When it comes to financing or leasing a digital x-ray system, there are a few things you'll need to keep in mind. First, you'll need to decide whether you want to finance the equipment outright, or lease it. There are benefits and drawbacks to both financing and leasing, so it's important to weigh your options carefully. Because purchasing new equipment for your medical or allied health practice can be a daunting task, we thought it might be wise to put together some guidelines based on our experience over the past decade. Let us break down what financing options are available:
Outright financing your new x-ray machine
This type of financing option allows you to purchase the equipment outright, and then make monthly payments on it. The benefit of financing the equipment outright is that you'll eventually own it, and won't have to worry about making lease payments indefinitely. The downside is that it can be more expensive in the long run, since you'll be paying interest on the loan.
Leasing your digital x-ray system
Leasing is another financing option available to those looking to purchase new medical or allied health equipment. The benefit of leasing is that it's often more affordable in the short term since you're only paying for the use of the equipment, not the entire purchase price. The downside is that you'll never own the equipment, and will have to continue making lease payments until the end of the lease term.
At Patient Image, we have an in-house financing program that allows you to finance everything from your x-ray system to your DR panel, as well as any software that's related to the system; your acquisition software, viewing software, or even a PAC system. We can also include services like installation, lead shielding reporting, and even your electrical and building in-room buildout costs altogether in your financing.
If you have any questions about financing or leasing a digital x-ray system, please don't hesitate to contact us. We're more than happy to help you find the financing option that's right for you and your practice.
What lease options are available?
Many of our clients are interested in leasing digital x-ray systems. There are 4 popular options and each of them has its pros and cons.
One dollar buyout
A one-dollar buyout is an agreement with the bank or lender, where you lease the digital x-ray system for a certain period. This will normally last for 24 to 72 months. During this time, you will need to make a monthly payment to them. When your lease is up, you can buy the equipment from the company by paying them a small amount of money.
Fair market value lease
Another common way to lease a property is through a Fair Market Value (FMV) lease. This type of lease typically has a lower monthly payment, but at the end of the term, you will have to pay the FMV or whatever amount was agreed upon in your lease for the buyout. An FMV lease is good for someone who wants to be able to regularly renew or upgrade their equipment. You won't own the x-ray equipment, but you will have the option to buy it out once the lease term is finished.
Bank loans
You can also ask your bank for a loan to finance your x-ray equipment. Your local bank might offer you a loan with good terms, including the Small Business Administration (SBA) loan. If you qualify, the SBA loan can help you finance your x-ray equipment.
Equipment finance agreement
An equipment finance agreement lets you make monthly payments that are similar to the payments you would make for a one-dollar buyout agreement. But with the one-dollar buyout agreement, you don't own the equipment at the end of the term. However, once the term of the equipment finance agreement is up, you will own the equipment.
What type of lenders can I have access to?
When it comes to financing x-ray equipment, there are a few different types of lenders that you can turn to.
- Banks are a familiar and trusted option
- Independent leasing companies have raised money and have access to capital, so they can offer competitive rates
- Brokers work with multiple lenders, so they can find the best loan or lease for you
Bank Financing
One important factor that you should take into account before choosing an actual bank or lender, are their lending guidelines and policies; because these can affect your ability to get approved as well as what terms they offer on loans too.
There might be other places where people go than just banks such as credit unions, which typically have better rates but also stricter criteria required to be serviced.
Equipment leasing companies
Equipment leasing companies are more flexible with their credit because they borrow from banks or have their own funds. Equipment leasing companies are not regulated in the same way as banks, so they have a more open credit box and can work with people who have a more challenging credit history.
Equipment leasing companies have rates that vary depending on credit risk but are usually more competitive than traditional banks. Equipment leasing companies have variable rates that can be higher than traditional banks, but they offer an option for people with credit challenges.
Working with brokers
A broker is an individual or company that arranges loans between a borrower and a lender. Brokers have different rates depending on who they are working with. They do all the legwork for you when it comes to researching the different options available in the market and also can help with the finance application. They are a great option for people who need or want more assistance with their financial decision-making. Brokers make their money by finding loans for challenging borrowers, which means you will be paying a brokerage fee.
Other things to consider when financing or leasing
If you're in the market for leasing x-ray equipment, it's important to be aware of some of the tricks that lenders may use to get more money out of you. First, be sure to shop around and get multiple quotes before signing any lease. This will help ensure that you're getting the best possible deal. Second, be aware of hidden fees. Some lenders will try to sneak in extra fees for things like insurance or delivery. Make sure you read the fine print carefully so that you know exactly what you're paying for. Finally, beware of prepayment penalties. Some lenders will charge a fee if you decide to pay off your lease early. Be sure to ask about this before signing any paperwork. By being aware of these potential pitfalls, you can be sure to get the best possible deal on your x-ray equipment lease.
Beating around the bush
The end of a lease can be a confusing time for tenants. Unless the terms of the lease are spelled out, it's often unclear what steps need to be taken to avoid further charges. For example, many leases include an "end of lease" option that allows tenants to extend their lease for an additional period. However, unless the tenants take action to initiate this option, they may find themselves continuing to pay the same monthly rent after the original lease term has expired. This can be a costly mistake, so it's important to be aware of all the terms and conditions of your lease before signing it. By taking the time to understand your rights and obligations, you can help avoid any unwanted surprises at the end of your lease.
There is no such thing as a free lunch
When it comes to financing, there is no such thing as a free lunch. If you're offered 0% financing on a purchase, it's important to understand that you will ultimately end up paying for it one way or another. The equipment provider or vendor is likely increasing the price of their product to cover the cost of financing. So while it may look like you're getting a great deal, you're actually paying for it in the form of higher prices. Before taking advantage of 0% financing, be sure to do your homework and understand the true cost of the purchase. Otherwise, you may end up paying more than you bargained for.
Hidden fees or vague fees
Before signing on the dotted line for a loan, be sure to ask about all of the associated fees. Some fees, like documentation or filing fees, may be hidden in the fine print. To avoid being blindsided by additional costs, be sure to ask your lender to itemize all of the fees before you agree to the loan. In some cases, particularly if you have great credit and are working with a bank, those fees may be negotiable. So don't be afraid to haggle a bit to get the best deal possible. By being informed and alert, you can avoid paying more than you need to for your loan.
The advance-fee scam
The advance fee scam is a common type of fraud in which the victim is lured by the promise of easy financing. In reality, the so-called broker or loan officer requires an upfront fee in order to process the application. In some cases, the fee is non-refundable, even if the victim is not approved for financing. This type of scam can be especially costly for small businesses who are seeking financing for new equipment. Before agreeing to any deal, be sure to verify that the broker is legitimate and that there are no upfront fees required. If you have already been victimized by this type of scam, you should report it to the authorities immediately.
Bait and switch
Always be sure to double-check contracts before signing, even if you have read them over once already. Oftentimes, lenders will mention a one dollar buyout upfront, but then the documents they provide will be for a FMV lease with unclear end-of-term conditions that could result in the borrower having to keep paying recurring monthly fees. This is similar to a change in contract. If you're ever unsure about something in a contract, don't hesitate to ask for clarification. It's better to be safe than sorry. After all, there have been many instances where unfavorable conditions get added into contracts as changes without the borrower's knowledge.
Summary
When it comes to digital x-ray systems, there are a lot of options on the market. And while that can be helpful in finding a system that fits your needs and budget, it can also be overwhelming. So how do you know which system is right for you? And how do you finance it?
The first step is to understand your needs. What type of system do you need? How many x-rays will you be taking each day? What is your budget? Once you have a good understanding of your needs, you can start shopping around. Compare features and prices to find the best value.
Once you've found a few systems that meet your needs, it's time to start asking questions. Find out about warranties, service contracts, and financing options. Make sure you understand all of the terms and conditions before signing anything. And don't be afraid to negotiate – sometimes, you can get a better price by simply asking.
By taking the time to understand your needs and ask the right questions, you can be confident that you're making the best decision for your practice – and your patients.
