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.
Begin by finding out the kinds of device available for rental. The kinds of assets one can rent vary from one dealer to another. The following are some examples of medical devices you can access through a rental agreement; MRI machines, computers, EMR software, surgery tables, X-ray and ultrasound machines and imaging and diagnostic machines. However, not all equipment may be available for you.
There is also the need to protect the practice against obsolescence. Renting medical devices come handy due to the high rate of obsolescence and depreciation that is associated with them. When you buy, you only stand a chance of reselling them at a throw away price after depreciating. This can be evaded by outsourcing for the services through the rental deal.
When renting the appliances, remember to opt for experienced and reputable renting medical firms. This is particularly the case due to the continuous nature of the relationship established by the agreement. The agreement is a contract and thus should be entered with a company having the utmost good faith.
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 cost of maintaining the equipment should also be determined. Though the initial cost and the monthly payments may appear cheap, be sure to implore the cost of maintaining the equipment operational. Also, it is good to determine the chances of shifting the maintenance responsibility to the rental company. This enables you to lower the general cost of renting the appliance. However, where you cannot bargain and shift the responsibility, remember to rent devices that are a bit affordable to maintain.
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.
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.
Begin by finding out the kinds of device available for rental. The kinds of assets one can rent vary from one dealer to another. The following are some examples of medical devices you can access through a rental agreement; MRI machines, computers, EMR software, surgery tables, X-ray and ultrasound machines and imaging and diagnostic machines. However, not all equipment may be available for you.
There is also the need to protect the practice against obsolescence. Renting medical devices come handy due to the high rate of obsolescence and depreciation that is associated with them. When you buy, you only stand a chance of reselling them at a throw away price after depreciating. This can be evaded by outsourcing for the services through the rental deal.
When renting the appliances, remember to opt for experienced and reputable renting medical firms. This is particularly the case due to the continuous nature of the relationship established by the agreement. The agreement is a contract and thus should be entered with a company having the utmost good faith.
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 cost of maintaining the equipment should also be determined. Though the initial cost and the monthly payments may appear cheap, be sure to implore the cost of maintaining the equipment operational. Also, it is good to determine the chances of shifting the maintenance responsibility to the rental company. This enables you to lower the general cost of renting the appliance. However, where you cannot bargain and shift the responsibility, remember to rent devices that are a bit affordable to maintain.
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.
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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