medical equipment financing

Direct Capital Expands Medical Equipment Finance Division

July 22, 2009
by Barbara Kram, Editor

PORTSMOUTH, N.H. – Direct Capital, a leading nationwide provider of equipment leasing and financing, has taken several key steps to expand its Medical Equipment Finance Division.

The company has announced that it will allocate nearly $68 million in lending capacity to immediately provide more substantial financing programs to vendors that sell medical, dental, and veterinary equipment. The program allows financing from as low as $2,000 up to about $250,000, Paul Ringuette, Vice President of Sales for Direct Capital, told DOTmed News.

“We have been able to, in probably the worst market imaginable, not only renew but add a new lending facility. This is all ‘dry powder’–available money to go out to the market right now,” said Ringuette.

“With the significant expansion of our finance capacity over the last several months, we have identified several key verticals in which we want to substantially increase our investments. Our Medical Equipment Finance Division is one of our strongest performing and fastest growing vendor programs and we are excited to build on our success in this sector.”

Leasing and financing are great options right now, at a time when doctors want to hold on to cash. Hospitals and institutions use financing options from their operating budget lines instead of tapping capital equipment budgets. Many vendors and manufacturers that have been abandoned by other financial sources will tap these new funds for their health care provider clients. And Direct Capital Corporation will back used equipment transactions.

“We can finance new and refurbished. Most sources won’t. We have that ability and the ability to finance start-up medical practices,” Ringuette said. “It is very difficult to find a source if you have not been in business two or more years. We still have an appetite for those [clients] because they have historically performed well.”

“We continue to see more and more medical equipment vendors experiencing pain in securing reliable financing programs for their customers,” said Ringuette. “This is another void that we are well positioned to fill and we are excited to speak with any vendors in this space that wish to deliver a more comprehensive financing program.”

New Staff Support Effort

In addition, the company has hired three new vendor sales executives with significant medical equipment financing and leasing experience.

The company recently hired Regis Gallagher, Laura Anderson, and Erik Mohler to develop new finance programs specifically for health care equipment sellers. All three of these sales executives are well established in the medical equipment finance space and the equipment leasing industry in general. With these hires, the company now has sales offices in New York, California, Atlanta, Chicago, Detroit, Ohio, Iowa, and New Hampshire.

Direct Capital was recently named among the Equipment Leasing and Finance Top 100 companies, according to the Monitor (www.monitordaily.com), a leading industry trade publication. Monitor also ranked Direct Capital as the 6th largest independent provider of equipment financing in the United States.

Direct Capital, which provides a wide range of financial services, secured $100 million from Key National Finance and other conduits and banks in April. That came on the heels of the renewal of an additional $100 million line from DZ Bank. They have been one of the few, if not the only, specialty finance companies over the last 9 months to secure new capital.

To learn more about the benefits of Direct Capital’s Medical Equipment Finance Division, vendors should call (603) 373-1342.

About Direct Capital

Established in 1993, Direct Capital provides specialty finance solutions, including capital equipment leasing, commercial loans, and merchant cash advances. Direct Capital markets its services through direct relationships with businesses and through partnerships with vendors, dealers, and manufacturers of capital equipment. Superb execution on its exceptional and unique direct service delivery model is the cornerstone of Direct Capital’s success in an increasingly commoditized financial services industry. For information visit www.directcapital.com.

Medical equipment financing if it appreciates, buy it. If it depreciates, lease it.

Medical equipment financing is most effectively obtained through a lease arrangement. Traditional bank lines are perfect for running the day-to-day operations of a business but not for funding long-term equipment acquisitions.

Conserve Capital – Leasing conserves your working capital by requiring only a minimum initial outlay of cash – usually just the first and last payment. This frees your working capital for other profit generating activities or investments.

Save bank lines of credit – Leasing preserves your bank line of credit so that you are ready should a business opportunity or unexpected demand for cash occur.

Tax Benefits – Leasing allows you a dollar for dollar write off of the lease rental payments. With the new tax laws, the depreciation advantage of ownership is far less attractive when compared to leasing. Profitability is derived from the use of the equipment not the ownership.

100% Financing – Leasing provides 100% financing. Consulting, maintenance, freight, installation and training costs, may be included in the lease.

No obsolete equipment – Leasing affords you the opportunity to add-on, upgrade or replace obsolete equipment. Because flexibility is one of the greatest benefits of leasing, you never have to be stuck with old, out-of-date equipment.

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