Before opting for rental option for any kind of device, it is important to examine other available options. The other option one can look foe is certainly the buy option. In fact, the equipment acquisition process entails comparing between the two alternatives. This comparison should put in mind the analysis of qualitative factors and what comes as good for the business. You should fully understand the financial aspects of your enterprise and tailor the decision to its maximization. This article provides you with some insights in case you are looking forward to rent medical equipment.
The initial step is to evaluate the financial position of your practice. The two possible device acquisitions are the buy and rent options, which have different inherent implications. On one hand, the purchase option incurs a large cash outlay at once, while the rent option implies monthly remittances. The convenience accrued to them, thus varies. However, the extent of cash available determines the type of choice to be adopted.
There is also the need to protect your firm against obsolescence. Before deciding whether to rent or buy, ensure to analyze each option by matching the productive life of the device with the liability connected with the acquisition of the asset. Medical equipment depreciates at a very high rate and should be well provided for in the decision. Renting helps you to capitalize on the depreciation of your rather high-end equipment.
Like in any other decision, remember to obtain the necessary information. The feasibility of different projects can only be analyzed based on pertinent information. For, example, the cash flow of the different projects can be determined from the data obtained from the market analysis. As such examine the incremental cash flows of the project in an effort to ascertain their viability.
Apart from the sales support, consider analyzing the monthly payments and compare them against the cost of buying. The best deal can only be approached at by making a comparison between the two payments. Consider the long term implications of the monthly payments and weigh the costs against a lump sum purchase. The monthly payments will always outweigh the cost of the asset, but be sure to examine the convenience too.
The other factor worth your interest is the cost of repair and maintenance. The initial step before settling on whether to rent is evaluating the maintenance cost implications of both alternatives. In a rental agreement, determine whether the responsibility of maintenance is upon you or retained by the company. Remember that where you are responsible for the maintenance, opt for the rental of less costly equipment in terms of maintenance. Devices that require high costs of maintenance should only be leased when the company retains the repair and maintenance service.
The frequency of usage of the product also falls into play. When the device in question is to be used frequently, such machine must be readily available and hence ideal to buy. On the other hand, a gadget that is only used on rare occasions comes handy with a rental option. This is especially the case because it is absurd to invest large sums of money on an asset that will only be used once in a while.
All in all, the decision lies with you. Remember that no one else knows exactly the equipment needs of your firm and the financial position. However, do yourself good by opting for the right investment.
The initial step is to evaluate the financial position of your practice. The two possible device acquisitions are the buy and rent options, which have different inherent implications. On one hand, the purchase option incurs a large cash outlay at once, while the rent option implies monthly remittances. The convenience accrued to them, thus varies. However, the extent of cash available determines the type of choice to be adopted.
There is also the need to protect your firm against obsolescence. Before deciding whether to rent or buy, ensure to analyze each option by matching the productive life of the device with the liability connected with the acquisition of the asset. Medical equipment depreciates at a very high rate and should be well provided for in the decision. Renting helps you to capitalize on the depreciation of your rather high-end equipment.
Like in any other decision, remember to obtain the necessary information. The feasibility of different projects can only be analyzed based on pertinent information. For, example, the cash flow of the different projects can be determined from the data obtained from the market analysis. As such examine the incremental cash flows of the project in an effort to ascertain their viability.
Apart from the sales support, consider analyzing the monthly payments and compare them against the cost of buying. The best deal can only be approached at by making a comparison between the two payments. Consider the long term implications of the monthly payments and weigh the costs against a lump sum purchase. The monthly payments will always outweigh the cost of the asset, but be sure to examine the convenience too.
The other factor worth your interest is the cost of repair and maintenance. The initial step before settling on whether to rent is evaluating the maintenance cost implications of both alternatives. In a rental agreement, determine whether the responsibility of maintenance is upon you or retained by the company. Remember that where you are responsible for the maintenance, opt for the rental of less costly equipment in terms of maintenance. Devices that require high costs of maintenance should only be leased when the company retains the repair and maintenance service.
The frequency of usage of the product also falls into play. When the device in question is to be used frequently, such machine must be readily available and hence ideal to buy. On the other hand, a gadget that is only used on rare occasions comes handy with a rental option. This is especially the case because it is absurd to invest large sums of money on an asset that will only be used once in a while.
All in all, the decision lies with you. Remember that no one else knows exactly the equipment needs of your firm and the financial position. However, do yourself good by opting for the right investment.
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