Trying to figure out what makes the BEST financial sense for your company isn’t always easy. Often times we get asked the question: “Should I Buy, Lease Or Rent?”, so we decided we would write a blog post to help answer this question. Each option has its pros and cons and really depends on the current state of your business and what you’re trying to achieve financially. Below we cover each option, as well as the pros & cons, so that you can make an informed decision of what will work best for you.


The purchase option is great for a business with high cash flow, that has the ability to purchase capital equipment for cash without it affecting the operational cash flow, and saves financing costs. This is usually the case for established businesses, that have several years history of caseload, can reliably predict future income, and in the event of high taxable income level can be used as a capital write-off (see section 179 deduction).

  • No Financing Fees
  • Can Often Qualify For Section 179 Deduction
  • No Monthly Payments
  • Reduced Cash On Hand
  • Depreciated Over Time (if not qualifying under Section 179)
  • Opportunity Costs Of Investing Capital In Other Aspects Of The Business
  • Service Costs After The Warranty Period


Leasing is a great way to get the equipment you need while keeping your capital in the bank and working for you. A low down payment and first month’s lease payment gets you the equipment you need quickly. The downside to leasing is that you’re committed to a specific term (12, 24, 48, 60 months in most cases), with set payments, and in the event of a change in business, you’re forced to pay this monthly payment. Furthermore, interest rates are also based on business credit (or personal guarantee of business owner/director) and can vary from low to high depending on risk assessment.

  • Low Start-Up Costs
  • Tax Deductible (Most Cases, Verify With Your CPA)
  • Low Monthly Payments
  • Set Term, Even In The Event Of Business Change (Lack Of Flexibility)
  • Interest Rates Vary Based On Business Credit
  • More Costly Compared To Purchase Due To Interest On Financing
  • Service Costs After The Warranty Period


Rentals are ideal for those looking for flexibility. There are many reasons a business might need flexibility, but some of the most common we see in healthcare are new specialties being added, new office or surgical center with limited cash flow due to the build-out, needing equipment for a short time period while waiting on budget approval, equipment needed today to replace broken equipment, etc. Rentals benefit you by allowing you to get the equipment you need today, while still being flexible for your specific situation.

For example, say you want to bring on a new specialty to your surgical center, however, the caseload of the new physician hasn’t been proven yet (you have an idea of caseload, but have not yet billed anything), in order to do so, you need to bring in the equipment needed so that those types of procedures can be performed. With a rental, you can try it out without fully committing to a purchase. Once the caseload is established and billings are underway you can easily convert the rental over to a lease or purchase if you like.

  • Flexible To Meet Your Specific Needs (short terms – daily, weekly, monthly, try before you buy, etc.)
  • Low Start-Up Costs (security deposit + first month’s rent)
  • Earn Equity In Your Rental (50% of rental fees can be applied towards the purchase)
  • No Service Costs (All service costs are covered by Rentals MD)
  • Tax-Deductible (Most Cases, Verify With Your CPA)
  • Payments Are Usually Higher Than A Lease Payment

So to recap, outright purchases are ideal for high cash flow business that could benefit from a major write-off for the tax year, leases are ideal for companies that are more concerned with cash flow but feel comfortable committing to longer-term commitments (3, 4, 5 years), and renting is ideal for those looking to maximize flexibility, or those looking for short-term commitments.

If you feel a rental is ideal for your specific need, we would love to help you out. Simply give us a call toll-free at 833-838-8381 or send us your request using our REQUEST A QUOTE form.