Leasing vs. Buying: Which strategy should you adopt for your clinic's equipment

As an experienced medical practitioner and a business owner, no one knows the value that the right equipment adds to your clinic quite like you do. After all, adopting advanced technology helps you catch illnesses quicker and more accurately, and allows you to treat them efficiently. In a situation where you are deciding to expand your clinic or refurbishing it with the latest equipment, you may debate whether you should lease equipment or buy it instead. To help you make the decision that’s best for the growth, efficiency and profits of your clinic, here’s a simple guide that will take you through the pros and cons of both.

When should you lease equipment?

If you are in the need for sophisticated medical equipment like an MRI machine, a resting ECG machine, an ultrasound machine, etc., and do not have the financial resources to purchase the same, you can consider leasing medical equipment for your clinic. But, before you make this decision, also look into the maintenance and servicing costs. Are these included in your lease agreement? Will the total cost come close to the amount you will shell out to buy the equipment yourself? These are important questions to consider before making a choice.

Another situation where it makes sense for you to lease equipment is when you are adding new verticals of medicine to the services that you are offering currently, and want to take baby steps before making a commitment. For instance, if you are adding a prenatal care wing, you may want to hire the equipment first, and see the number of patients that visit you in the first year before you commit to making a purchase. This eliminates the possibility of incurring a heavy loss and allows you to make capital expenditure once you start generating profits from this new addition to your clinic.

When should you buy equipment?

If you do not have a financial limitation or have a corpus of capital saved precisely for this purpose, then by all means, consider purchasing the medical equipment that you will use frequently at your medical practice. For instance, if you are an orthopaedic doctor, an X-Ray machine is likely to come handy. Not only will you build your business’ capital assets, but you will also enjoy longer shelf life of the equipment. This is because you will be able to maintain and use it in the right manner.

But, before you make a purchase, do a thorough analysis. Choose from the models available and decide if it makes sense to splurge on the latest model or an older model will do the job just fine. Also, ensure that you don’t invest in equipment that is likely to be obsolete soon. If you suspect this, it is best to wait a few months before making a purchase. Once you decide on a model and know its associated costs, do a cost-benefit analysis. Also, calculate by when you will be able to recover the amount that you have spent on the equipment.

How to finance medical equipment?

Whether you decide to lease medical equipment or buy the same, you will need ample funds. You can raise this amount by using income from investments or your business’ cash reserves. Additionally, you can also choose to get financial help by applying for a business loan. To buy equipment for your clinic, you can even apply for a customised loan tailored for this purpose. For instance, the Bajaj Finserv Medical Equipment Loan gives you up to Rs. 15 crore in just 24 hours. You don’t have to submit any collateral and you can apply online, between appointments. The short application form takes just minutes to fill. So, when it comes to matters of medical equipment, be thorough in your analysis. Once you weigh all the benefits and disadvantages, apply for a pre-approved medical equipment loan to get finance instantly.