Should you lease or finance chiropractic equipment?
You don’t have to pick one structure for the whole office. Here’s how leasing and financing work on chiropractic equipment, piece by piece, what happens when a lease ends, and how to choose before you sign.
On this page
What’s the difference between leasing and financing chiropractic equipment?
Who owns it. With an EFA, the table or laser is yours from the first day, the funder holds a lien until it’s paid off, and the payments take the full price to zero. With a lease, the funder owns the equipment for the term, and you choose the buyout before you sign:
- $1 buyout. The payment lands close to an EFA’s, and the equipment is yours for a dollar once the last payment clears.
- 10% option. A somewhat lower payment, with the purchase price fixed the day you sign.
- Fair market value. The lowest payment of the three. At the end, you buy at market value, move up to something newer or give it back.
So you’re really deciding whether to own it (an EFA or $1 buyout) or keep an exit (an FMV lease). The mechanics are on our equipment financing and equipment leasing pages.
Which structure fits each piece of chiropractic equipment?
Three things decide it: how long the piece stays useful, how fast newer models replace it, and what it’s worth used.
| Equipment | How it ages | Structure that usually fits |
|---|---|---|
| Adjusting and drop tables | Mechanical, in service a decade or more, holds value | Own it: an EFA or $1 buyout |
| Spinal decompression | The frame lasts; the controller and software age | Own it, or a 10% option for a lower payment |
| Class IV laser | Moves faster than tables; diode hours and support set used value | A 10% or FMV lease |
| X-ray and digital imaging | Detectors and software date before the generator does | A 10% or FMV lease on digital; own it if the setup won’t change |
| Shockwave, modalities and EHR software | Smaller pieces, replaced one at a time | The same agreement as the bigger piece |
Tables are the easy call. A good one stays in service for ten years or more and holds its value, so paying for the right to hand it back makes little sense. That’s also why tables suit our longest chiropractic term, 72 months on an EFA. I’d own them every time.
Decompression sits in the middle. The table lasts, but the controller and software age, and on a used system we’ll check both, plus whether the manufacturer still supports it. Planning to run it for years? Own it. Want the payment lower? A 10% option does that and still fixes your buyout price. Either way, run the payment against a realistic case count first.
Class IV lasers are a good fit for a lease. Laser technology moves faster than tables, so a 10% or FMV lease gives you a lower payment and a way to move to a newer unit later. Sure you’ll keep it? A $1 buyout works fine.
X-ray and digital imaging work the same way. Imaging is also the piece most likely to push a deal past the application-only limit, and above it we usually ask for three to six months of business bank statements and a recent tax return. Most states require X-ray registration and a physicist survey before you image a patient, so start that early.
Shockwave, ultrasound, e-stim and EHR software usually ride on the same agreement as the tables or a laser and follow its structure. Software dates quickly, so it fits better on a laser or X-ray lease. You get one payment, and a small add-on doesn’t need to reach the usual $15,000 minimum on its own. Our chiropractic equipment financing page lists everything we fund for a practice.
What do the payments look like if you finance to own?
Here’s what owning four common purchases looks like on an EFA or a $1 buyout lease, which run about the same each month:
| Example purchase | 36 months | 48 months | 60 months |
|---|---|---|---|
| Two adjusting tables, $30,000 | $954 | $747 | $623 |
| Class IV laser, $28,000 | $890 | $697 | $581 |
| Decompression system, $45,000 | $1,431 | $1,120 | $934 |
| Digital X-ray room, $70,000 | $2,226 | $1,742 | $1,453 |
Estimated example payments for an established practice (two or more years in business), financed in full with no money down. Actual payments depend on credit, the equipment and the term. Examples, not quotes.
Tables can go further. On an EFA, $30,000 of tables comes to about $541 a month over 72 months. Leases stop at 60.
On the laser and X-ray rows, a 10% option comes in lower and an FMV lease lower still. We price those on your actual quote.
Every example here fits under the application-only limit of about $75,000 for most established practices, with no tax returns or financial statements.
What happens at the end of a chiropractic equipment lease?
That depends on the buyout you chose. On a $1 buyout, you pay the dollar and the title transfers. On a 10% option, you pay the price you agreed to at the start. On an FMV lease, you can buy at market value, roll into newer equipment or return it and owe nothing further on it.
The FMV lease has the fine print to read before you sign:
- The notice window. Many FMV leases need written notice by a set date if you’ll buy the equipment or send it back. Miss it and the lease may renew month to month. Put it on your calendar the week you sign.
- How market value gets set. A laser valued in place and working can be worth far more than one boxed up for resale.
- Return conditions. Who pays to de-install and ship it, and what shape it has to be in.
- X-ray paperwork. Before a registered unit leaves the office, ask your state’s radiation control program what it needs from you.
Have your attorney read the end-of-term section before you sign.
Can you upgrade leased equipment before the term ends?
On qualifying leases, yes. Five West can restructure mid-term, rolling what’s left on your lease into a new one on newer equipment. That matters most on a laser or digital imaging. Adding equipment mid-term is possible on a qualifying lease too.
An EFA has no upgrade path built in, since you own the equipment. You can still sell or trade it and pay off the balance, so ask how early payoff works before you sign.
Can you lease or finance used chiropractic equipment?
Yes, on either structure. We finance new, used and refurbished chiropractic equipment from dealers, auctions and private sellers. Used equipment is underwritten on the useful life it’ll have left at the end of the term, so it can get a shorter term than the same piece new.
Plan on 10% to 15% down on used equipment from a dealer and 15% to 25% on a private-party sale. Tables and decompression systems finance readily used. Lasers and imaging depend on manufacturer support, and on a laser we’ll look at diode hours too.
Buying the equipment out of a retiring DC’s office usually goes on an EFA. We run a lien search on the seller and pay the seller directly once everything checks out. Our guide to used chiropractic equipment financing covers what to check on a used laser or decompression system.
Can a startup chiropractic practice lease or finance equipment?
Yes, selectively, and the file matters more than the structure. Five West considers new practices and startups on both. A startup file usually needs personal credit of 700 or higher, verifiable clinical experience, working capital left after the purchase and, on most files, a down payment. A startup lease asks for the same stronger credit.
The application-only limit is also lower under two years in business, so a first office with X-ray is more likely to need a few documents. I’d keep the first purchase simple: tables, modalities and the imaging you need on day one, each on the structure that matches how long you’ll keep it. Our startup equipment financing guide covers what a first-time file needs.
How do taxes differ between leasing and financing?
The structure decides who’s treated as the owner, and the owner is the one who depreciates the equipment.
The IRS generally treats an agreement as a purchase when, among other signs, you get title after the payments or can buy the equipment for a nominal price. So an EFA or a $1 buyout lease is generally treated like a purchase: you depreciate the equipment, and that can include Section 179 if it qualifies. On a true FMV lease, the funder owns the equipment and you generally deduct the payments as rent. A 10% option is usually treated as a purchase too, but it depends on the contract.
Section 179 has its own conditions, including more than 50% business use, the year the equipment is placed in service and a cap at your taxable business income. Our guide to Section 179 for chiropractors goes through the limits.
None of this promises a deduction. Ask your CPA how your specific agreement is treated before you sign, especially in a year when income is light.
How do you decide whether to lease or finance?
Answer these for each piece, not for the office as a whole:
- Will you still use it after the last payment? Own it.
- Will a newer model make yours hard to sell in four or five years? Price a 10% or FMV lease.
- Do you need the lowest payment this year? A 10% or FMV lease keeps it lower.
- Do you want the choice to hand it back? An FMV lease is built for that.
- Are you buying it out of a retiring DC’s office? That usually goes on an EFA.
- Does your CPA want the deduction this year or spread over the term? Ask before you sign.
If the answers point different ways for different pieces, that’s normal. Mixing them means two agreements, one financed and one leased, since one agreement can’t hold both. Our usual $15,000 minimum counts the whole bundle together, so each agreement doesn’t have to clear it on its own. We write all four structures, so we’ve got no reason to push one. Try both in the Quote Builder, then send us the vendor’s quote and we’ll price it for real.
Frequently asked questions
Can you lease chiropractic equipment?
Yes. Five West leases chiropractic equipment for 24 to 60 months, with a $1, 10% or fair market value buyout chosen up front. New, used and refurbished equipment can all be leased.
Is it better to lease or finance a chiropractic table?
Most practices are better off owning tables. A good adjusting table stays in service for ten years or more and holds its value, so an equipment finance agreement or a $1 buyout lease usually fits.
Should I lease a Class IV laser?
Often, yes. The technology changes faster than tables do, so a 10% option or fair market value lease gives you a lower payment and a way to move to a newer unit, including mid-term on a qualifying lease.
What happens at the end of a fair market value lease?
You can buy the equipment at market value, roll into newer equipment, or return it and owe nothing further on it. Check the notice window and the return conditions before you sign.
Can a new chiropractic practice lease equipment?
Selectively, yes. Startups are considered for leases and equipment finance agreements, usually with personal credit of 700 or higher, verifiable clinical experience, working capital left after the purchase and a down payment on most files.
Are lease payments on chiropractic equipment tax deductible?
On a true fair market value lease, the payments are generally deducted as rent. On an equipment finance agreement or a $1 buyout lease, you’re generally treated as the owner and depreciate the equipment instead. Your CPA should confirm the treatment of your agreement.
How long can you finance chiropractic equipment?
Equipment finance agreements on chiropractic equipment run 24 to 72 months, and leases run 24 to 60 months. Used equipment is underwritten on its remaining useful life, so it may get a shorter term.
Price both structures on your own equipment.
Most applications get a first response within 1 to 2 business hours. One short application gets you a dedicated funding professional who prices both structures side by side.
This article is general information about equipment financing, not tax, legal or accounting advice or a commitment to finance. Example payments are estimates for an established business with no money down; actual terms and payments depend on credit approval, the equipment and the structure. All financing is subject to credit approval and underwriting.