Most people are unsure between buying and leasing medical equipment, wondering which is more suitable for their practice. However, you will have to consider several factors to make an informed choice. Discussed below are some of those factors.
Your Business
When you own a small business with few employees, financially, it is more practical to lease equipment than to buy. For instance, an X-ray machine can go from $75,000 to $95,000. This is a huge investment that may cripple your small practice. However, depending on the terms of your lease and your credit, you may find you are paying about $1,000 per month for a 5-year lease on a piece of good quality equipment. With such an amount, leasing becomes more manageable. You can also use a lease calculator to see how your monthly payments look like.
Your Credit
Another factor to consider is your credit history, as it will affect the amount you pay when you lease. If you have a credit score ranging from about 720, you are likely to get an interest rate of approximately 0%-3%. If you lease equipment worth $35,000 for five years, you will make a monthly payment of $600.83.
Technology
When it comes to buying or leasing medical equipment, consider how long it will take for the technology to be outdated. It will be unfortunate if you spend about $35,000 purchasing equipment only to find it becoming obsolete after a short while. Even if you have applied for equipment financing, servicing a loan for an item you will not use for long can affect your business financially. When you lease, you can replace old equipment with something modern every year.
Cost of Maintenance
The leasing company is in charge of maintaining the medical equipment. You are not allowed to modify it or fix anything. This, therefore, restricts your freedom about what you can do with the equipment. At times, it may be okay if you do not have to modify the equipment to use. If you have to change it, you will need to buy it. Once you have bought it, you can choose the person you want for maintenance.
In the end, leasing medical equipment depends on what you can afford and how long the technology will remain helpful. However, if you can afford it, you can go for it as well. With the above considerations, you can make an informed choice about buying or leasing medical equipment. You can also reach out to financial institutions for funding to help you acquire the equipment.