Before engaging in any work, it is a common practice to equip yourself with the right tools and equipment. This is the case with the practice of medicine. However, the task of acquiring the right and most suited device for work in this field is more involving and tiresome. This is attributed to the variation in quality and price among the products. Nevertheless, for one to realize the benefits and reap from his investment, it is important to access the services of these tools. That is why this article gives you some tips when planning 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.
The next step is to analyze the implications of individual buy and rent decisions. By doing so, you stand a chance of making the most sound financial decisions. This can best be done by shopping around for different deals across dealers and comparing them. Compare the prices of buying and the lease quotes for rental agreements.
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.
After determining the incremental cash flows, go further in analyzing the data with such other analyzes as net present value, a break even and the present value. This enables you to know both the short term and long term financial implications of every decision. In addition, it denotes the length of time it will take to pay back the initial investment.
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 schedule of repair and cost of service must also fall into play. It is important to note that throughout the rental period, you as the user is responsible for maintaining the device. It is hence important to opt for a deal that has a fair number of services together with a quite convenient service time. In addition, differentiate between the two types of leases (operating versus capital) and select the one that best suits your needs.
Simply put, the question of whether to buy or rent depends on both internal and external factors. For internal factors, the availability of cash, management experience, convenience and policy of the firm come into play.
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.
The next step is to analyze the implications of individual buy and rent decisions. By doing so, you stand a chance of making the most sound financial decisions. This can best be done by shopping around for different deals across dealers and comparing them. Compare the prices of buying and the lease quotes for rental agreements.
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.
After determining the incremental cash flows, go further in analyzing the data with such other analyzes as net present value, a break even and the present value. This enables you to know both the short term and long term financial implications of every decision. In addition, it denotes the length of time it will take to pay back the initial investment.
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 schedule of repair and cost of service must also fall into play. It is important to note that throughout the rental period, you as the user is responsible for maintaining the device. It is hence important to opt for a deal that has a fair number of services together with a quite convenient service time. In addition, differentiate between the two types of leases (operating versus capital) and select the one that best suits your needs.
Simply put, the question of whether to buy or rent depends on both internal and external factors. For internal factors, the availability of cash, management experience, convenience and policy of the firm come into play.
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