As medical technology keeps evolving, having the right, and sometimes the most up to date equipment is important to the life of any medical facility. Delivering better healthcare to more people at a lower cost is the recipe for success.
The Medical Imaging market is one of the leading segments of medical technology, because medical imaging equipment is not something you want, but something you need. You need it to be able to provide the right service, you need it to stay ahead of the competition, and you need it for the survival of your business.
Should you buy or lease medical imaging equipment?
It depends on your situation. And since there is no one answer that fits all here is a rundown of the advantages and disadvantages of buys vs. leasing medical imaging equipment:
• Less initial expense is required. Leasing allows you to acquire assets with minimal initial expenditure.
• Tax Benefits. Lease payments can usually be deducted as business expense, reducing the net cost of the lease.
• Flexible terms – Unlike bank loans, leases are usually easier to obtain and have flexible terms. This is a huge benefit when you have bad credit, or need to negotiate and longer payment plan.
• Easier Upgrade – If you use a lease to obtain equipment that will become obsolete in a short period of time, a lease passes the burden on the lessor. You are sometimes free to lease new and more up to date equipment when the lease ends.
• The equipment is not yours – You don’t increase the value of your company with the new medical imaging equipment.
• Commitment to pay until the end of the lease – You are obligated to make payments until the end of the lease, even if you stopped using the equipment. Some leases have the option to cancel the lease if your business changed direction.
Buying Equipment Advantages:
• You own it – and can do with it whatever you wish; make specific changes to the equipment for example.
• Tax Incentives – The Internal Revenue Code allows you to fully deduct the cost of the new medical imaging purchase.
• Depreciation – You can receive tax benefits for almost any business equipment through depreciation deductions.
• Higher initial cost – For some, the cost of medical imaging equipment is too high. Even when planning to loan the money and make payments, most financial institutions require 20% down payment.
• Less cash flow – Borrowing might tie up lines of credit and lenders may put restrictions on your future financial operations.
• Owning obsolete equipment – When purchasing a high end equipment, the owner runs the risk of it becoming obsolete and he might need to invest some more for new equipment. If specifications were made to the equipment, it might be very difficult to resale.