Funding to update a dental practicePublished on 5th February 2020 2020-02-05T12:00:00+00:00 - Last update on 10th February 2020 2020-02-10T00:28:55+00:00
£10,000 funding to buy a chair
Dental equipment is becoming steadily more expensive as the technology behind it is becoming ever more sophisticated. Virtually every device in your consulting room is now based on advanced technology - and has a correspondingly high cost.
This means that the traditional high-cost items - your chairs and drills - are now only the beginning of the costs you face. Dental lasers, digital x-rays and photography combined with 3D modelling, and digital impression systems that replace putty are all becoming mainstream solutions. You simply cannot afford not to have them if you are to give your patients the standard of treatments they deserve.
Asset Funding solutions can often provide the most cost-effective solutions to help you provide the equipment you need and includes solutions to let you buy outright or lease items of all kinds.
We were recently approached by a Malvern dentist who had recently bought a practice from a retiring owner. He had negotiated on the basis that the practice was equipped with instruments that had seen better days. He planned on a steady programme of replacement, but he realised that his chair, in particular, was becoming a liability.
“Not only It was looking old-fashioned and worn - which worried patients and sent the wrong message about my practice - it was starting to worry me. I could feel that there was a lot of wear in the mechanism. I could not run the risk of something happening with a patient in it.”
With a new practice to establish, money was short, and he looked at ways to keep the cost of replacing the chair under control. He found a reconditioned chair at a dental equipment dealer for £10,000, which represented a real saving on the cost of a new chair.
He wanted to spread the cost with Hire Purchase.
However, he was concerned that the finance plan offered by the dealer - with an interest rate of 12% - was expensive.
He turned to our dental finance team at Rangewell.
Asset Finance and your dental practice
Asset Funding can be the most cost-effective way to provide funding for equipment of all types.
It differs from a conventional loan in one simple respect. The security for the loan is provided by the equipment itself. This means that the risk to the lender is reduced - if your business is unable to repay the funding, the lender can simply repossess the equipment and sell it. As a result, the costs to you as a borrower may be reduced.
With Hire Purchase, you effectively hire your dental equipment until you’ve paid enough to purchase it. You’ll normally pay a deposit plus fixed monthly repayments. When you’ve made all the repayments, your business will own the equipment outright. This can be ideal for durable items that you will want for the long-term.
Leasing gives you flexibility. You can regularly update equipment to ensure you always work with cutting-edge technology such as laser whitening. In some leasing arrangements, you have the option to own the asset at the end of the term, upgrade it, or simply give it back. You can also decide whether you want maintenance and insurance to be included and whether you need the item for its whole working life or a shorter, agreed period.
Asset Finance can also provide funding for used dental equipment. This can be especially useful if you are setting up a practice, or whenever funds are tight - as it can help you secure viral equipment t a bargain price.
There are many lenders providing Asset Finance. Rangewell’s expertise can help secure the most competitive rates - frequently undercutting those offered by equipment dealers.
Rangewell found a specialist in the medical equipment sector which could provide the £10,000 funding at a preferential rate of 6% above base rate over 4 years.
The funding Rangewell arranged:
£10,000 at 6%
Total cost for loan £ 2,808
* As of September 2019
The process was simple and - because we were able to approach lending specialists at who understood the dental sector - it was arranged in the minimum time.
At Rangewell, we can help dental professionals find better answers to all their funding needs. Our expert teams find the most appropriate funding solutions while our network of lender contacts and our unique online tool let us find the most cost-effective rates.
Our service is independent, fast and absolutely free. Simply contact our Dental Finance team.
Share this article
Discover your range of finance. Every type of finance for every type of business.
Our goal is very simple - to help businesses find the right type of finance as quickly, transparently and painlessly as possible.Find Funding