The Truth about Dental Equipment Financing

If you're looking on the internet from information about dental equipment financing, you may have noticed something:

Talking to financing companies...yeah

...about as much fun as a root canal, right?

They make it sound so easy and affordable...

(until you get the contract and actually read it....)

For easy and affordable rates and terms, you don't even need a financing company.

That's because equipment sellers probably offer zero-cost financing or something similar. 

Special bonus: At any time, to get a quote to finance your dental equipment, scroll back up and click here. 

Why do Companies Lie about How Much Dental Equipment Leasing Costs?

You've probably had patients come into your office whose teeth are rotting out of their head, where the whole once-a-week oral care plan hasn't worked out so well for them.

Then once you advise them what it will cost to fix their mouth, they act like you are trying to steal from them.

As you look around your office, at the thousands of dollars worth of equipment, at the payments you might be making for your x ray machine and the overhead for your office and staff you might wonder:

Would you believe that finance works just like any other business?

Maybe you've seen the results of a botched $79 crown from just over the border once or twice?  

Just like you might have patients coming to you to fix the damage that was done when someone tries to get dental care for less than dental care should cost...

...all day long we hear stories of what happens to folks who were unrealistic about what payments should be for dental equipment leasing and sometimes the results look like this:

It can be frustrating for dental equipment leasing companies to lose business when someone thinks they should do business for less than it costs to run their business....

So some financiers (unfortunately) default to bait-and-switch tactics -

Click here for an non-BS estimate of what your terms might be

This is unfortunate - but how about we share with you what rates really are when you lease or finance dental equipment?

What are Dental Equipment Finance Rates?

If you've got good credit, and the equipment you're buying is new - usually you're going to take the cheap in-house financing.

Oh, and they'll be upfront with you about the rates, since those rates are pretty good.

When your credit is pretty good, there are usually only three reasons you'd need to shop for financing:

Reason #1:  You're buying used equipment

Reason #2: Your practice is less than 2 years old

Reason #3: Your seller lives in a cave and doesn't offer financing

Let's go over these:

If you're buying used equipment, most of the time medical equipment "in-house" financing is unavailable.

If so, the rates aren't "dirt cheap" but they are reasonable.

Often times, in these situations, you can do a contract that has rates comparable to a bank loan - around 6-8% per year - but with better service, less restrictions, and the ability to be structured in a way that will save you big on taxes.

The other situation is if you're brand new in business (but have great credit) - there are special risks for new practices, so the rates will be higher. However, assuming you didn't start your practice the week after you got your diploma...

Dental professionals have special treatment in the financing world.

Even if you've just started your practice, while startups are often offered very high rates, in most cases for a dentist time in business can be calculated from the day you received your license.

This helps your rates tremendously - you might end up paying $550-$575 per month per $25,000 in financing (versus $800 or more for a non-medical startup) assuming a 60 month term.

Can You Finance Dental Equipment Without Perfect Credit?

Often times, the reason dentists shop the internet for equipment financing or leasing is that they don't qualify for in-house rates with their equipment seller (most require credit score of 720 or above).

In these cases it depends:

With a 650+ credit score, in most cases, you won't have any problems, and the costs will often run in that same $550-$575 per month we spoke of for startups (for each $25k in financing).

As credit drops below 650, approvals are not quite as easy to come by (but usually not impossible).

There are a huge variety of programs available, so it would be impossible to cover every scenario, but here are a couple of easy ones:

1. Regardless of your credit score, if your monthly billing is at least equal to the cost of the equipment you are purchasing, in most cases you can be approved - rates will be higher and terms will be shorter. For a comparable example, $25k over 3 years (as opposed to 5) might run $1,175 a month or so.

2. With at least a 625 credit score, payments on that same $25k over 3 years might run $1,100 or so.  

In general, approvals are available with bad credit, but you have to show some capacity to be able to pay (such as good revenues or assets) - every situation is different but in the majority of cases, there is a way to make the deal work for you.

Do you need to finance your dental equipment purchase? Call us at (866) 631-9996 or click on the image below.