Certain pieces of equipment, machinery and technology are essential to the operation of your business. Whether it’s the dental chair and CBCT machine that power your clinic, the clinical rehab equipment used in an allied health practice, the specialised computing and plotting hardware architects rely on, or the precision machinery driving a high-tech manufacturing line.

But when a critical business asset is required, should you buy it outright or lease it and pay for it in manageable instalments?

To buy or to lease? That is the question.

Buying new equipment, plant, machinery, or technology can be a significant investment.
So it’s essential to understand the pros and cons of each option.

Let’s explore both approaches — with examples relevant to the sectors Everalls commonly works with.

Buying: the pros and cons

Pro: You own a tangible business asset

When you buy an asset outright, it appears on your balance sheet and contributes to the value of your practice or business.

Examples:

• A dentist purchasing a long-life autoclave or chair.
• A physio or OT practice acquiring durable treatment tables or clinical equipment.
• Architects investing in office fit-out or large-format plotters that hold value over time.
• Manufacturers buying CNC machines or robotics are integral to production.

You can depreciate the asset for tax purposes and, in some years, may be eligible for accelerated depreciation concessions.

Pro: Full control and long-term use

When you own the asset, you’re not constrained by a lease term or usage limits.

Examples:

• A CBCT machine that will serve a dental practice for 7–10 years.
• Exercise equipment in an allied health clinic with a long usable life.
• Fabrication machinery in a manufacturing facility that becomes part of long-term production capacity.

If your circumstances change, you can also sell the asset and recoup some value.

Con: Large upfront cash outlay

Buying requires cash upfront — which can divert funds from other priorities like hiring, marketing, or growth.

Examples:

• A young dental practice is tying up cash in equipment instead of patient acquisition.
• A small architecture firm is choosing between hardware upgrades and staffing capacity.

Con: You may need additional financing

If you don’t have the cash on hand, finance arrangements add to liabilities and reduce balance sheet flexibility.

Leasing: the pros and cons

Pro: Lower upfront cost

Leasing allows you to access the asset without having to purchase it outright.

Examples:

• A dentist leasing a $160k digital scanner to preserve cash flow.
• Architects leasing high-end computers with regular upgrade cycles.
• Manufacturers are leasing automation equipment that may become obsolete quickly.

This is particularly attractive for start-ups or growing practices that need the equipment now but want to maintain liquidity.

Pro: Payments can be spread out

Leasing converts a major capital purchase into predictable monthly expenses.

Example:
A multidisciplinary health practice can lease diagnostic tools and maintain cash flow to expand services or bring on an additional practitioner.

Con: You may not own the asset

Depending on whether the lease is an operating lease or a finance lease, you may or may not end up with the asset at the end of the term.

Ownership matters more in industries where the asset:

• has strong long-term value
• is used beyond the typical lease period
• integrates into practice goodwill (e.g., some dental equipment)

Con: Total cost may be higher

Interest and leasing charges often mean you pay more than the asset’s original price over time.

Con: Risk of losing access if payments lapse

If the item is mission-critical, such as:

• a sterilisation unit in dentistry,
• clinical equipment in allied health,
• plotters or servers in architecture, or
• manufacturing machinery affecting production line continuity,

— then loss of access can be highly disruptive.

Talk to us about what’s right for your business.

There’s no “one size fits all” approach.  The best decision depends on your:

• cashflow
• tax position
• equipment life cycle
• appetite for future upgrades
• strategic plans
• industry dynamics

We can help you:

• Model the cashflow impact of buying vs leasing
• Confirm tax implications and deductions
• Assess how each option affects your balance sheet
  
• Align the decision with your broader business and personal wealth goals.
  

Our role is to look at your entire situation holistically and help you make the choice that supports both your immediate operations and your long-term strategy. Speak to the team today to determine the right option for your circumtances.