Starting a lab is a significant undertaking that, while rewarding, can come with a set of challenges. Among these, the steep cost of acquiring and maintaining laboratory equipment often stands as a formidable hurdle.

This barrier to entry can pose a significant setback, especially if your start-up has limited capital. However, a cost-effective solution exists to help you overcome this challenge: equipment leasing. 

This article will explore how leasing laboratory equipment can propel your start-up lab towards success. It’ll also share the different leasing plans you can take advantage of to get the best of this practice.

Equipment Leasing 101

When you’re setting up a new lab, you may need equipment like microscopes, centrifuges, and more. While essential, the cost of purchasing this equipment outright can be prohibitive. This is where the option to rent a microscope or other lab equipment comes into play. 

There are several leasing options available, each with its own benefits and considerations.  

Leasing Options For Start-Up Labs 

Here are the most common leasing options:

• Operating/Fair Market Value Lease 

This alternative allows you to rent equipment for a specified period, typically shorter than the equipment’s useful life. At the end of the lease, you can choose to return the equipment, renew the lease, or purchase the equipment at its fair market value. 

Operating leases are ideal if you want to keep up with the latest technology and plan to upgrade regularly. 

• Finance Lease 

Also known as a capital lease, this option operates more like a loan. You make regular payments over a specified period, and you own the equipment at the end of the lease. This option is suitable if your end goal is to own the equipment. 

• Sale And Leaseback 

In this arrangement, you sell your already-owned equipment to a leasing company and then lease it back. This option can free up capital tied up in owned equipment while still allowing you to use the equipment. 

• Master Lease 

This option allows you to lease various pieces of equipment under one contract, potentially from different suppliers. It’s useful if you need to acquire a range of equipment but want to manage it all under one agreement. 

• Deferred Payment Lease 

This option allows you to defer the start of your lease payments for a certain period, often three to six months. This option can be advantageous when you require equipment immediately but are waiting for funding or revenue to come in. 

Benefits Of Equipment Leasing

Equipment leasing offers several advantages that can help your start-up lab overcome these barriers to entry: 

1. Leasing allows you to spread the equipment cost over a while rather than paying a large sum upfront. This can significantly improve your cash flow and free up capital for other critical business areas. 
2. Leasing allows you to use the most up-to-date equipment without the financial burden of purchasing it. As technology advances, you can upgrade your equipment to stay at the forefront of your field. 
3. The leasing company bears the risk of equipment becoming obsolete, not your lab. This means you can focus on your research without worrying about depreciating equipment. 
4. Many leasing companies offer comprehensive maintenance and support services. This means you won’t have to shoulder the cost or stress of repairs if something goes wrong. 

These are the general benefits that your startup can enjoy if it leases equipment.

Best Practices When Leasing Lab Equipment 

Following some best practices when leasing lab equipment can maximize your agreement’s benefits. Here are some key points to keep in mind: 

1. Before entering into a lease agreement, have a clear understanding of your lab’s specific needs. Consider the type of research you’ll be conducting, the equipment you’ll need, and how often you’ll use it. 
2. Not all leasing companies are created equal. Do your homework and choose a reputable company that understands the needs of start-up labs. 
3. Make sure you understand all the terms and conditions before signing. Pay particular attention to the lease duration, payment terms, and what happens at the end of the lease. 
4. Ideally, your lease agreement should include maintenance and support services. This can save you significant time and money in the event of equipment malfunction.

By following these best practices, you can make the best of your equipment leasing experience.

 

Final Thoughts 

The right tools are crucial for your lab’s success. So, whether you need to rent a microscope or lease an entire lab equipment suite, leasing emerges as a cost-effective solution.  

It’s always a good idea to consult with a financial advisor or leasing expert to understand which option is the most beneficial for your circumstances.