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3. What should you look for in a Chiropractic Equipment leasing/financing company?
The company must have a specific focus on the Chiropractic Leasing or Health care
industry, the ability to be your partner for the long-term, attentiveness to your
needs, an experienced sales staff, efficient customer service and ongoing relationships
with the top vendors in the industry.
A company that keeps you looking ahead, knows what new Chiropractic Tables,Chiropractic
Equipment, or a Chiropractic X-Ray Unit is coming into the market, possesses specialized
knowledge of the financing and equipment needs of chiropractors and will remain focused
on your best interests. After all, an investment in your future is an investment
in their future.
A company that is a "one-stop shop" and meets your practice's needs for Chiropractic
Tables,Chiropractic Equipment, or a Chiropractic X-Ray Unit,working capital and leasehold
improvements will save time and headaches in the long run.
The company must be able to offer a clean contract, a straightforward agreement without
any hidden clauses.
4. What does a Chiropractic Tables,Chiropractic Equipment, or a Chiropractic X-Ray
Unit leasing company look for?
Chiropractic Tables,Chiropractic Equipment, or a Chiropractic X-Ray Unit manufacturers
that sell and finance their products, leasing/financing subsidiaries of national
and regional commercial banks and other leasing and finance companies compete for
the business of the health care professional. When doctor specialists such as chiropractors
want to directly acquire relatively inexpensive equipment of $50,000 or less ,lenders
generally can make credit decisions based on financial statements or tax returns.
However, many banks and finance companies are not willing to make loans of $50,000
or less to medical specialists based solely on their personal worth and additional
collateral, such as a house.
Thinking of leasing Chiropractic Tables,Chiropractic Equipment, or a Chiropractic
X-Ray Unit? Whether you're launching, expanding or enhancing your practice, you'll
be faced with some tough financial decisions. Acquiring practice and office equipment
and furniture is challenging even to a business-minded DC. You must decide whether
to purchase outright, lease for a specified number of years or finance via an installment
purchase. You need to understand the features, benefits and even the disadvantages
of each type of financing. Then you must select a Chiropractic Tables,Chiropractic
Equipment, or a Chiropractic X-Ray Unit lender who understands your needs. These
matters are not usually part of the chiropractic college curriculum.
The following guide to Chiropractic Tables,Chiropractic Equipment, or a Chiropractic
X-Ray Unit acquisition will make the process simpler and help you make educated decisions.
Keep in mind you make money when you use equipment. You need not own the equipment
to receive the benefits of its use. This is the principal argument for leasing-plus
the fact that your monthly lease payments are usually tax-deductible, like rent.
By leasing you don't draw-down capital and may be in a better position to take advantage
of technological changes and thus avoid being trapped by obsolescence.
When you purchase Chiropractic Tables,Chiropractic Equipment, or a Chiropractic
X-Ray Unit rather than lease, you own the equipment from the start, but you are depleting
your working capital and reducing cash flow. This can leave your practice vulnerable
to the whims of the economy. It can also prevent you from taking advantage of opportunities
because you lack liquidity. It may be more beneficial to use your discretionary income
to fund your pension plan, rather than for the purchase of equipment.
Why should you choose Chiropractic Table Leasing or Chiropractic equipment leasing?
1. Leasing/Financing vs. Buying Your Chiropractic Tables,Chiropractic Equipment,
or a Chiropractic X-Ray Unit
Will you lease/finance Chiropractic Tables,Chiropractic Equipment, or a Chiropractic
X-Ray Unit or will you buy? Both leasing and buying have merits and drawbacks.
Buying with your own funds requires digging into your capital, depletes cash flow
and can be most costly in the end when you calculate the opportunity cost of the
purchase.
Leasing is a popular choice among health care providers. This makes it possible to
pay for equipment from current production, rather than past earnings. Thus, leasing
is attractive to small or private practices.
For the small practice, it makes sense to lease expensive items such as Chiropractic
Tables,Chiropractic Equipment, or a Chiropractic X-Ray Unit. Less expensive instruments
and pieces of equipment (costing under $500) are good candidates for purchase.
Chiropractic Tables,Chiropractic Equipment, or a Chiropractic X-Ray Unit is constantly
upgraded to meet increasingly stringent professional standards and requires routine
replacement for a practice to remain up-to-date. While state-of-the-art equipment
is imperative for modern practices, it will eventually need to be replaced and reselling
outdated equipment is nearly impossible.
In the past, when health care providers leased or financed equipment instead of buying
outright, it often meant they had bad credit. This is not the case today, as many
smart business people see that leasing or installment financing offers substantial
tax benefits. Leased equipment, listed as an expense on your income statement (as
opposed to an asset, like the equipment you own) is usually tax-deductible. One exception
to this rule, however, involves the relatively new tax law, IRS Section 179. Section
179 gives small business owners a break in that it allows them to deduct up to $18,500
(in 1998) of business asset purchases as current expenses. This allows for an immediate
write-off of capital assets. So depending on the amount of equipment you need, whether
you lease, finance or buy depends on the cost of the equipment. Your accountant should
always advise you on this issue.
2. Evaluate the lender Before Purchasing your Chiropractic Tables,Chiropractic Equipment,
or a Chiropractic X-Ray Unit.
An external lender with experience financing practices like yours will put costs
in perspective and will also help you be more productive in your practice.
You'll need extra attention in the early stages of financing your Chiropractic Tables,Chiropractic
Equipment, or a Chiropractic X-Ray Unit investment and will want to work with a qualified
finance company.
There are several questions you should ask to evaluate whether the finance company
has the experience necessary to guide you through tough financial decisions on your
Chiropractic Tables,Chiropractic Equipment, or a Chiropractic X-Ray Unit purchase
1. Does the finance company lend exclusively to Chiropractors or Other Health Care
professionals? A lender that focuses on the Chiropractic health care industry will
be able to look beyond traditional risk models and work with practices whose size
or financial history limits their access to large lenders.
2. How long has the company been in business?
3. How many customers has it financed? A company that has seen thousands of doctors
through challenging financial situations is uniquely qualified to respond to the
very specific needs of health care providers.
4. Is the company national in scope? A company's growth indicates success. Regional
companies may not have as broad a range of vendor and bank relationships.
5. Does the company provide financial resources and consulting services? Financial
services companies that specialize in working with health care practices understand
the competing demands of cash flow and growth and will work with even the smallest
ventures.
5. Chiropractic Equipment Leasing lingo.
As you evaluate your financing options, it is important to focus on terms, not price.
Two Chiropractic x-ray machines may have the same purchase price, but considerations
such as interest payments, make/model, etc., may make one a much better value for
your money. Keep the same thing in mind when you shop for a lease.
Lease documentation on Chiropractic Tables,Chiropractic Equipment, or a Chiropractic
X-Ray Unit varies widely between lessors. Some terms and conditions are absolutely
mandatory, but others are optional and negotiable. A Chiropractic Tables,Chiropractic
Equipment, or a Chiropractic X-Ray Unit lease should include purchase add-on options.
Traditionally Chiropractic Tables,Chiropractic Equipment, or a Chiropractic X-Ray
Unit leases have had original terms of 3-7 years, with five years being the most
common.
Generally, the leases are "triple net" leases in that the lessee is responsible for
the Chiropractic Tables,Chiropractic Equipment, or a Chiropractic X-Ray Unit maintenance,
insurance and taxes.
Most Chiropractic Tables,Chiropractic Equipment, or a Chiropractic X-Ray Unit leases
call for level payments during their term, usually on a monthly basis.
A "buck out" or "dollar out" capital lease transfers title to the lessee for a final
payment of one dollar.
Virtually all Chiropractic Tables,Chiropractic Equipment, or a Chiropractic X-Ray
Unit financing is structured on a fixed interest rate basis and is becoming more
popular as a method of payment. As always, check with your accountant!
In general, be sure that the terms the lender establishes for you reflect not only
your immediate requirements, but your long-term goals and growth plan as well.
6. Types of Chiropractic Tables,Chiropractic Equipment, or a Chiropractic X-Ray Unit
Leases.
Capital Chiropractic Tables,Chiropractic Equipment, or a Chiropractic X-Ray Unit
leases are those that meet the accounting criteria for "capitalizing" an asset on
the doctor's balance sheet. Capital leases are the same as debt and are carried on
the balance sheet as a liability, with the equipment shown as an asset; i.e., dollar
buying out leases.
Operating Chiropractic Tables,Chiropractic Equipment, or a Chiropractic X-Ray Unit
leases are those that do not meet any of the criteria of the capital lease and therefore
are not recorded on the balance sheet. Note that an operating lease on a Chiropractic
Tables,Chiropractic Equipment, or a Chiropractic X-Ray Unit is considered an expense
item on the income statement. Operating leases are best used to finance assets with
short useful lives (3-7 years).
7. The Chiropractic Tables,Chiropractic Equipment, or a Chiropractic X-Ray Unit Lease
contract agreement.
When the doctor (the lessee) enters into an agreement with a leasing company (the
lessor), the doctor provides the exact equipment specifications to the company, which
purchases the equipment from the manufacturer.
Usually, the leasing company takes an assignment of the doctor's purchase order.
This protects the relationship between the doctor and the manufacturer of the Chiropractic
Tables,Chiropractic Equipment, or a Chiropractic X-Ray Unit.
The doctor is responsible for arranging a maintenance agreement on the Chiropractic
Tables,Chiropractic Equipment, or a Chiropractic X-Ray Unit with either the manufacturer
or a third-party maintenance organization.
The lessee must also Have and Carry liability insurance on the Chiropractic Tables,Chiropractic
Equipment, or a Chiropractic X-Ray Unit, as well as insurance covering the value
of the equipment against casualty or loss.
Over the lease term, the lessee makes fixed payments to the leasing firm, usually
monthly.
Many leasing companies can support their customers with value-added services, such
as the financing of add-ons and upgrades and strategies for future equipment needs.
At the end of the Chiropractic Tables,Chiropractic Equipment, Lease you have three
options:
1. Return the Chiropractic Tables,Chiropractic Equipment, or a Chiropractic X-Ray
Unit to the lessor.
2. Renew the lease on the Chiropractic Tables,Chiropractic Equipment, or a Chiropractic
X-Ray Unit for an additional amount of time (usually at reduced rates).
3. Buy the Chiropractic Tables,Chiropractic Equipment, or a Chiropractic X-Ray Unit
outright as used equipment, usually at 10% of its original cost.
8. The bottom line.
The Chiropractic Tables,Chiropractic Equipment, or a Chiropractic X-Ray Unit Leasing
process, although challenging, has the potential to be a rewarding financial experience
especially now that you have a clue as to the "ins and outs" of leasing and financing.
After the administrative details are taken care of, you'll be able to focus on what
you do best: delivering top-quality chiropractic services to your patients.
Let Access Equipment Corp Be Your One STOP Shop for all Your Chiropractic Table
Leasing or Chiropractic Equipment Leasing needs!!!