Dental equipment leasing has increasingly become a popular way of reducing the cost of dental care in North America.
Good dental health not only increases oral hygiene but it also improves our overall appearance. A problem in the mouth often indicates that there is something wrong with your health and it needs to be taken care of. There is no denying that the cost of dental health care is increasing and many people are turning to dental insurance policies that cover treatment during routine checkups and emergencies. Unfortunately, dental insurance may not cover all possibilities.
Dentistry has gained enormous benefits from advances in technology so many practices are able to take advantage of enhanced, digitized technology. This advancement in technology has increased the cost of dental equipment. This has made many dental clinics to turn to dental equipment leasing so as to be able to reduce the cost of acquiring dental equipment while still providing the best services to patients.
Benefits Of Dental Equipment Leasing
Leasing dental equipment can give your practice a competitive edge over other practices that don’t. One of the ways that leasing can give you a competitive edge is by giving you the chance to own state-of-the-art equipment. With leasing, you do not have to purchase every piece of equipment upfront; you can pay for it in installments or only pay for its use.
Many lease agreements have a provision that states you can own the equipment after making a certain amount of lease payments or at the end of the lease period. Your lease payments are calculated as down payments towards ownership of the equipment. This provision makes the lease costlier because the lease rates are much higher. Capital leases are typically known to include such provisions.
On the other hand, you can just pay for using the dental equipment and at the end of the lease period you can return the equipment, renew the lease or upgrade your equipment.
Machine upgrades ensure that you are able to perform complex procedures using sophisticated technology and this gives you a higher advantage over other dental practices. In addition, dental equipment leasing allows you to own equipment for a short period of time without necessarily purchasing it.
For example, if you need to acquire a specialized piece of equipment for a few months, rather than make a cash purchase, you can simply lease it and pay for the amount of time that you will be using it. This way, you will have saved money which could go towards other business operations in your practice.
Dental Equipment Leasing Vs. Bank Loans
Bank loans are also another popular way of financing dental equipment but it requires you to have a good credit score. Many banks are hesitant to give out loans to business owners who have low credit scores and they are even more hesitant to give out loans to startups.
You also need to provide collateral which is equivalent in value to the amount of loan you are asking for. In addition, you have to make a down payment of 20% the amount of loan you are asking for. If by some unfortunate circumstances, your practice stops generating profits and you are unable to repay your loan, the bank will sell your property (collateral) to recover their money. Not only will this have a negative impact on your credit score but it will further reduce your chances of qualifying for another bank loan.
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Dental equipment leasing on the other hand does not require you to provide any form of collateral or have a perfect credit score. 98% of businesses are eligible for equipment leasing and some lessors have special programs for companies that have a damaged credit score.
If you are unable to continue making monthly lease payments, the equipment leasing company will simply take back their equipment. This will not have any effect on your credit score.
You can lease all types of dental equipment ranging from X-ray machines to dentist’s furniture. Leasing can reduce the cost of dental care because the dentist won’t have to transfer the high cost of dental equipment to the patients. Dental equipment leasing is therefore given a lot of importance in dentistry.
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