In our October issue, our feature article, “Equipment Buying Checklist”  presents questions ECPs should consider before embarking on buying or upgrading in-office lab equipment. The equipment itself is just part of the decision. How to finance the purchase is another issue, with many pros and cons.
Lisa Hartley, vice president of Univest Capital, Inc. (Univest.net), weighs in on some financial questions facing ECPs during their purchasing decisions:
 
Paperwork
“Depending on how much an eyecare practitioner is looking to purchase, he may want to get his financial information in line (i.e. tax returns, internal financial statements, etc.). Some finance companies will need these in order to make a credit decision (usually for six-figure deals).”
 
New Vs. Used
“From a financial standpoint, there are no real pros/cons regarding purchasing new equipment vs. refurbished or previously owned. There certainly is a used market for equipment that would be great for a newer company looking to save money. Some finance companies are hesitant to finance used equipment, so the buyer should check to make sure they finance through their preferred lender.”
 
Lease Vs. Buy
“The advantage here goes to leasing. Capital is king! Keep your cash for situations in which a leasing company would not be able to help with (emergencies, payroll, construction of office, etc.) With rates at all-time lows, financing is the way to go.”
 
Terms  
“The shorter the term, the less you pay back, however, we have found most doctors go with 60 months to keep their cash flow healthy.”
 
Tax Deductions
“As if right now, the IRS limit for tax deductions regarding new equipment is only $25,000, however, that does not mean it can change before year end. Last year, Congress increased it the end of December.”

(photo courtesy of Coburn Technologies)