It’s time to invest in new equipment for your medical practice. The high costs mean that you require financing. Which is the better choice for you: leasing medical equipment or obtaining a loan and buying it?
Leasing Medical Equipment Versus Buying
Leasing medical equipment is like a long-term rental. The equipment is not yours to keep. Financing your purchase with a loan means you own the equipment.
Advantages Of Leasing Medical Equipment
You rarely have to make down payments when leasing medical equipment. You can frequently upgrade to keep up with technology. Your maintenance costs are reduced because the leasing company handles them.
Disadvantages Of Leasing Medical Equipment
Leasing medical equipment can be more expensive in the long term as you always have a monthly payment. Leased equipment generally can’t be modified, and the leasing company chooses who repairs or services the equipment. Leased medical equipment doesn’t increase your equity.
Advantages Of Buying Medical Equipment
Your monthly payments stop as soon as the loan is repaid when you buy medical equipment. Equipment that you own is an asset and therefore increases your equity. You can customize the equipment to fit your practice, and repairs are under your control.
Disadvantages of Buying Medical Equipment
Most equipment loans require a down payment, which may be substantial. If the technology or your needs change, additional financing may be necessary to replace obsolete equipment with something newer. If the equipment stops working, you’re responsible for any repairs or replacement.
Which Should You Choose?
Having good equipment makes it easier to do your job, increases patient confidence, and potentially reduces errors. Leasing medical equipment is a good choice if your practice is growing or undergoing other changes. Buying medical equipment allows you to lower your long-term costs if the growth of your practice is stable and you know your requirements.
The financial professionals at BT84 Commercial Capital and Business Solutions are available to help you select the financing that best fits you. Contact us today for your free, no-obligation analysis and consultation.