Become a Vendor Financer for Medical Equipment
The health system is in need of expanding to support both a growing and ageing population. The Australian Institute of Health and Welfare (AIHW) recently released a report, Hospital Statistics 2009-10 at a glance, which showed that compared to the last financial year, there has been an increase in the number of admissions to public and private hospitals.
With the increasing need for health services, there is a great opportunity to supply and distribute medical equipment to hospitals and medical practices. Sometimes clients may not have the capital in hand, so adding the choice of vendor finance for the client is another way to expand your business.
These are some recommendations to think about if you are planning to offer vendor finance to your clients:
1. Understand the client’s needs –Learn about the financial needs of your client and what method of payment is most appropriate for them. Provide your client with different time structures for the repayments. Let your client know about any possible tax advantages.
2. Be mindful of your own financial situation – As a vendor you need to be aware of your cash flow and make sure that clients continue to make their payments in the designated time frames. You need to remember that payments from your clients will be in smaller instalments over longer periods of time. So do not forget to free up your own capital when needed.
3. Find the right lender – To gain a trusting relationship with your client it is important to collaborate with a respected and dependable lender. Research different lenders on the market and find a credible one that can deliver the services to your client in the most advantageous way.
Allowing your client the option of vendor finance on medical equipment will put your business a step ahead of those that just sell the equipment. Don’t just provide, but also finance medical equipment.
Discover how vendor finance can help you grow your medical equipment business – visit www.flexicommercial.com.au
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