If you are a dentist looking to upgrade your equipment or diversify your treatment services, financial assistance may be needed. Dental and medical equipment can be costly, especially when a lot of it needs to be updated at once — so what are your financial options?
With experience equipping and fitting out dental practices of all shapes and sizes, the team at Dentec has received that question many times. We understand the high costs associated with running and expanding dental practices. That's why we decided to outline potential financing solutions all in one place.
In this article, we explore the various ways to get financing for your upgraded dental equipment so you can better meet your patients’ needs.
How to finance new dental equipment
1. Internal funds
It may seem obvious but raising funds within your business should be the first step. Even if you don’t have enough for the entire purchase, using as much as you can from internal funds is cheaper than borrowing from a third-party lender. In other words, increase revenue, decrease expenses, and manage cash flow. Every little bit helps.
Essentially, the less you have to borrow, the more you will save long-term. So take the time to investigate whether you can free up any extra cash for the investment in new equipment.
2. Getting a business loan from the bank
If freeing up internal funds isn't an option, or only partially covers the investment, your next option may be to consider a business loan from the bank. The obvious downside to this is interest charges — although this will be a tax-deductible expense.
However, interest charges aren't the only challenge with bank loans. There are a few other challenges you might like to consider with this option.
Challenges with obtaining a business loan
Other downsides to bank loans include longer processing times and difficulty obtaining approval. This can be particularly troublesome for new dental practices as banks need security before they can invest. In these cases, you will need to provide a credit history and potentially other collateral such as personal property.
Furthermore, obtaining a second loan can be difficult if you have already incurred debt.
Consequently, if you plan to obtain financing from a bank, it pays to prepare proof that your practice is a sound investment. This means supplying a thorough business plan outlining the full amount of money you require. As well as your business goals, how you intend to spend the loan, and how you will meet repayments.
3. Specialist dental financing
Your third option for financing is using a specialist healthcare lender that is tailored to the dental sector. These lenders are well-versed in the industry and will understand your requirements much better than a generic bank.
DLL Financial Solutions
For example, DLL is a financial solutions partner that provides commercial, retail, and used equipment financing. They are the leading vendor finance partner worldwide, with expertise in several sectors, including healthcare. Having funded healthcare providers for over 30 years, DLL knows how dental practices operate — and how vital it is to have access to innovative tools and treatments.
At Dentec, we partner with DLL to obtain financing for our clients because we are confident of their expertise in the healthcare market. From a small equipment replacement to a completely redesigned fitout, DLL funding can make it possible.
Financial support for dental practice fitouts
While we've focused mainly on finance for the investment in new dental equipment, much of this information also applies to financing for a complete fitout of your new or existing dental practice. When working with Dentec, you can be confident that we can work to meet your budget, as well as support you in obtaining financial support for your dental practice.
Here's an overview of what the process of working with Dentec looks like:
Initial consultation
The first step of our process involves our team consulting with you to explore and assess your needs as well as your budget.
If you're looking for new equipment, we'll walk you through the options in our wide range of brands and configurations. In the case that you're wanting a complete overhaul or a fresh start, this consultation allows us to get to work developing an effective plan.
Projection of the budget
Once we know what you need, we can provide you with the most appropriate solutions. For a full fitout, this means initial concept design and project proposal, including:
- A detailed expense estimate,
- Scope of works,
- Risk assessment,
- And an overarching project timeline.
From here, you will have a foundation to plan and apply for financing. If you prefer a hands-off approach, we can arrange it for you with DLL.
Budget alignment
Once the technical drawings of your fitout are complete, we can begin. Firstly, we will complete detailed quantity surveying to ensure that costs are accurate and controlled. At this point, we will provide you with a firm price and contract for the project.
There you have it, three different ways you can finance the investment in your dental practice — we hope this information was helpful but if you have any further questions don't hesitate to reach out to our team.
We can share industry insights, reputable manufacturers, and financial advice to make this step as effortless as possible. This way, you can invest in the equipment you need to provide quality dental services to your patients.
