Medical Equipment Finance
Do you understand how the current Government Instant Tax Write-Off works?
Under the instant asset write-off, eligible businesses can claim an immediate deduction for the business portion of the cost of an asset in the year the asset is first used, or installed ready for use.
Instant asset write-off can be used for:
- Multiple assets as long as the cost of each individual asset is less than the relevant threshold.
- New and second hand assets.
It cannot be used for assets that are excluded from the simplified depreciation rules. (see your Accountant for more details)
From 12 March 202 until December 2020, the instant asset write-off:
Threshold amount for each asset is $150,000 (up from $30,000) and eligibility has been expanded to cover businesses with an aggregated turnover of less than $500 Million. (up from $50 Million)
The instant asset write-off eligibility criteria and threshold have changed over time.
You need to check your business's eligibility and apply the correct threshold amount. This depends on when the asset was purchased, first used or installed ready for use.
Speak with our of our Lending Specialists about what funding options might be open to you and your business today on
How can our Equipment Lending Specialists help you with equipment finance?
We offer a range of lending options for investing in new equipment for your medical, dental or veterinary practice. We have helped many practice owners find the best finance solution for their individual business scenario.
The equipment you choose for your practice is one of the most crucial decisions you will make. Our experience and strong lending partnerships allow you to get access to wide range of loan products and in turn make better use of your cash flow.
Equipment purchases for your practice often require a large initial outlay, affecting both business cash flow and debt servicing levels.
Choosing the right assets and equipment supplier is critical, it's equally important that you are guided towards the right kind of financing to ensure that your business can grow long into the future using smart debt strategies along the way.
When it comes to deciding whether a loan, lease, chattel mortgage or commercial hire-purchase is best, we work closely with your financial advisers and accountants to tailor an arrangement which fits with your tax structure.
Once you've rented or purchased premises for your practice you will need to fit it out with fixtures and fittings to make it look professional.
Fit-outs are a large investment in your practice and it's important that you choose the right kind of financing. A flexible escrow facility can cover everything from dry walling right down to carpets, windows, paint and plumbing.
We can help with structured payments that help you make the right payments to suppliers under your instruction and you pay the total amount back in one simple repayment structure.
Some Equipment Finance Features
Select from a range of equipment finance options including lease, hire purchase or chattel mortgage.
Flexible terms and repayment options
Consolidate the finance for all your practice assets into one finance agreement
Equipment finance options explained
There are a number of popular product options when it comes to financing medical equipment: lease, chattel mortgage or hire purchase to name just a few. Each has different tax benefits. Our finance specialists can talk you through these option in more detail and ensure you end up with the most effective choice for your practice.
What is a lease:
This is where the chosen financier owns the equipment while your business rents it over a period of time and pay a residual amount at the end of the lease term.
What is a chattel mortgage:
This is where you own the equipment and the Lender provides the finance to you for the purchase, and the equipment is used as security for the loan.
What is hire asset purchase (asset purchase):
This is where the Lender owns the equipment and your business rents it over a period of time. You have the option to purchase the equipment at any time during the term or on expiry of the contract.
Choosing the right loan term for your equipment finance:
It is important to finance your equipment over a term that matches the likely lifespan of your equipment. It would be easy to make the mistake of paying for equipment years after it has passed its used-by date by choosing the longest term on offer.
Choosing the right residual:
A residual, also referred to as a balloon, is the final payment due at the end of a loan agreement. The amount is agreed to by you at the beginning of the loan and is included in your agreement and repayment schedule. The residual should match the likely value of your equipment at the end of its finance period. Having a well structured residual in place can help you with your cashflow and reduce your repayment commitments.
Do you have some questions?
Call our Medical Equipment Loan Expert, Jason Desmond.
Other Commercial Finance Options We Handle