subject: Why Leasing Medical Equipment Makes Sense [print this page] Why Leasing Medical Equipment Makes Sense
Flexibility: As the provider's practice grows and equipment technology increases, leasing allows for the owner to easily add-on or upgrade their package. It is important to build in upgrade features at the inception of the lease. Also, installation and maintenance, and other services can be added to the lease.
Speed: As opposed to bank financing, leasing can provide the needed equipment in a matter of days. Typically, a one-page lease agreement is executed and approval can occur in a matter of hours. It often takes bank loan committees several weeks to approve a medical equipment loan.
Tax Advantages: An operating medical equipment lease (also known as a true lease) generally allows the lessee to write off 100% of lease payments made during the year. The equipment write-off is tied to the lease term, which can be shorter than IRS depreciation schedules, resulting in larger tax deductions each year. The deduction is also the same every year, which simplifies budgeting.
Maintains capital reserves: Leasing medical equipment allows you to buy the equipment and tools you need today while spreading out all the payments over time. This provides you with a cash reserve for day to day expenses. Since a true lease is not a long term obligation, it will not show up on your balance sheet, so the company will be more attractive to a conventional lender when or if one is needed in the future.
Whether you need short-term renting or long-term leasing, Davis Medical can provide your practice with the best rental or lease plan for medical equipment. We will help you lease great medical equipmentquickly and without any hasslefrom our large inventory of new and refurbished equipment.
