One decision often facing medical practice owners is whether to buy or lease equipment. Here are a few points to consider before making your decision.
The clear advantage of purchasing your office equipment is that you become the owner of that machine.This makes the most sense for equipment that you know will last a considerable amount of time and doesn’t run the risk of becoming obsolete in the near future. Use your past experience to evaluate how long certain equipment should last.
If you are purchasing a piece of equipment that you don’t know much about, ask around to see what other physicians using the same or similar equipment have experienced. As you can imagine, you tend to get a better idea of the quality of a machine from someone that is actually using the device everyday as opposed to someone trying to sell it.
Depending on your practice’s financial situation, obtaining enough cash to purchase an expensive piece of equipment may be difficult.
Even if you are considering borrowing the money, it can still be tough to come up with enough money for the down payment. I know this is the case with many of the small and mid-sized medical practices that we work with.
This is where working with your accountant or business consultant can help to determine a plan. Maybe you can afford it now or possibly save up over a certain amount of time to purchase it later. However, if it just doesn’t make financial sense to purchase the machine, leasing could be a viable option.
There is usually very little initial cash investment, which can be valuable to practices that either lack cash or prefer to reinvest their cash into other areas of the practice.