This article is sponsored content brought to you by BOQ Specialist.
With the ever-increasing demands on veterinarians to run practices more efficiently, the productivity of both staff and equipment is a serious issue
To get the best results for your practice, you need the right equipment. But that comes at a price. The upfront cost of equipment is significant. Also, the way you pay for it may be different depending on your career stage.
A new surgery will require a different cash-flow structure to a well-established clinic looking to expand its treatment options. That, in turn, will have an effect on how you pay for that important equipment. Is a lease a better option than just buying it? Or will you eventually pay it off, only to find out you need to update it almost immediately? The average bank won’t be aware of these issues for veterinarians but BOQ Specialist understands.
What’s the best type of finance for me?
There are different ways to finance equipment, depending on the stage of your career and how you currently structure your finances. Options include:
Hire purchase loan: We purchase the assets you need and then hire them to you over an agreed contract period. You use the assets over the period of the contract, but we own them until the loan and interest have been repaid in full.
Benefits: Interest rates are often very competitive, repayments are fixed, and there are generally no ongoing fees. You may be able to claim the interest and depreciation as a tax deduction.
Chattel mortgage: Similar to a commercial hire purchase, but you own the assets for tax purposes from time of purchase.
Benefits: Same as hire purchase. The difference is the treatment of GST for tax purposes. Talk to your financial adviser or accountant about which one is best for your individual situation.
Lease: We purchase your assets, and your payments are split into a number of monthly lease payments and a residual. You pay rent on your assets and, at the end of the period, you can elect to purchase the goods for the residual amount.
Benefits: Generally, no ongoing fees and lease payments may be tax deductible.
Professional overdraft: An overdraft facility can be secured or unsecured, making interest-only repayments or paying down the overdraft with principal repayments.
Benefits: You only pay interest on what you use rather than the whole credit limit, and the interest may be tax deductible. There are generally no ongoing fees.
Rewarding yourself for a smart purchase
We are different to other finance providers because we combine flexibility with a deep understanding of each individual client’s career. That includes understanding your workload—and the need to balance your work and your life.
It’s why we also offer the option of putting the initial equipment purchase onto a BOQ Specialist credit card* as well as your equipment finance repayments. This allows our clients to earn a significant amount of airline reward points#.
Choosing the right equipment can be challenging but working out the best way to finance it doesn’t have to be. We provide tailored services to veterinarians and provide an ongoing process of assessing and modernising your equipment.
The credit provider is BOQ Specialist – a division of Bank of Queensland Limited ABN 32 009 656 740 AFSL and Australian Credit Licence no. 244616 (BOQ Specialist). Terms and conditions, fees and charges and lending and eligibility criteria apply. We reserve the right to cease offering these products at any time without notice. BOQ Specialist is not offering financial, tax or legal advice. You should obtain independent financial, tax and legal advice as appropriate. The information contained in this article (“Information”) is general in nature and has been provided in good faith, without taking into account your personal circumstances. While all reasonable care has been taken to ensure that the information is accurate and opinions fair and reasonable, no warranties in this regard are provided. We recommend that you obtain independent financial and tax advice before making any decisions.
* A 1.5% processing fee applies on the purchase price. Points are earned on eligible purchases only. Fixed term finance contract is to be approved prior to purchase. If you elect to make loan repayments on your BOQ Specialist credit card a 1.5% processing fee applies on the amount of each repayment. Repayments on overdrafts and lines of credit are not available to be made via BOQ Specialist credit card.
# Reward points are earned in accordance with the rewards program terms and conditions. For full credit card terms and conditions visit boqspecialist.com.au/credit-card-terms.