Renting cosmetic laser equipment is the perfect way of growing your practice and generating additional cash flow. By renting, you are able to test your clientele and see if there is a true demand for hair removal and other cosmetic services. Once you establish the need, you can look to buy – but that may not be the best solution depending on your business and personality.

Buying a cosmetic laser is a significant commitment. New equipment will easily cost over $100,000 and then you need to pay the service contracts and for repair. It’s a commitment. While renting offers you the flexibility of returning the aesthetic laser or IPL equipment. Most companies will lease cosmetic laser equipment for a short term. The pricing on the rental is based on how long you commit, but to test out your appetite for cosmetics as a part of your business, it is well worth a one to two month rental.

Additionally, renting medical laser and IPL equipment will allow you to learn about the business and the technology. Perhaps you have clientele with one skin type or multiple skin types – which machine should you commit to? It’s hard to say before you test it out.

Cosmetic Laser rental allow you to offer additional services to patients such as:

• Skin Tightening
• Liposuction
• Skin Resurfacing
• Skin Rejuvenation
• Pigmented Lesion Removal
• Hair Removal
• Vascular Lesion Removal

Once you know what medical laser machine fits you best, you still need to decide on buying vs renting. Each business is unique – here’s a look at both options:

Leasing Medical Laser Equipment

Leasing equipment preserves capital and provides flexibility.

Advantages of Leasing Cosmetic Laser and IPL Equipment

Less initial expense. The primary advantage of leasing medical equipment is that it allows you to acquire assets with minimal initial expenditures

Tax deductible. Lease payments can usually be deducted as business expenses on your tax return, reducing the net cost of your lease.

Flexible terms. Leases are usually easier to obtain and have more flexible terms than loans for buying equipment.

Easier to upgrade equipment. Leasing allows businesses to address the problem of obsolescence. A lease passes the burden of obsolescence onto the lessor. You are free to lease new, higher-end equipment after your lease expires.

Disadvantages of Leasing Aesthetic Laser Equipment

Higher overall cost. Leasing an item is almost always more expensive than purchasing it.

You don’t own it. You don’t build equity in the equipment.

Obligation to pay for entire lease term. You are obligated to make payments for the entire lease period.

Advantages of Buying Aesthetic Laser and IPL Equipment

Ownership. The most obvious advantage of buying business equipment is that you gain ownership of it.

Tax incentives. Section 179 of the Internal Revenue Code allows you to fully deduct the cost of some newly purchased assets in the first year. In 2012 and 2013, you can deduct up to $500,000 of equipment (subject to a phase-out if you placed more than $2,000,000 of equipment in service in any one year). For example, if you are in the 25% tax bracket and you purchase $100,000 in business equipment this year, the net cost to you is only $75,000.

Disadvantages of Buying Medical Laser and IPL Equipment

Higher initial expense. For some people, purchasing business equipment may not be an option because the initial cash outlay is too high.

Getting stuck with old equipment. Although ownership is perhaps the biggest advantage to buying business equipment, it can also be a disadvantage. Certain business equipment has very little resale value.

Should You Buy or Lease?

When deciding whether to buy or rent a particular medical laser or IPL equipment, try to figure out the approximate net cost of that asset. Be sure to factor in tax breaks and resale value when making this calculation.