Why you should upgrade your veterinary equipment

This past weekend, I spoke at the 2016 Ontario Veterinary Medical Association Great Ideas Conference.

This past weekend, I spoke at the 2016 Ontario Veterinary Medical Association Great Ideas Conference. In the presentation, I covered the benefits of regularly upgrading your vet practice’s equipment with leasing:

• You’ll accomplish more in less time
• You’ll increase the level of care your patients receive
• You’ll increase your return on investment

Couldn’t attend? You can check out my PowerPoint and the details of my speech below.

Why you should upgrade your veterinary equipment

Thanks for attending the CWB National Leasing lunch and learn at the 2016 OVMA Great Ideas Conference. I’m here to show you the benefits of upgrading your veterinary equipment and why leasing is your best financing option.

When making the decision to upgrade equipment for your practice, you need to ask yourself three questions:

1. Will your customers benefit by the level of care that you can offer with new equipment?
2. Will the new equipment allow you to accomplish more in less time?
3. And is the equipment going to provide the return on investment that you expect?

When it comes down to actually acquiring the state-of-the-art equipment your practice needs, it can be difficult. Equipment acquisition requires plenty of research and analysis, and it can be an exhaustive process but it’s important to prevent buyer’s remorse. Veterinary equipment isn’t cheap, and let’s face it, the last thing you want is to regret your investment.

Once you’ve decided on which equipment to acquire, it’s time to make another crucial financial decision: should you lease or buy your equipment? Leasing is actually your best option because it provides a number of financial advantages that buying can’t match. Let’s take a look at them.

Regularly upgrade your equipment

A lease can allow you to avoid the risk of owning obsolete equipment since upgrades typically won’t impact cash flow when you acquire new equipment through a lease. You’ll continue with your regular payment. If you bought that equipment, purchasing would require a large cash outlay, which would drastically increase your costs.

Increase your buying power

Financing leverages your buying power like buying can’t. With a lease, you’re more likely to acquire the right equipment that will support your business more effectively rather than focus on the cash price. Equipment becomes more affordable when you view it through a month-by-month perspective. Your monthly payments cost only a fraction of the total cost of your equipment. Your equipment will also increase efficiency so it will produce revenue instantly, offsetting your monthly cost and increasing profit. If you really want to own the equipment once your lease is finished, there’s a lease-to-buy option available.

Potentially write off your lease payments

Don’t think you need a tax strategy for your practice? Well, you should have one. You can usually write-off your full lease payments as an expense, which saves you money on your tax bill. With buying or bank loan financing, you would claim depreciation over the equipment’s useful lifetime. Of course, make sure you speak with your accountant before acquiring any equipment.

Match your cash flow

Ultimately, it’s about cash flow for your practice. You want your practice in the best financial situation possible and that means having the cash available to tackle any opportunity. Earlier, we talked about paying monthly, but with financing’s flexibility, you can structure payments to match your revenue cycles – whether it’s seasonal, semi-annually or annually.

Borrowing option takeaways

So, if there are three things I want you to take away from my presentation it’s this:

1. Regularly upgrading your technology will help your practice become more efficient.
2. With leasing, you can potentially write-off your payments as a tax expense.
3. You can tailor lease payments to match your practice’s revenue and keep cash flow on hand.

Thanks for giving me the opportunity to speak at the 2016 Great Ideas Conference!