Why Laser Equipment Leasing May Be The Best Option For Your Medical Practice
Thinking of starting your own medical practice? If so, then one of the most important things that will crop up in your business plan will be the procurement of laser equipment. You have multiple options in this regard — laser equipment leasing, financing or you can choose to buy the equipment from your own funds. And if you ask any medical practitioner you know as to what their choice of procurement is, you will come to realize that leasing is a very popular choice.
Why You Should Consider Leasing Your Laser Equipment
Leasing your laser equipment offers more benefits than financing it or purchasing it outright with your own capital. Some of them include -
- Conserve Your Capital: If you have very limited capital, then leasing is one of the best ways to obtain your desired equipment without depleting your capital. Even if you think about taking a loan, leasing offers a better option. When you take a loan, it will be shown as a debt in your balance sheet. This may affect your ability to raise money in the future. But with a lease, you are not faced with this problem. When you take a lease on any equipment, the lease is not shown as a liability. So when you approach a bank for a loan in the future, your balance sheet will look much better to them than with a loan.
- Keep Up With Technology: With a lease, you will be in a far better position to have the latest laser equipment in your office. If you purchase the equipment outright, then you will be compelled to keep using it until the time you feel the equipment has at least recouped its investment. In the meantime, if a more advanced equipment hits the market, you won’t be able to have it in your office. But with a lease, you don’t have to limit your options. If you like a new equipment, then you can lease out that equipment once your current lease runs out.
- Hedge Inflation: Leasing is also a good hedge against inflation. If you do not take measure to at last keep up with inflation, then your revenues and profits will have lesser buying power in the future. When you purchase a laser equipment outright, you will have to wait for many years for the equipment to repay its investment. As such, your practice is left vulnerable to the effects of inflation. But if choose to lease the equipment, then you will have protection against any devaluation of the currency since you have not paid for the equipment in lump sum.
- Tax Benefits: Leasing also offers you better tax benefits. When you lease the laser equipment, you can deduct the full cost of the equipment before paying taxes. But if you take a loan, then you can only depreciate the equipment over a lengthy period of time. As such, leasing enables you to quickly get the tax benefit, rather than having to wait many years to get the full benefit. For example, if you lease equipment worth $50,000 and your revenues for the year come to $60,000, then you have the right to deduct the $50,000 from $60,000 and will only have to pay tax on the remaining amount of $10,000.
- No Extra Collateral: You don’t need to submit any extra collateral in order to lease your equipment. The equipment itself will act as the collateral. However, this may not be the case with bank loans. If you approach to take a loan in order to procure your equipment, then the bank may ask you to submit an asset as collateral in order to secure the loan. When looking to procure laser equipment, financing may not be the right choice for you if you do not want to pledge any collateral.
Leasing is a preferred choice for many medical practitioners, especially those who are starting out. The benefit of not having to invest so much money upfront is a major point that makes practitioners to decide on the leasing option. And if you too are thinking of setting up your own medical practice, the leasing your equipment may be the best option for you.