Keeping up with the pace of technology can be a daunting task as a provider. With so many new pieces hitting the market every quarter, it’s hard to determine when it’s time to invest in the next best thing.  While new equipment can create a ton of revenue potential for your business through expanded service offerings and streamlined efficiencies, broken or unused equipment can cost practices a fortune. So how do you know if the price is right?

So before purchasing any expensive equipment, please ensure you have the financial capacity to do so. Creating a budget will be your first step in determining whether or not you have the cash flow needed to sustain the frequent recurring payments. Once you have confirmed with your budget that you can afford the device, you now have two options: lease or buy.

1. Leasing a device:

Pro:  This option gives you a bit more flexibility when it comes to the financial commitment. By leasing, you’re saving money upfront as well as opting out of the pesky service fees. You also have the financial freedom to continue upgrading to newer devices as they are released.

Con: While leasing may result in lower short-term payments, you are typically making these payments over a longer period of time so you are ultimately paying more for the device. Additionally, leasing the equipment also means you are consistently incurring an expense without accruing the device as an asset that can potentially be sold later.

2. Buying the device:

Pro: If your practice is more established and the equipment is essential for your growth, buying can be a great investment! If you have the financial means, you can avoid interest payments altogether. Buying the medical device can not only be cheaper in the long run but will increase your practice value.

Cons: However, purchasing has its drawbacks too. For starters, purchasing equipment requires a larger upfront investment, meaning you are making higher payments at the beginning of acquiring the new device before you have even had the chance to receive any of the added benefits from having received the device.

Ultimately, your decision to buy vs. lease will vary depending on your cash flow, the device itself, your relationship with the bank, and obviously, your goals as a business! If you are uncertain how to proceed, but know you are interested in acquiring a new piece of equipment, let us help! We are always here to guide you through these tough financial decisions so do not hesitate to schedule a complimentary financial assessment at www.mavenfp.com!