Life is filled with choices and among them, one of the myriads of choices doctors have to face is whether to buy or lease medical equipment. For hospitals and other healthcare facilities, medical equipment is one of the biggest expenditure items. Not only does it require a significant outlay to buy, but maintenance and cleaning costs all add up along with repairs when equipment gets damaged.
As medical technology continues to improve, it’s crucial for healthcare providers to keep up with these developments. However, constantly buying new equipment outright can be very costly. That is why leasing is an attractive option for many healthcare professionals.
Buying medical equipment is a more serviceable option for certain equipment that has longer life cycles and needs less maintenance. There are also many Professional loans for doctors, such as Medical Equipment Loans that could help you to upgrade in a more budget-friendly way.
1. Low initial cost
Running a hospital or clinic is extremely expensive and paying a high upfront amount for medical equipment is never easy. When you lease equipment, it allows you to pay a low initial cost and pay the remaining balance in instalments. You can buy multiple equipment and not drain all your funds in that process. You can also get Medical Equipment Loan for Hospitals of up to 3 Crore with Poonawalla Fincorp.
2. Liberty to upgrade
Technology is constantly evolving, and a piece of equipment considered advanced five years ago may become obsolete in a matter of years. When you lease equipment, you have more freedom to upgrade it once the lease is over. This is a significant benefit of leasing medical equipment.
Leasing provides you with the financial flexibility to acquire cutting-edge technology for the benefit of your patients. Furthermore, you have the option of upgrading your older equipment, allowing you to transform your health facility into a cutting-edge institution without breaking the bank. When you buy equipment, however, you may not have that financial flexibility.
3. Tax benefits
Taxes on medical equipment leasing are deductible expenses. Medical facilities may deduct lease payments from their income in order to reduce their tax burden, thereby lowering the lease cost.
4. Save time and money
Despite the low initial cost, leasing removes the burden of additional costs associated with purchasing medical equipment, such as procurement and servicing costs. Furthermore, leasing saves you time in terms of documentation and approval.
5. Reduced maintenance and repair costs
Healthcare equipment can be subjected to some harsh treatment. To extend equipment lifespan and improve patient safety, facilities must implement robust maintenance, cleaning, and repair programmes.
However, medical equipment maintenance costs can be very high, especially since parts are expensive to replace and technician fees are costly. When you lease equipment, the leasing company manages all the repairs and maintenance, lowering overall costs.
Leasing medical equipment has various advantages, the most important of which is a low down payment cost. However, even though the initial payment for equipment leasing is inexpensive, it can cost you more in the long run. Additionally, because the finance company is the owner of the leased equipment, it does not raise the value of your practice. Thus, no doubt leasing medical equipment appears to be a viable option, but let’s consider a few things before doing so.
1. Long-term costs can be higher
While the initial price of medical equipment leasing may be lower, the payments may eventually mount up to more than the cost of purchasing the equipment outright. You will always have monthly payments if you're leasing, but they'll end after you've paid off the loan.
2. Less flexibility with modifications and repairs
As you will be returning the equipment at the end of the lease, you may not be able to make modifications such as attaching extra tools or changing beyond the factory settings. You will also have to follow the leasing company's maintenance and repair policies, which means you can't just hire anyone to fix the equipment when it fails.
3. Does not build practice equity
Paying off a lease does not directly increase the value of your practice because you won’t own the equipment at the end of the agreement. This is not to say that leasing does not increase the value of your practice. You will provide a better experience with better equipment, which may result in more patients. You will not, however, be able to sell the equipment along with your practice.
So, you should always explore the best-suited solutions to fund your medical practice. Poonawalla Fincorp Professional Loan for Doctors is specifically curated to offer the best-in-class features and benefits with competitive interest rates. Upgrading to high-quality medical equipment can be a costly affair. So in order to help you provide the greatest treatment for your patients, we offer Medical Equipment Loan with the best interest rates in the industry.
Loans are available to doctors not only for the latest medical technology acquisition and adoption but also for the establishment and expansion of their clinics. Doctors may also use Medical Equipment Loans in the following ways:
- To acquire new machinery
- To buy office supplies or other hospital improvements
- To update the clinic's equipment
- To invest in cutting-edge tools for delivering optimal care
- Enhancing and modernising operational systems
- To bring in top-notch laboratory equipment
At Poonawala Fincorp, we value innovation and think that, when applied properly, technology can contribute to the creation of a better world. With our faith in technology and our commitment to giving our clients the greatest financial products and services that may fully realise their potential, we offer Professional Loan designed exclusively to meet the needs of medical professionals.
The decision to lease or buy equipment is ultimately determined by your budget, how quickly the equipment will be replaced by a newer version, and the value of outsourcing services such as cleaning, maintenance, and testing.
There are many types of equipment that can become valuable assets if you can afford to buy them outright. However, if purchasing puts your facility under strain or puts it at risk for any of the reasons mentioned in this article, you may want to consider leasing.
Medical spaces and equipment require quite a hefty investment, with each machine costing a significant amount after you have already spent a small fortune on college. Since this amount can be too much for any single person to afford, there are other avenues these days that can help you finance your practice and fulfil your dream.
Technology and medicine go hand in hand in todayâ€™s times. With the rapid advancement in the field of technology and medicine, being up to date is essential for any doctor or medical professional.
Your dental practice requires a lot of sophisticated tools and machines, whether drills, physio dispensers, dental chairs or accessories, dental lasers, handpieces, sterilization, and general equipment.