Start an EMS Equipment Financing Company

1. 1

   Secure a lending capital base

   Unlike a broker, a lessor funds the equipment, so you need equity capital, a credit facility, or investor backing to build a lease book. This capital and its cost define your economics. Line up the funding before you originate, because you cannot lease what you cannot fund.

2. 2

   Build EMS equipment underwriting

   Learn the costs, useful lives, and residual values of stretchers, powered cots, monitors, defibrillators, and diagnostics, plus the credit profiles of EMS agencies, nonprofits, and small operators. Sound underwriting of both the asset and the borrower controls losses. This credit discipline is the core of a lending business.

3. 3

   Package bundled lease products

   Offer packages that bundle the equipment an agency outfits a unit with into one lease, simplifying the operator's purchase. The report specifically highlights this bundling. A clean bundled product is easier to sell than piecemeal financing.

4. 4

   Originate through dealers and direct

   Deal flow comes from equipment manufacturers and dealers wanting a finance partner and from operators directly. Vendor-finance relationships with equipment makers can be a strong origination channel. Steady origination keeps capital deployed and earning.

5. 5

   Manage the portfolio and residuals

   Service the leases, manage collections and defaults, and handle end-of-lease equipment remarketing to recover residual value. Portfolio management is where a lending business is made or lost. Disciplined servicing protects the spread you underwrote for.

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