Should your medical practice buy or lease the medical equipment you need to serve your patients and stay ahead of the competition?
Both leasing and buying offer benefits and drawbacks to a new or growing practice.
Buying your own medical equipment is the more affordable choice over the long-term in the same way that buying a house is more cost-effective than renting.
Purchasing equipment can increase the overall value of your practice as a business.
Buying equipment also prevents the need for ongoing negotiations with a leasing agency.
However, purchasing equipment means coming up with a sizable upfront payment. It can also result in equipment depreciation and obsolescence as equipment technology rapidly changes.
Leasing medical equipment has its benefits as well.
There is often little to no upfront cost associated with leasing, as many companies offer 100% financing for medical equipment.
Leasing protects against obsolescence as outdated equipment can be exchanged for the latest technology.
Leasing companies will often shoulder the responsibility of equipment repairs, and leasing provides tax benefits that owning does not.
However, leasing is the more expensive option long-term, and monthly payments may become a burden if and when your practice faces cash flow problems.
Be sure to consult your financial advisor and work with a leasing company to determine which option is right for your medical practice.
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