4. Better Risk Management for Risky Times—The risk of equipment ownership is a consideration for all healthcare leaders regardless of business cycles. Investing in large capital expenditures represents a big financial risk, especially to smaller hospitals. Even with low interest rates that make purchasing attractive, the potential consequences of ownership can erode the upfront benefits. Risks incurred from managing assets, such as inconvenience, inexperience, obsolescence and loss of profitability can be dramatically reduced through the transfer of equipment ownership to the equipment financing company. Financing removes many unnecessary risks, allowing hospitals and health systems to focus on their core competencies.
5. Outsourcing Equipment Management—Hospitals and health systems have cut back staff over the last few years, and most lack the resources or knowledge to efficiently manage and sell their old equipment and purchase new. The convenience of having equipment managed by a third party, such as an equipment financing company, essentially outsources the equipment management function.
6. Valued Equipment Consulting—Most importantly, the equipment financier can be considered a valued consultant, providing additional benefits through lifecycle asset management solutions. Financing companies can provide dependable asset management, which helps businesses track the status of equipment, schedule upgrades, and receive full equipment lifecycle services from installation to disposal.
7. Equipping Business for Success—Equipment leasing and financing plays a significant role in helping all types and sizes of commercial businesses in the United States to acquire the equipment they need with increased flexibility, regardless of business conditions. The role of the equipment finance industry in funding the capital expenditures businesses need to operate and grow contributes not only to businesses’ success, but to U.S. economic growth.
William G. Sutton, CAE, is president of the Equipment Leasing and Finance Association.