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As the world makes consistent strides in medical technology, your practice needs to keep up with developments. Working continually with outmoded equipment can hamper productivity and lead to mistakes that may affect your practice’s reputation. Since advancements in medical equipment and technology is in a continual state of flux, investing in new equipment every quarter is imprudent.
If you’re not comfortable with unreservedly purchasing new apparatus, medical equipment loans, and medical equipment leasing might help you ease the budget restrictions. Let’s weigh the positives and negatives of buying and leasing medical equipment to understand which option is best-suited to your needs.
Pros and cons of medical equipment leasing
Leasing is synonymous to a renting, albeit with a longer tenure. Equipment leasing involves making monthly payments to a financing company in exchange for utilizing medical equipment, for instance, an x-ray machine, or MRI. At the end of the lease period, you could return the equipment or buy it.
There are many benefits associated with medical equipment leasing, first and foremost of which is a low down payment cost, which essentially allows your practice to rent high-end equipment without the fear of emptying your funds. Moreover, equipment leasing brings with it the possibility of frequently upgrading medical equipment to their latest rendition, which enables you to keep pace with the technological developments.
However, equipment leasing can set you back for more in the long term, even though the initial payment is low. Also, the leased equipment doesn’t increase the value of your practice, as it’s owned by the financing company, not you.
Additional Read: Equiment Financing VS Equipment Leasing – Which One is More Suitable for Your Business?
Pros and cons of buying medical equipment
Buying equipment usually involves paying the entire cost of medical equipment or opting for a medical equipment loan. Such equipment loans are usually self-secured, meaning you won’t have to put up any collateral from your personal or business assets.
Most importantly, buying medical equipment can significantly reduce long-term costs, since the equipment loans come with an end date. Also, the medical equipment is yours to sell, as you’re its rightful owner. Buying medical equipment also allows you to make repairs and modifications as you see fit, as a third party company doesn’t own it.
But there are certain drawbacks attached to buying equipment. For starters, the upfront cost is higher when compared to leasing, making a sizable dent in your capital. Also, buying equipment doesn’t allow frequent upgrades, since selling the equipment at the end of the loan is a cumbersome process.
Additional Read: What Vital Role does Equipment Financing Play in Reviving Business in Post Pandemic Period?
Leasing vs buying: the final verdict
Choosing between equipment financing methods boils down to your needs. If your practice requires frequent equipment upgrades, medical equipment leasing might make more sense. On the other hand, if your practice knows its long-term requirements, buying might be a better investment decision.
Thankfully, equipment finance has become much accessible. For, speedy and competitive equipment loans, get in touch with Tata Capital today and enjoy highly customized loans and flexible tenures.