This client is one of the largest state-owned government hospitals in Australia.
They had historically used government funding to procure new medical equipment. However, with increased pressure on capital budgets the client wanted to access an operating lease solution to supplement its existing capital budgets.
This client also required flexibility regarding the terms at the end of the lease.
Northquest was able to arrange funding for 100% of the equipment costs, structured as an operating lease and was able to negotiate the removal of progress payments, which was particularly important given the 12 month timeframe to build and deliver the equipment.
An initial five year rental term was provided with extension options, at the client’s discretion, to continue using the equipment.
This was the first time the client had financed such equipment other than with vendor / consumable finance structures and, as a result, the entire $1m fully installed equipment cost was financed at rates that were competitive with the existing capital funding lines from the state government.