Like any other medical field, technology is constantly changing in the veterinary industry. We live in an age of tremendous innovation.
While advancements in veterinary technology are welcome and worthy of celebration, it can be difficult for the average veterinary clinic to keep up with it all.
The Cost of Innovation
Veterinary equipment is pricey.
Laser therapy is an example of this. Many veterinarians are incorporating the use of lasers into their practice. It is reported that lasers alleviate pain and inflammation, reduce swelling, stimulate both nerve regeneration and cells involved in tissue repair. Lasers can significantly reduce procedure times and tend to be well-tolerated by animals (and humans). Recovery time can also be greatly reduced when lasers are used.
It’s easy to understand why a veterinary clinic would want to include laser therapy in their services offered. However, the costs involved in upgrading equipment or purchasing a brand new system can appear prohibitive. How can a new or small clinic keep up with changing technology required for new methods?
Veterinary Equipment Financing
Enter equipment lease financing. Yes, even veterinary equipment can be financed! Why should you consider leasing veterinary equipment? Let us count the ways!
- Preserve Your Cash & Line of Credit: Leasing your equipment allows you to preserve your cash and lines of credit for their intended purpose: unexpected expenses or day-to-day business-growing needs. Especially in today’s economy, there is a great deal of security in knowing you have access to your cash when you need it most.
- Easier Budgeting & Cash Flow: You can budget for your monthly lease payment while having the advantage of using your equipment immediately to serve your patients with your new and improved treatment capabilities. Leasing your equipment allows you to plan for your fixed monthly lease payments and enjoy the cash flow generated by using that equipment immediately. Your cost-income ratio is more likely balanced with a lease rather than a large up-front non-leased equipment purchase.
- Increased Production & Profit: Old, worn-out, outdated equipment can greatly diminish your ability to produce the needs of your clientele efficiently and profitably. Equipment leasing enables you to upgrade and expand the services your clinic can offer, allowing for greater profit. Upgrading your equipment allows you to have the “edge” you need to stay competitive.
- Tax Advantages: Typically, leasing provides your clinic with income tax benefits by allowing you to treat the lease payments as an expense rather than depreciating the asset as a capital cost. A leased asset that depreciates in value can be written off more quickly when it is leased. Debt to Equity ratios are also unaffected as the asset does not appear on the balance sheet.
- Increased Buying Power: With the smaller periodic payments of a lease, you increase your operating or capital budget. When the total cost of your equipment is distributed over the lease term, your total equipment purchase does not have to be applied to your annual budget, leaving you more “wiggle room” and even allowing you to add extra features or accessories to your equipment for small increases in your lease payments.
If your clinic needs new or upgraded equipment, don’t let “sticker shock” discourage you. Equipment leasing can make it a reality for you.
Contact one of our leasing specialists to find out how equipment lease financing can help your clinic grow!