When your healthcare facility or practice needs medical equipment, you need to decide whether to buy or lease it. Each option has its benefits and drawbacks, requiring critical thought about several factors before making a choice. Leasing offers flexibility and cost-effectiveness while purchasing medical equipment gives long-term ownership and control over the device. In order to help you make the right choice for your company, we'll examine the differences between purchasing and leasing medical equipment, and go over some of the pros and cons. We'll first give you a brief run down and then dive deeper into when and why you should lease or buy!
Benefits of Leasing Medical Equipment
- Lower Upfront Costs
- Flexibility
- Tax Benefits
Cons of Medical Equipment Leasing
- Long-term costs
- Less freedom to modify or repair equipment
- No added value to your practice over time
Benefits of Buying Medical Equipment
- Long-Term Savings
- Control
- No Contracts
- Potential Asset
Cons of Buying Medical Equipment
- Difficult to replace
- Upkeep is your obligation
- High upfront cost
When and Why you Should Lease?
There is no one-size-fits-all answer to these questions, each business owner has its own situations and circumstances that needs to be taken into account. On the flip side, there are circumstances where leasing should be your best and only option. Conserving cash flow is a great reason to lease as well and the flexibility to upgrade equipment frequently. Staying up-to-date with top of the line equipment can give your business the competitive edge in an ever-so changing industry. Leases can also be structured to meet your specific needs, such as negotiating a term that matches the expected lifespan of the equipment.
When and Why you Should Buy?
Buying medical equipment can be a significant investment for any business including yours. However, in certain situations, that may be the best option out on the table. As you don't have to worry about interest payments or lease fees over time, you have complete control over how the equipment is maintained and upgraded. Buying equipment is also considered as buying an asset, owning your equipment increases your business' overall evaluation and net worth making it more attractive to potential buyers and investors.
Capital Infusion
Navigating the equipment financing could be stressful and time consuming but that's why Capital Infusion can help you make the right decision for your business. Our finance advisors are specialized in finding the right deal for you, so you can put your focus where it really matters. In addition, stay up to date with our blog so you can stay up-to-date on the latest trends and industry specific news. Visit our website to learn more!