4 Money Saving Advantages Of Leasing Medical Equipment
Most medical businesses are not as leveraged as they should be. This is an issue ranging from large hospitals to independent diagnostic centers and small clinics. In any business, and specifically in a business sector with as much growth potential as currently exists in the healthcare industry, it’s important to spend money to make money.
That’s easier said than done in an economic downturn. However, with things looking up, there are relatively low-risk measures you can take to increase your operating potential. One of these is leasing medical equipment. Here are some of the benefits your organization can receive from this equipment access method.
Leases don’t require any type of down payment. That means that, especially in lease to own scenarios, you are in a 100% financed ownership plan. Leases don’t have the same extensive negotiation and approval processes as loans, and the financing is packaged in the monthly rate. You can even use other financial tools, such as factoring of receivables, to pay for an equipment lease should you find yourself in a reduced cash flow situation.
One of the common arguments for buying equipment rather than leasing it is that you could reap significant tax benefits. However, it’s not as though those benefits disappear when you lease equipment. Medical leasing companies who own equipment get those benefits, and the smart organizations pass on the savings to their lessees. This allows leasing companies to remain competitive and gives you guaranteed access to the benefits of these tax awards.
Other Tax Advantages
Certain leases, such as medical equipment, qualify for tax deduction. When you look into leasing medical equipment, think about whether or not you can include the payments into your overhead expense. If you can, that’s a tax deduction. You can remove those payments from your income and reduce the direct costs of the equipment.
One of the most attractive elements of leasing in the medical profession is that the payments can be immediately written off. In a business that often has prolonged float on receivables, having financial benefits that resolve immediately is a rare pleasure. There’s no extended depreciation to write off when you lease; it’s all right there every month on your statement. This gives you more regularity in your costs, allowing you to predict expenditures and guide growth.
If you need new machines or fixtures and it’s just a question of whether to lease or buy, consider the benefits of leasing medical equipment. Besides providing tax benefits, leasing increases predictability of costs and helps you focus on expansion of services. Without the need for large down payments on expensive items, updating to the cutting edge of medical care might be more accessible than you think.