Medical equipment is never cheap, and with the constant change of medical technology, companies are looking for a better route to take. They find it through leasing equipment. The leasing of the material is growing more and more, year by year.

According to the global market for the medical equipment leasing industry is expected to reach $63.1 billion by 2020. This just goes to show how much leasing is helping the pharmaceutical industry. What are some of the advantages to this, though?

1. Adaptability:

Being able to get the best technology whenever you need is excellent for the medical industry. This way you can offer your customers the best and the get the best for your hospital. With leasing hospital equipment, you won’t be stuck with that out of date gear; you can update equipment at a much faster rate than if you were to buy it.

2. Money Saving:

The IRS doesn’t consider all leases as purchases. So when your company goes to invest, many of your leases could be regarded as tax-deductible expenses. Compared to all of the money your business would spend on buying up front, leasing can also save you a lot more.

3. Faster Process:

Filing for leasing applications is known for being a lot faster of a process than having to buy the equipment directly from many providers. For the medical industry, this means a lot. As a lack of proper equipment can be the risks of some patient’s health.

4. Payments:

This works into the whole leasing process being faster related to buying new equipment. Typically your company would have to get a loan to make the investment in new equipment. With leasing, you go to the seller directly, apply, and carry out the required payments. Your company will know what those costs are as it is uncommon for there to be any hidden fees or large down payments.

5: Security:

The leasing company that provided your hospital the equipment is often responsible for that material. Any repairs or replacements needed can be guaranteed for absolutely no cost or a minimum payment. If your company were to invest in their personal equipment, the condition or loss of it would be for the amount of your business.

6: End of Terms:

When your leasing plan has completed, your business doesn’t just have to send it back to the provider. Most rental companies offer some flexibility and allow your hospital to continue the leasing or even only to buy the equipment. That is typically a great opportunity for your hospital to make the upgrade to more updated equipment to lease.

If your company were to invest in medical devices, when deciding to make the upgrade you would then have to sell that machine. This process is a disaster for many companies as the value of the equipment is often not even worth half of the value of the investment your organization had put into it. This puts your business at a significant loss.

7: Simple Process:

Similar to payments, companies know what to expect. They apply, negotiate their plan, and order equipment. Compared to seeking loans, there are only two parties involved in leasing.

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