There are many reasons why a practice might choose to purchase new medical equipment. Often, the decision is made in order to replace broken or obsolete equipment that was purchased some time ago. As such, for many practices that have spent far too much on these purchases, leasing medical equipment may be the best way to save time and money in both the short term and the long term—here are seven reasons why.
- Tax Benefits
Because the IRS considers lease payments as a tax-deductible expense, your practice would be able to deduct these payments from its taxable income. Purchased equipment, on the other hand, requires complex depreciation calculations in order to obtain tax benefits.
- Flexible Financing
Unlike purchasing equipment with a loan, leasing medical equipment generally does not require a down payment. This means you have the ability to essentially finance at 100% of its value. This could mean great things for maintaining cash reserves at a healthy level.
- Replacing Equipment
When a purchased piece of equipment needs to be replaced, your practice is usually stuck with it until a new one can be purchased—not to mention having the old one disposed of or hauled away. With leased medical equipment, all you need to do is to pick up the phone at the end of the term and lease a new one.
- Keeping Up With Technology
A big concern about purchasing medical equipment is not knowing how soon it may become obsolete. With a lease, your practice will often have flexible options for upgrading your equipment without having to purchase something new outright.
- Adding and Returning Equipment
It’s easy for a medical practice get bogged down with several purchased pieces of equipment that it no longer needs. With a lease you have the flexibility of adding new pieces of equipment when you need them and returning them when you don’t.
- Speedy Approval
Leasing medical equipment is generally less involved from an approval standpoint than purchasing. This means that if a new piece of equipment becomes available that could provide your practice with a competitive edge, leasing could be the fastest way to get that equipment into your office.
- Peace of Mind
By leasing medical equipment, you can be sure that the leasing company will be there for you whenever a problem arises. This provides your practice with a one-stop shop for all your medical equipment needs and is a sure-fire way to stay ahead of the rest.