Medical Equipment: Rent or Buy?
Exploring the Great Divide
There are many decisions you make when you launch your practice. You're making sure you spend and save where it matters. When it comes to buying or renting, there are a few special considerations you should make.
You might change your mind depending on:
Your Specialty
The Number of Patients You Traffic
Your Brand
Your Growth Plan
Your Financial Situation
Let's dive in!
Buying
While more expensive up front, it has its benefits.
We both know this: medical equipment can be expensive!!!
Think of it like a house!
It's a more affordable long-term option.
It increases your assets overall.
You don't need to worry about negotiations on your lease.
BUT...
Upfront payments can be expensive, especially if you're a first-time business owner.
You'll have to account for depreciation.
When newer technology comes out, you're stuck with what you have.
Leasing
So then leasing is the natural option, right!?
It's great for some reasons like:
You can get decent financing options for leased equipment.
You can get cutting edge equipment in your office for a fraction of the price.
Something breaks? Just call the repairman at no cost to you!
You can get some tax benefits from leasing.
If we compared buying medical equipment to buying a house, we can compare leasing medical equipment to renting an apartment.
There are some issues there, too, like -
It's a long-term payment that isn't building you any equity.
If you ever have cashflow issues in the future, having assets might be helpful to you.
Some Final Thoughts
Buy or lease? Well, that's up to you.
But it IS a big decision, and it can affect the financial future of your practice.
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Disclaimer: This article contains information and opinions from Adam Kae & Associates, and the information and opinions should not necessarily be seen as the best possible solutions for your business. Please contact us at info@adamkae.com to help you find the best solutions for your business.