10 Biggest Advantages to Leasing Medical Equipment
If you own a medical practice, hospital, or other business that functions within the medical industry, then you already know that equipment upgrades and other necessary steps can oftentimes seem impossible simply due to cost. This is why medical professionals everywhere have begun to turn to leasing medical equipment rather than purchasing it. There are many, many benefits associated with this course of action, including:
Some expenditures, like these, are not seen as purchases by the IRS. Therefore, when tax season rolls around, you may be in for a great deal. Your medical practice may be able to deduct the lease payments from overall income, reducing the impact on your long-term finances.
Often, leased equipment doesn’t require a down payment. Therefore, rather than spending this big chunk of cash on a down payment elsewhere, you’re able to reinvest this cash in your business where it’s needed the most while still enjoying the much-needed equipment upgrade.
When you’re leasing medical equipment, the payments are treated as expenses. Therefore, when it comes to the income statement, you don’t need to claim depreciation or other inconvenient issues.
The best part about leasing equipment for a medical facility is the flexibility. If your company grows, it’s possible to add new equipment, replace older models with newer ones and to rent additional units, needs which are difficult to accommodate when owning.
Management of Assets
Because you’re not technically the owner of the equipment in question, you won’t be responsible for maintenance or repairs that might become necessary over the years. The leasing company handles this, as well as removing the equipment if you decide you don’t want to renew your lease.
It’s normal for technology in the medical world to become obsolete quickly. This makes owning machinery a bust. When you lease, however, you have the option of upgrading once your current lease is up.
Because applications are often approved within a few hours of submission, this is an excellent way to take advantage of sudden new opportunities like new equipment.
Your rent payments are usually set at a certain amount for an agreed-upon period of time, meaning you won’t be left guessing how much you’ll be owing from your cash flow each month.
At the end of your lease period, it’s possible to alter your terms. This includes payment amounts, the equipment you’re leasing and several other details.
Issues like large down payments, compensating balances and cash-flow projections cans cut into your cash flow and really slow down your daily operations. Leasing medical equipment makes this data unnecessary in most cases.
These are 10 benefits that your business can experience when you elect to lease medical equipment for your company.