Do you need to finance (or lease) X-ray Equipment?
Your first question may be...
"What are the payments?"
Here are some answers:
Imaging Equipment Financing and Leasing Rates
We're talking about leasing here, not renting.
With a lease, you make payments for a set period of time, usually 2-5 years, and at the end you have several options depending on how the deal is structured.
What your monthly payments might be depends on a lot of factors, namely:
- The cost of the machine
- How long you are planning to pay it off for
- How long you've been in business
- Your personal credit profile
- Your tax rate
So, let's talk about each of these things and give you a better picture on what it might cost to lease an X-ray machine.
How Much Does Imaging Equipment Cost?
That depends on a lot of factors, such as whether it's a digital or analog machine, whether it's just a simple machine or a big MRI machine, and contains much more detail that we can go through here.
In general, the range is $7,000 for the simplest, oldest pieces of equipment, all the way up to the hundreds of thousands for fancier machines.
How does Length of a Lease Affect Payments for an X-Ray?
Let's use the example of a borrower with OK credit (about a 650 credit score) and some time in business (more than 2 years) leasing a $50,000 X-ray machine. Usually you'd be looking at lease terms of 2-5 years, so let's take a look at payments over that time span.
A borrower with good credit (675+) would pay less - and will often have the opportunity to have much both lower payments and tax benefits if the lease is structured properly.
Are X-Ray Finance Rates Higher for a New Practice?
A new practice is riskier than an established one.
So... rates will generally be higher if you're new.
How much more depends on your personal credit. If you are new in business and don't have at least a 625 credit score, it can sometimes be difficult, though not impossible to find financing.
If you have decent credit, many finance companies will let you lease equipment, but expect costs to rise commensurate with the risks of lending to a new business.
How Does Credit Affect X-Ray Machine Payments?
Your personal matters when you finance.
The lender has to factor this:
If they made loans to 1,000 clones of you, how many of those clones would make all of their payments?
They then mark the financing up enough to cover the anticipated default rate.
Let's look at a $35,000 X-Ray machine, and assume an established business is buying it, leasing the machine over a period of 5 years - with $1 buyout at the end.
(note: this is a huge oversimplification - for well established practices with generous revenues payments can potentially be much lower - and if you've really got bad credit, payments could be higher)
How Does Tax Change Costs of Leasing an X-Ray?
A unique factor of leases is that the entire payment is counted as an operating expense when you do your taxes.
This makes them cheaper. If you live in a high-tax state, such as California or New York, and have a high income, this makes them a lot cheaper.
Let's use that example of the $35,000 X-Ray again, assuming the borrower with an $853 payment over 5 years, and look at what the after-tax costs would be at different rates. Since we have to pay 10% at the end if we want to keep the machine, really we're only financing $31,500. Since 60 payments at $853 is $51,880, the pre-tax finance cost is $19,680.
If you'd like a customized quote relative to your situation, just give us a call at (866) 631-9996.