Using Financing to Grow Your Practice

For years people assumed that once a man or a woman finished their residency and became a licensed physician that their financial problems would be over. But, in today’s changing economic climate and the advent of HMOs in place of traditional insurance plans, running a medical practice is no longer a sure fire path on the road to riches. A medical practice needs to be run just like any other business. That means it needs to be constantly growing. A physician, as the CEO of his or her small business, needs to consistently find ways to maximize value and the return on his or her company investment.

Maintaining a successful medical practice is an expensive investment.

That’s where leasing can help. Maintaining a successful medical practice is an expensive investment. Medical equipment purchases contribute heavily to the cost of running any office. Yet, like any other commodity, medical equipment starts to lose value the day you purchase it. That’s why leasing makes sense. When you lease equipment, you are not committing a large outlay of capital on equipment that by its nature will one day be outdated and have to be replaced. When your lease expires in two, four or six years, you can start a new lease on the most up to date equipment available.

Leasing also allows you to have access to additional equipment that you would not be able to afford if you had to purchase it outright. Many doctors farm out some routine or exotic procedures to other medical professionals simply because they do not have the ability to perform those medically essential acts on site themselves. Yet, each time a physician refers a patient to another doctor for a procedure, he or she is losing out on a potential income stream. If you were able to have those machines on hand you could keep all of the fees for these procedures yourself without giving good business away to your colleagues.

By leasing you are increasing your bill-ables...

By leasing you are increasing your bill-ables with procedures that otherwise would have to be farmed out to medical support centers. This means that the machines themselves are bringing additional income into your practice. Therefore the additional equipment that low leasing rates make possible, actually cause your equipment to pay for the cost of the lease themselves. As your bill-ables increase through use of the new equipment, you are paying it back incrementally through your monthly payments.

There is an additional psychological advantage to leasing equipment. So much of what goes into whether or not your practice is successful is your reputation and perception in the community. People go to the doctor they trust. When people see that you have the latest equipment and perform all of your procedures on site your reputation in the community grows. That in turns means you get new business.

Leasing agencies are aggressively pursuing physicians for their business.

Better still, leasing agencies are aggressively pursuing physicians for their business. Because doctors have a very high record of honoring their financial obligations, you can get a lease rate that is far more attractive than those offered to other self employed professionals. Beyond that there are significant tax advantages that make leasing a better option than purchasing. Unlike taking out a bank loan a business lease will not affect your personal credit rating in any way.

This all adds up to one conclusion. Leasing is one of the best ways to grow your practice, maximize your income streams and solidify your reputation in your business community. Why not take 60 seconds to find out how we can craft a lease that will put the most up to date equipment into your office today.

Special Note: You should also know that GCR Capital offers many types of commercial financing programs; whether you’re considering buying new commercial properties, expanding an ongoing concern, or purchasing another business entity, GCR will get the deal done and make your expansion a reality.