Equipment acquisition using various forms of leasing

How best to finance the acquisition of equipment is a major decision. It's important to understand the different kinds of lease structures before selecting one. Any purchase versus lease analysis should include an understanding of lease terms and conditions. Capital and operating leases are two categories under which all leases fall. Capital leases are accounted for much like a loan taken out to finance the purchase of an asset. An operating lease is accounted for differently, having no assets or liabilities booked on the balance sheet. Product acceptance, supply and demand and other less tangible factors play a role in the determination of lease rates. Internal factors must also be considered when making the decision to purchase or lease. It is critical that the method selected for financing be appropriately matched to the intended use of the equipment. An important factor when leasing medical equipment is how it will be disposed of at the end of the lease term. There are a variety of options available, from third-party sources to seeking trade-in credits, good toward the purchase of new equipment. It's important to consider the tax implications associated with leasing or buying assets.