Lease Equipment

One of the most serious obstacles faced by the dentists worldwide is the exorbitant cost of the dental equipment. An average dentist finds it real hard to purchase them. However, there is a way out- dental equipment financing.

Several equipments required by dentists such as dental chairs, dental x-ray, dental tables, billing or accounting software, practice automation, oxygen equipment, etc. are very costly and mostly dentists have no alternative other than to finance them.

Thankfully, there are various agencies that offer financing for the dentists to acquire their equipment. One of the main reasons for this is usually the finance market is well aware and gives due weight to the credentials and credit worthiness of the dental fraternity. These financing institutions pay for both - new and second-hand equipment; and the dentists get numerous advantages out of this.

First and foremost, by financing the equipment, the dentist is able to conserve his/her capital. The money which otherwise would have been spent on the equipment could, now, be uses for inventory, marketing, advertising, personnel or any other such requirement.

Though most of the lenders usually finance 70% to 90% of the cost of the equipment, there are lenders that finance 100% of the equipment and in addition also include the expenditure incurred on installation, consulting, freight and software in the contract.

The financing companies often arrange for the financial approval and do not put the dentist any under obligation to use the financial approval. This benefits the dentist both ways.

Good financing companies do not make the dentist pay any application fee and arrange the financial approvals in very short a time. For example, usually for financing equipments worth $100,000 or less they arrange approvals in less than 24 hours.

Usually, a financial company makes a lot of purchases from the supplier. This puts the financing company in a far better position to bargain/negotiate by leveraging this buying power with the supplier. This enables them get the best bargain for the dentist. In addition, they also have experienced personnel to carry out the related paperwork and the dentist is required to just sign it. This way the dentist also saves a lot of time which is a precious commodity for someone starting a new practice.

Certain financiers have deals which help the dentist put some of the equipment as expense item for the purpose of income tax calculation. This ultimately helps the dentist make substantial savings on tax.

However, before finalizing a contract on dental equipment financing with the lending agency, a dentist would have to be wary of the terms and conditions offered by the agency- they should go through the contract document carefully and even try to read between the lines.