There are significant financial benefits to traditional lease solutions
It’s that time of year again. The 2019 budget is due, and a stack of new-equipment requests sit on your desk. The new laptops you delivered to your physicians 18 months ago? The manufacturer just released a sleeker, more powerful version. Last year’s smartphones for the Marketing & Business Development teams? Compared to the latest model, they function at half the speed and connectivity. Ditto for the servers in the data center and the desktop PCs in Accounting and Finance.
No matter how many times you crunch the numbers, several departments will have to make it another year with outdated technology equipment. But do they really? The phrase “technology lifecycle” has been thrown around for years, but have you truly looked into how your team’s technology is utilized?
Welcome to the new reality of business technology.
For business leaders, the effort required to keep your organization’s digital tools running at peak performance can be staggering—and expensive. Few assets depreciate faster, or involve more legwork to track and maintain. Even responsibly disposing of outdated equipment creates headaches.
Optimize your technology lifecycle
Of course, leasing your healthcare equipment still retains the lifecycle management benefits that owning equipment lacks. It becomes much easier to transition out of obsolete equipment into what you need with a lease, having paid much less than the full purchase price. Enjoy passing the burden of property tax administration to your lessor. Upgrade your equipment in place, often extending the useful life and lowering the lease payment. Ultimately, benefit from the financial advantages while mitigating the many operational and financial risks of equipment ownership.
Leasing your healthcare technology has even more potential benefits:
• Allocate more capital to your business—instead of depreciating assets
• Increase free cash flow for uses other than repaying equipment loans
• Mitigate the costly repairs and patient inconvenience caused by outdated equipment
• Reduce the risk, workload, and expense of asset disposal
• Minimize the security risks inherent in outdated systems
Working with your financial institution—rather than leasing through separate, manufacturer-owned finance companies—can help deliver additional advantages. With your bank, a single master lease can support a variety of equipment, from hardware to software to enterprise systems, regardless of manufacturer or platform. This turnkey option helps you reduce the hassle of managing numerous relationships.
More importantly, working with a bank can help eliminate potential financial penalties at lease end and puts you in control of the vendors and technology that will help your business thrive.
Must-have services from your leasing provider
As you evaluate your options, look for financing providers who can help provide these time-saving services:
• Tracking solutions. Keeping tabs on your healthcare assets, deployed across locations, takes time and precision. Top lenders can reduce your workload and improve your accuracy with convenient electronic tools that centralize serial numbers, lease schedules, and asset disposition. Stakeholders in procurement and operations will appreciate easy access to information.
• Flexible returns. No matter how diligent your organization, a small portion of your leased assets will inevitably end up missing or damaged. You’ll have peace-of-mind and a stronger relationship when you work with a provider that clearly dictates return policies upfront. Ask about flexibility with timing, such as the ability to return or buy equipment off-schedule.
• Complete lifecycle services. Leasing enables you to replace aging hardware more frequently. However, faster turnarounds can turn the sunset and disposal process into a full-time job. Safeguarding company data and minimizing environmental impacts add to the workload. Fortunately, leading providers can share best practices and offer support services to streamline this labor-intensive process.
• Start-to-finish support. After approval, some capital-starved financers may sell your balance to another lender, in order to fund the lease. Look for an all-in-one resource who will maintain your balance, safeguard your business data, and support your goals at all stages of your lease. Working with your bank lets you bundle equipment leasing with other bank services, to obtain the best possible rates. It also ensures fair treatment at lease end, whether you return or purchase your equipment.
Using equipment leasing as a tool to subdue your budget and acquire the equipment you need will help provide significant benefits to both your doctors and your patients. Choosing the right financer will help ensure you get the flexibility you need without the surprises you want to avoid. Your financial institution has expertise that allows it to offer competitive lease rates while treating you fairly through the lifecycle management process.
The opinions expressed in this document are general in nature and not intended to provide specific advice or recommendations for any individual or association. Contact your banker, attorney, accountant or tax advisor with regard to your individual situation. The opinions of the author do not necessarily reflect those of Wells Fargo Equipment Finance or any other Wells Fargo entity.
WFEF U.S. trade name disclosure.
© 2018 Wells Fargo Bank, N.A. All rights reserved. All transactions are subject to credit approval. Some restrictions may apply. Wells Fargo Equipment Finance is the trade name for certain equipment leasing and finance businesses of Wells Fargo Bank, N.A. and its subsidiaries.