Rising financiel pressure in health care, shorter ycles of investment demand new ways in financing your practice.

It really pays off to look for new ways like "pay as you earn" or leasing.

Ownership or possession?

Typically when you buy an economic good the property changes with its payment to the buyer. For operating leaseing or rent this is not the case – here one only posseses and the property remains with the hirer/lessor. Thinking of Return-on-Investment (RoI) the ownership is not relevant. It is only a matter of whether the asset justifies its use of resources: The yield is more important than ownership.

Many medical device manufacturers earned in 2000 already 50% of their revenue from devices that were younger than 2 years. At the same time, the legal framework for lending tightened.

To demonstrate how much potential in new ways of financing might be, we have compiled the most common financing models:

*Credit buying/bank loan

With the entry into force of Basel II, there is a decreasing willingness of banks to grant loans: The quintessence of this package is simple. Good risks get better interest rates than less good risks. This can go so far that the "less good" risks do not receive more funding. The determination of the a borrowers risk is determined by the so-called rating.

Another point that the credit purchase of an asset less attractive, is the removal of the declining balance on 1.1.2008. (in Germany) This is no depreciation on such accelerated return of funds possible. In the case of linear depreciation, the investment is made today, the consideration in the calculation of income only in the next 4 to 14 years. A period that is included in the rule for a meaningful planning far too long.

*OperateLeasing/Miete

Basically resembles operating lease contract a normal lease. The classic case for operating leases models are corporate car leasing contracts. Of advantage to the lessee / tenant is that all emergency operational costs, as the lessor / landlord, the asset value. A residual risk of the lessee / tenant is usually also not. The disadvantage is that the lessee / tenant is often associated with the economic risks associated bears. He also repairs and service needs.

*Pay-as-you-earn model

The pay-as-you-earn model is the latest alternative. It is a sophisticated usage agreement between the user and manufacturer. The practice / clinic is benefiting from cost transparency and budget certainty. In this model, all at the same time, operating costs, as the lessor / landlord, the asset value. What is new is that he risks all to pay for the asset, service and repairs are also included, as well as staff training. The contract is the one depending on the anticipated use and desired financial freedom - it will be individually tailored.

Financing the purchase, lease and pay-as-you-earn in comparison:

	credit	lease	pay-as-you-earn
accounting
immediate tax deductibility of the rates as an operating expense
preservation of existing bank loans
preservationof liqidity
Positive influence on the clinical rating - lowering the interest rate and thus the rest of borrowing costs.
Calculable total budget and safety
Costs even in practice vacation, illness, etc.
Transparency of costs, including all charges
Cost case according to use
Cost depends on turnover (pay-as-you-earn principle)
Carries shorter innovation cycles
Flexibility in the maturity
Training