Replacing dental equipment every few years may not be practical or feasible for employing multiple dentists with various specialties. Leasing equipment for a dental office can ensure dentists have everything they need to offer their patients the highest quality care.
Reasons To Lease Dental Equipment
Although leasing can be expensive, it comes with many benefits that make it a preferable solution for dentists who want to maintain state-of-the-art equipment. Having new equipment gives patients the confidence that their dentist can provide the most practical solutions for their dental concerns.
For dentists, equipment leasing also makes good business sense.
- Repairs are covered. Dental practices that lease their equipment can leave repairs, replacements, and upgrades up to the leasing company. Lessors include a wide range of services to ensure that dentists can focus on their patients rather than worry about faulty equipment getting in their way.
- Rates are flexible. Traditional lenders dictate loan or financing terms for which borrowers have no input. Equipment leasing services are willing to negotiate interest rates or offer the best rates to borrowers with excellent credit scores.
- Credit history is not a consideration. Although good credit can help lessees negotiate favorable rates, equipment leasing services are less likely to make it a prerequisite for working with a dental office. Some lessors are willing to overlook poor credit history, though they may insist upon higher interest rates.
- Lessees can preserve their credit lines. Equipment leases do not rely upon existing lines of credit that can remain free to make necessary purchases or support a practice’s operating costs.
- Tax deductions are possible. Equipment leasing allows dental practices to deduct monthly payments from their income. The federal government categorizes lease payments as business expenses that can reduce tax payments.
- Upgrades are possible. A critical advantage of leasing over owning dental equipment is always having access to the latest equipment to improve patient care. Dentists who purchase their equipment may discover that it is obsolete within a few years, necessitating additional purchases that can significantly cut profits over time.
Reasons Not To Lease Dental Equipment
Although dental equipment leasing comes with numerous benefits, it is helpful to understand the drawbacks. For example, dentists may find that leasing reduces the value of a practice they want to sell. On the other hand, owning all equipment can build practice equity.
Another downside of leasing is that payments are ongoing. Over time, the total value of monthly payments can exceed the cost of equipment purchases.
Careful consideration of the pros and cons of leasing equipment for a dental office can lead to decisions that work for dentists and their patients.
