Medical Equipments – Should you Buy or Lease Them?Posted: June 27, 2012 by admin
The decision to buy or lease medical equipment can be influenced by many factors. A medical office’s budget is more than likely going to be the deciding factor. Financing and tax obligations follow closely behind. Another factor would be how long the machine will be effective. With new and innovative levels of technology constantly on the horizon, a piece of medical equipment may be obsolete within a year or two of its purchase.
Medical equipment leasing and loans includes several financial factors. Purchasing a piece of equipment with a loan means there will possibly be a sizable down payment, loan fees and an installation fee. Leasing on the other hand does away with the initial fees that are associated with most loans. There may be a one time delivery/set up fee, but after that the lease payments would be the only ones associated with the machine. Repairs would be made by the company at no additional fee because they are included in the terms of the lease agreement.
Tax incentives of leasing also can make it more favorable than purchasing when it comes to medical equipment. Payments that are made on a lease can be taken as part of operating expenses for the fiscal tax year, while purchasing the equipment leads to adding the cost of the machine to the assets of a company and figuring depreciation expenses.
New advancements in technology can also impact an office’s decision on purchasing a piece of medical equipment. Most pieces of equipment are highly technical. Much like personal computers, they may be obsolete within just a few months of purchase. If a company is worried about a piece of medical equipment becoming outdated, the best option is to lease it. By obtaining the equipment in this manner, they have the option to upgrade the equipment in one or two years, instead of getting stuck with an obscure piece of medical equipment for several years.
An office’s overall budget can mean the difference between getting medical equipment leasing and loans. Capital upfront may be tight in a newly opened office and leasing may be the only option if getting a loan is difficult. There are different levels of financing available, but having the option to lease may save an office both time and money.