Compare cryotherapy financing by the obligation you accept

Direct answer

The lowest monthly payment is rarely the cheapest deal. Before comparing offers, write down the cash price, deposit, number of payments, fees, taxes, insurance, maintenance duties, who owns the equipment at the end and what it costs to get out early.

Four structures to distinguish

• Cash purchase - the buyer pays the equipment and retains ownership, subject to the sales contract.
• Loan - a lender finances a purchase and the borrower normally owns the asset subject to the lien.
• Lease - the financing party owns the equipment during the term and the end-of-term option varies.
• Rental - access may be more flexible, but service, usage limits, return condition and cancellation rules control the real value.

The labels vary by contract and jurisdiction, so classify an offer by its actual terms, not by what it's called.

Reproduce the payment schedule before comparing offers

An illustration: an amortizing loan of USD 80,000 over 36 monthly payments at a fixed 4% nominal annual rate, compounded monthly, comes to about USD 2,361.92 a month and USD 85,029.08 in total. At 12%, the figures are about USD 2,657.14 and USD 95,657.21. Neither includes deposits, fees, taxes, insurance or residual payments, and neither is a financing offer.

The formula is payment = principal x monthly_rate / (1 - (1 + monthly_rate)^(-number_of_payments)); at a zero rate, divide principal by the number of payments. Lease factors, advance payments, balloons and irregular schedules need the contract's actual cash flows instead, so ask the lender to show how it reaches its own total.

Keep the equipment cash price, the financed principal, total scheduled payments and the total installed cash requirement on separate rows.

Reconcile deposits with the balance schedule

Say the equipment costs 80,000 in cash and you pay a 20,000 deposit. The later equipment balance is 60,000. Entering both the 20,000 deposit and an 80,000 balance counts the deposit twice. Tax, freight and other separately priced charges get their own lines.

The same logic applies to financing. For cash flow, enter the actual deposit, scheduled installments, fees and final payment - not the full financed price as an upfront expense as well. For an ownership comparison, count the cash price once and show financing charges separately. The equipment principal and its loan installments are two views of one purchase, not two purchases.

Map who pays the supplier, when loan proceeds arrive and which cash actually leaves the business. Then transfer the real schedule to the business cash worksheet to test it through ramp-up and downtime, keeping exact payment dates outside its monthly totals.

Questions that prevent false comparisons

Ask whether freight, installation, training and tax are included in the financed amount, and whether the advertised payment assumes top-tier credit. Find out about personal guarantees, blanket liens and required insurance. Get the payment schedule and every end-of-term option in writing, and have an accountant and a qualified legal adviser review the tax and contract treatment.

Match financing to operating risk

The payment has to be affordable during ramp-up, slow months and downtime, not just in the best sales case. Keep repair reserves and consumables in view. If a supplier bundles financing with a service package, ask for the two priced separately and mark anything already included so it isn't charged twice.

Current evidence note

The model set includes manufacturer financing examples: Artica's monthly starting figures, a CryoBuilt Everest starting payment and CRYONiQ's buy, rent or lease language for selected territories. These are marketing terms meant to start a conversation, not comparable offers. Don't put a monthly figure into a calculator until the full obligation is documented.