Financing Dental Equipment for Your Practice
If you’re the owner of a dental practice, you know obtaining the right equipment is a critical component to the success of your business.X-ray machines, dental chairs, and milling machines are only a few of the high-cost items you rely on to provide care for your patients.
While this technology and equipment is necessary, the price point can disrupt cash flow and be burdensome for many doctors. Fortunately, dental equipment financing can help. Whether you are a new doctor just starting your practice or you’ve been established for many years, financing your dental equipment could help put your business in a better position to succeed. With the help of Ben Collier, Senior Vice President of Private Banking at SouthState Bank, we’ve put together a quick overview on what you need to know about financing equipment for your dental practice.
How new dental equipment can help you grow your businessYou will need reliable equipment – that is an inevitable aspect to the success of your practice. As technology is constantly progressing, it can be challenging to keep up with the innovation of equipment in the dental industry. However, top-of-the-line tools and technology can help keep your practice relevant and competitive in the marketplace. You can provide your patients with the most efficient treatment, a broader range of services, and facilitate streamlined operations on the administration front.
How do I qualify and apply for equipment financing?Most practice owners can qualify for a dental equipment loan, but the interest rates and terms you receive will vary depending on the type of equipment, your business financials, credit score, and the lender you finance through. Interest rates for equipment financing typically range from 5 to 30 percent, depending on the lender.
While it may be quicker to finance through an equipment company or online lender, the interest rate will almost certainly be higher. Bank loans might require more time to get financing, but they are still relatively quick and can save you thousands of dollars in interest fees. SouthState requires minimal information to apply for the loan and you can usually finance 100% of the cost of the equipment.
Financing dental equipment comes in the form of two options: leases and loans. Both options have their advantages, and the ‘best’ solution is largely dependent on your business goals. Leasing dental equipment means you pay a monthly fee to rent your equipment over a set period of time, where a loan would provide you an up-front lump sum of money to purchase the equipment.
Choosing between leasing or purchasing equipment
Leasing is less of a commitment and costs less up-front, but buying equipment can save you money long-term and add value to your practice. Additionally, purchasing equipment might provide tax benefits that leasing does not.
Why you should consider dental equipment financing with SouthStateDeveloping a relationship with an experienced, knowledgeable banker is a partnership your practice will benefit from throughout the life of your business. When an expansion or acquisition opportunity arises, you need a trusted partner to guide you when you need it most, offering best-in-class service every step of the way. We do the research and structure a loan best fit for your unique needs, so you can focus on what matters most: your patients.
If you qualify, the terms are flexible and up to 10 years, with competitive interest rates. The application process is generally quick, requiring minimal information, and funds can be delivered in less than two weeks. Our bankers are dedicated to helping you navigate the equipment financing process and will work to find the solution best fit for you and your practice.