£250,000 Asset Funding for less than the leading lender in the fieldPublished on 8th December 2019 2019-12-08T12:00:00+00:00
Equipping a dental surgery is costly - and the costs are rising. The traditional high-cost items, chairs and drills, have been joined by dental lasers, digital x-rays and photography. Practices need to offer them to remain competitive - and to offer clients the highest standards of care.
The high costs mean that finding the most cost-effective way to provide this growing list of equipment can be essential for the financial success of a practice. Asset Funding solutions - including Hire Purchase and leases - can be the most cost-effective way to provide this equipment, and have become standard in the industry.
Asset Finance covers a number of financial solutions, which can be used in a number of ways. For example, many dentists use Hire Purchase to spread the repayments for high value items over up to five years. This can be ideal for high-ticket equipment that will go on giving service for many years. The alternative is to use lease agreements to avoid capital expenditure altogether. This may be more suitable for technology items which will quickly become obsolete, and which will need to be replaced when an alternative becomes available.
Asset Funding is particularly effective because it allows loans or leases to be secured on the asset or equipment itself. This means that lenders have the right to take the asset if payments are not maintained - but, on the plus side, they can reduce costs compared with conventional business loans.
However, there are many Asset Funding providers in the market, and the difference between the lowest and highest rates offered can be substantial.
Getting the right Asset Finance deal for the equipment a practice depends on can be vital to keep costs down.
A Bradford dentist recently approached us to arrange £250,000 worth of Asset Funding. He already had a funding provider in place which he had worked with for years, but he was concerned that the deal he had been offered might not be as competitive as it appeared.
Getting the most appropriate and cost-effective deal was vital. He was embarking on a programme of growth, with an entire second chair to equip. He realised that shaving a few percentage points off the rates required for a Hire Purchase agreement would mean savings for his practice each month - and that it might be worth shopping around. As a dental professional, he knew that many lenders would be happy to lend to his business. But he also knew that finding the most competitive deal across the entire market takes time and contacts which he did not have.
He turned to us at Rangewell as experts in business funding to help him find the deal he was looking for - a deal which might save him money compared with his current Asset Finance provider.
Saving the practice money
He was astonished to find that we could arrange the Asset Finance he needed at rates a full 2% less than his current provider - meaning that his business could save hundreds of pounds in the course of a year.
The savings were very worthwhile, and came as a very pleasant surprise to the dentist. He had believed that, because he had been working with a leading Asset Finance provider with a good reputation in the sector, he would automatically be offered the best rates.
We were able to show him what was possible by spreading the net wider, and using our expertise to negotiate a better deal for the funding required.
At Rangewell, our expertise works for you. We know the lenders who really understand the profession and who can offer the most competitive rates for all types of finance - including Asset Finance solutions.
Coming to Rangewell means getting an expert team working for you and your practice to find the financial answers you need. It means we can help you get the equipment that will provide your practice with a competitive advantage - while reducing the costs you pay.
Our client looked at his spending plans, and realised that his current budget could stretch a little further. He was able to add extra modules to his digital imaging system - which would support him in introducing a cosmetic service - whilst still staying within his original budget.
To find out more about Asset Finance solutions for dentists for yourself, call our Specialist Dental Practice Finance team or take a look at the potential options available.
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