Purchase, Lease or Rent
Finance Your Purchase with a 24-Month Equipment Lease
Who can apply?
If you are a registered health care professional, private health care clinic or other type of health care organization you can lease your purchases valued from $2,000 up to $50,000.
How much are payments?
Payments are spread evenly over 24 months. Monthly payments are the equipment purchase value ÷ 24 plus applicable taxes, i.e. HST or GST.
How are payments made?
Payments are by post-dated cheques, supplied annually, in advance.
There is only a $50.00 setup fee, and no annual assessment or other administrative fees when you lease from Biomation.
You can lease from Biomation to finance equipment purchases. Credit approval is normally within 48 hours. You can pay off the lease in full at any time. An initial deposit of 10% will firm-up your order and reduce the monthly fees.
What's the security?
The equipment you lease is taken as security. The health care organization and the business owner are named in the lease and are jointly responsible for the lease. You must keep the equipment in a secure location and covered by your insurance in case of loss or damage.
Is interest included?
The amount of interest is reflected in the end of term residual value of 15% which represents the full amount of the interest over the two year term of the lease.
Leasing makes sense
There usually are tax advantages because the full amount of the monthly payments can be expensed against income, instead of using depreciation accounts.
Equipment with a value of $10,000
Down Payment $1,000.00 + $50.00 setup fee + 13% HST = $1,186.50
Payments are $9,000 ÷ 24 = $375.00
= $423.75 per month for 24 months.
Final payment is $9,000 X 15% = $1,350.00
= $1,525.50 residual value.
You should discuss financing options with your accountant or financial advisor to determine whether a bank loan, equipment lease, rent-to-own or outright purchase is best suited to your needs. Use your working capital and bank line of credit for other business needs. There is better cash flow because monthly payments are covered by revenue.
End of Term Options:
Several options are av ailable at the end of month 24 of the lease
1. Purchase the equipment at the residual value = 15% of the equipment purchase price.
2. Purchase the equipment by making four additional monthly payments.
3. Choose upgraded equipment and negotiate a new lease.
4. Return the equipment.
Call for a lease application form.
Call for details. 1-888-667-2324