We pride ourselves on a simple, straightforward application. And our approvals happen quickly, often within one or two business days. Once you’re approved, you shop for your best deal and we purchase it for you, so that you are never out of pocket. We love when clients tell us (and others) how much they’ve enjoyed the Minerva Leasing process!
Our approvals happen quickly, often within one or two business days.
Myth 5: Leases are not for startups, and are best suited to very large purchases.
Truth: Any business, old or new, can qualify for a capital equipment lease with Minerva, and the lease amount can start as low as $1,500. There is no maximum amount, so even if your clinic or other business needs equipment costing millions of dollars, it may be possible.
There are other myths, and I would love to answer any of your leasing questions.
The bottom line is that it’s easy, tax-smart and friendly when you lease medical or clinic equipment with Minerva.
Call me at (780) 439-1552 or send an e-mail with the form below and I’ll respond to you quickly!