Flexible financing helps introduce groundbreaking new technology
How can you balance the need to be the first in your market to introduce an exciting new imaging technology … with an equally compelling need to be protected from equipment obsolescence?
Diagnostic Imaging Center has five locations, performing 40,000 mammography exams per year, throughout metropolitan Kansas City. The for-profit center, largest in its marketplace, faced both a major opportunity and a significant concern this summer, when GE introduced its full-field digital mammography technology, according to Michael Wright, Chief Financial Officer at Diagnostic Imaging Center
“We were talking about a million dollars; and to make that kind of an investment, we needed to be able to prove to ourselves that GE’s technology would, as we believe, not only set the gold standard for mammography … but also that the market demand for full field digital mammography would support such an investment,” Wright said. “And because the technology was so new, our radiologists wanted future upgrades to maintain the state of the art status, despite rapid technological change. We also desired an exit strategy, in the form of a lease that could be cancelled after two years.”
“Try taking those requirements to a bank!” Wright said. “Whether it’s a large national bank or local lenders, they’re clueless about what such a product means to an operation like ours, what the equipment’s fair market value might be, or what competitive products are like. To them, a lease is a lease – and it’s not negotiable.”
Fortunately, GE does understand the diagnostic imaging marketplace. As a result, GE Healthcare Financial Services worked out a unique and flexible lease agreement with Diagnostic Imaging Center.
“They structured a five-year operating lease, which included a cancellation option after 24 months,” Wright explained. “This provided us with a low monthly payment, enabling us to meet our cashflow requirements, and the opportunity to cancel the lease after 24 months if the technology has dramatically changed. There was also an early buyout option. Furthermore, the lease rate was extremely competitive.
"GE Healthcare Financial Services has been our primary source of capital for years now. It’s been to our mutual advantages to form a strong business relationship. They’ve been exceptionally accommodating in finding creative ways to meet our financing needs.”
These are the products GEHFS has which can help you
Maxiservice®
Integrated
equipment and service with your choice
of financing structures, such as operating
leases, sale-leasebacks, capital leases,
and much more
Leaseline®
Affordable,
flexible true leases that make it easy
to acquire the GE healthcare equipment
you need
Masterline™
Competitive true leases for all your non-GE equipment
Term loans
Individually tailored to your financial needs
Structured finance
Creative solutions such as sale/leasebacks, debt refinancing, cash flow loans for start-ups, and acquisition financing
Additional offerings
Easy access to GE Capital's many other financing capabilities (working capital lines, specialty real estate, etc.)
Find out how easy it is to put these and other proven financing solutions to work for you by calling one of our professionals today at: 1 800-643-6439
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How can you balance the need to be the first in your market to introduce an exciting new imaging technology … with an equally compelling need to be protected from equipment obsolescence?