Can Leasing Medical Equipment Cut Down on Expenses?
Given the option, would you lease or buy an expensive item? Many people would opt to buy, assuming they could afford it, so that they would have full ownership of the purchase. What if the item you’re buying would need to be replaced every two years? Suddenly the prospect of ownership doesn’t seem quite as appealing. This is why so many practices are leasing medical equipment. Medical professionals need to have current instruments, yet the machinery used in the field is constantly being upgraded. By leasing instead of buying and exchanging instead of reselling, your business can cut back on big purchases and even save money in the long run.
Buying vs. Leasing
You can’t very well purchase something for a year. Once you buy it, you own it. You can certainly try to resell the product later, but don’t expect to get anything close to what you paid for it. This is why leasing medical equipment can be such a money saver. You can acquire an expensive device and not be stuck with it when a newer model becomes available eight months later. In most cases, you’ll be able to upgrade to the latest machine without any sort of hassle. How happy will you be to not have purchased the same thing twice within a year?
The option to finance equipment also keeps depreciation off your books while still providing tax benefits. Leasing is usually considered an overhead expense and you can write it off as such, but without having to figure out the deteriorating value of the machinery. You’ll have a monthly tax deduction without the baggage of an aging asset.
Another benefit of leasing medical equipment is the opportunity to use instruments your business otherwise couldn’t afford. Say there’s a machine out there that can replace several pieces of equipment you’re currently using. It might be too expensive to buy, but with reasonable lease terms you can acquire that instrument and sell the others that you no longer need. The sale of the old equipment might even cover the cost of the lease. If financing enables you to employ recent technology and streamline your practice, you can save and generate money in a whole new way.
Leasing medical equipment is still an expense, but compared to what it costs to buy and replace machinery, it’s an extremely minor one. Factor in the tax breaks and the benefit of having the best equipment, and you’re looking at some significantly lowered costs.