Two different statistics seem to suggest it may be a good time to upgrade or expand your dental practice. The first is the fact that there has been a decline in dental practice ownership—in 2005, just over 25% of dentists under 30 owned a private dental practice but that percentage dropped to 9.5% by 2021. The second is that the dental industry is projected to grow at about the same pace as most occupations—6%—from 2021 to 2031.
The most visible way to enhance your practice is to implement new equipment and upgrade technology to improve the care provided. That necessitates making a financial investment and may lead you to consider seeking equipment financing. Here are the answers to some questions you may have about that.
Why seek equipment financing? As you know, the equipment required to operate a modern dental practice is not cheap. Thus, coming up with the funds to make outright purchases may be out of the question—it can disrupt your cash flow and be a burden you aren’t able to accept.
What are the benefits of equipment financing? The most obvious benefit is that you will be able to procure the latest dental equipment and technology without “breaking the bank.” You may also benefit at tax time by taking advantage of Section 179, a common tax deduction for dentists, especially when implementing new equipment and technology. And then of course there are myriad benefits for your practice:
- Increase your revenue
- Diversify your offerings and types of care you provide
- Attract new patients and retain those you already have
- Improve your efficiency and save time
- Improve your patients’ experience
- Enhance and streamline your operations
How does equipment financing work? It’s actually quite simple. You determine what equipment you want to purchase—3D imaging machines, patient chairs, surgical lights, x-ray machines, computer software and more. You apply for the funds to cover your costs and work with your lender to create a repayment plan that works best for you. You may have several months to 10 years to repay the loan.
Is equipment financing right for my dental practice? It is if you’re at a point in your practice that you need to upgrade your existing equipment or perhaps expand to serve more patients but you don’t have the cash on hand to make outright purchases.
How do I qualify for equipment financing? Each lender will have its own requirements but typically your business financials and credit score will be reviewed along with the type of equipment you wish to obtain. It will also be beneficial to be able to show a history of paying your bills on time and that you have enough savings to cover short-term emergencies.
How do I apply and how long does it take? Again, this will vary by lender, but it’s pretty standard to complete an online application to get the process started. In some cases, you can get same-day approval and have your funds almost immediately.
Whether you are interested in starting a dental practice or you want to upgrade or expand your existing operation, securing financing to purchase the equipment you need is a great strategy to build your business. Unlike traditional lenders like banks, whose application and approval process can be cumbersome and often end up with a “no,” alternative lenders are in your corner and focused on helping you make your business dreams come true.
If you have any questions about how your dental practice can secure equipment financing, give Clear Skies Capital a call at 800-230-9822. We can provide insight into how we have helped other dental professionals find the funds they were looking for.