Many businesses grapple with the decision of whether to lease or buy equipment, and medical care providers are no exception. In this post, you’ll learn about what leasing medical equipment offers, making it easier to decide if leasing or buying is the right choice for your business.
Leasing medical equipment can be a good choice in several scenarios. One is if the equipment is likely to have a short useful life. That’s because if you buy equipment but it becomes obsolete before you’re done paying it off, you’ll be stuck with dead, expensive weight. A related consideration is whether the equipment will depreciate rapidly, in which case leasing will again be the better choice.
By leasing medical equipment, practices can also keep their payments predictable. That’s especially true if the leasing agreement includes provisions for maintenance, training, and other one-time costs that might otherwise cause unexpected financial hiccups.
Additionally, leasing medical equipment can often serve as a way to keep the medical practice’s cash free for other expenditures. Typically, leasing won’t require a hefty down payment, like buying usually does. That said, there are some situations in which buying may make sense.
Buying medical equipment can be a good choice if the equipment is likely to have a very long usable life. For example, if you access financing to buy equipment, and the equipment will remain useful long after you’re done making payments on it, then it can be a great financial move.
Additionally, buying equipment can let your company choose what to do with it. That means if you want to modify the equipment or even sell it down the road, you’ll likely be less restricted in your ability to do so.
Interested in funding options for your medical business? Growth Capital Team would love to chat with you, so please reach out!