Renting your laser equipment is not the only alternative available to you, so you need to look at other options carefully before making a final determination. Purchasing or leasing may better fit your business plans, depending on what you want to accomplish.
Review Cash Flow in Your Business
You need to think about how much money you have available before you decide which option will work best. With a lot of funds available and no immediate needs, purchasing a laser machine might be right for you. However, if you want to keep your funds in reserve, a short-term rental would be a better choice. Looking at how much business you anticipate down the road should also be taken into consideration.
Taxes Can Be Affected by Your Choice
Everyone loves saving money when it comes to our tax returns. We look forward to getting as much back as possible on a refund. Receiving a refund is a significant matter when you own a business. Leasing your laser machine is a business expense, one that usually counts as entirely deductible on the return.
Difficulty with Getting a Loan
Obtaining a loan on your laser machine may sound like a good idea at the time, but it may cause issues down the road. You may have the need for financing in the future for an unexpected expense. A long-term loan may tie up your credit and lead to your being declined for another one. Being approved for a loan is a challenging enough process to start with.
Leasing Won't Leave You Cash Strapped
Outright purchasing a medical laser drains your existing Reserve funds, leaving very little left for anything else. When making the decision as to whether purchase or lease, remember to take into account your future needs and expenses. If you plan to expand your business or modernize your equipment, leasing might be your best option. Read-more.
Review Tax Incentives Yearly
Tax codes vary from year to year, so companies should review them before making a final decision as to purchasing, leasing or financing laser equipment. Section 179 of the tax codes addresses deductions of business expenses with the amounts ascertained by Congress. One year, it might be more beneficial to buy equipment while another year, leasing is the best option.
Dependent on the year, section 179 may allow a maximum of $500,000 for laser equipment that is bought for your company. This can decrease the income amount considered taxable in that year. The best advice is that you speak to a tax accountant about your business equipment needs. They can advise which option will benefit you most. Always keep your long-term business plans and client needs in mind to avoid making a rash decision.