How to pay for new equipment at your veterinary clinic

When it comes to buying such items as digital radiography, laser therapy and imaging equipment, veterinarians have three payment options, says Gary Glassman, CPA.

1. Pay cash.

2. Sign a lease.

3. Craft a financing arrangement with a bank.

It may be tempting to go for a lease, but Glassman says you should always know what you're getting into. Many leases are drawn up so that there's no way to get out except to pay in full. Plus, many leases are required under state law to include sales tax so you end up paying interest on that tax. How about those other two options? If you aren't able to pay cash, Glassman says there are veterinary lenders who will provide 100 percent financing.

"Veterinary lenders are especially accommodating—they know the industry," Glassman says. "You submit one-page applications and in less than 24 hours you get a response back."

Remember to not only consider the price of the equipment, but its related ongoing expenses, such as maintenance, supplies, insurance and possible added payroll costs, Glassman says. These are good topics to talk over with the equipment company before making the big purchase final.