There are a few options on how to add cosmetic lasers to your practice. Similar to a car, you can buy, rent or lease aesthetic lasers. The decision should be based on your current business, future expectations and current needs. Understanding these three points will help make the decision.
Should I buy an aesthetic laser?
When you buy a laser hair removal machine, you commit capital. Capital is the cash or reserve money your business needs to survive. If you have a bad month, this reserve will keep your bills paid. Additionally, as a business person, you often see opportunity. The cash you have allows you to capitalize on that opportunity. Locking up that money in the machine will limit your ability to jump when the opportunity comes up.
Should I rent an aesthetic laser?
Renting an aesthetic laser fits the short term need your practice may encounter. For example, a loyal patient wants a specific procedure done and you don’t have the needed machine. You now run the risk of losing the patient to another clinic for this procedure, and maybe all future needs.
By renting a medical laser, you have access to an aesthetic laser that will be able to provide that needed treatment. The cost of the rental will be less than the profits from the procedure. This way you ensure the longevity of the patient and make money.
Should I lease and aesthetic laser?
Leasing an aesthetic laser machine is a great option for doctors or medical spa owners who want to access specific equipment for a long period of time. The lease allows you access to your cash. Additionally, and most importantly, the lease keeps the payment off your balance sheet. When you finance, the credit goes on your credit report. The lease does not. This way when you ask the bank to borrow money to buy the building you have your practice in, they don’t see this as outstanding liability.
Lease payments are 100% tax deductible. This means if you are in the highest tax bracket – and you have a lease payment of $5,000 – your real cost is $2,500.
Leasing medical laser equipment allows you to overcome budget limitations as well. You can acquire the quality and quantity of equipment needed to build a successful practice.
These are some of the considerations you should think about prior to making a decision to buy, lease or rent a cosmetic laser. It may also be wise to talk to your accountant to see the opinion of a qualified tax expert. In some years, section 179 of the tax code will allow you to deduct the entire cost of a purchase against your taxable income up to $500,000. The availability of this deduction depends on Congress and the tax reform they enacted for a given year. In 2014, it was only in December that they made the rule applicable. If it is available, it may make most sense to buy the cosmetic laser.
Again, like laser hair removal treatment and laser type, leasing also depends on your unique situation. By sitting down with an expert, you can see all the angles and make the best decision for your practice.