What you need to know about financing dental equipmentPublished on 20th May 2019 2019-05-20T11:00:00+00:00
Across the industry, the speed at which dental technology is advancing is phenomenal. Yet although this is great news for anyone seeking dental services, making sure that your practice is able to keep up and remain competitive isn’t easy. To ensure that you’re able to provide the services and the quality of care that both your existing and prospective clients demand, investing in the latest dental equipment is an absolute must. You may have considered drawing funds from your own savings but this could result in adding too much pressure to your practice' finances, especially when it comes to managing your operating costs alongside. That’s why more and more dental practices are choosing to invest in the latest technological advancements with the help and support of Asset Finance. Asset Finance presents you with a variety of ways to acquire the equipment your practice needs to stay ahead of the local competition. So what do you need to know about financing dental equipment?
How can financing dental equipment help your practice?
When it comes to acquiring equipment, there are many dental practitioners who still aren’t aware of the wide range of funding opportunities that are available to them. They approach the idea of financing equipment with skepticism, believing that it may not be suitable for their current business model or that adverse credit could hinder their ability to qualify. In truth, it is quite the opposite. With the ever-growing prominence of the Alternative Finance industry, your practice has many finance solutions to choose from, including Hire Purchase, Leasing and Asset Refinance. As such, if you’re looking to acquire anything - from dental chairs, X-ray machines, digital imaging systems, surgery units and bone fixation kits to sterilization tools - Asset Finance presents your practice with the means to either purchase or rent dental equipment. Plus, you can even refinance your unencumbered assets (equipment, machinery or vehicles) and release the equity that they contain, allowing you to support upfront purchases and other essential projects. Therefore, you’re now able to develop a service that your clients can trust, leading to a reliable income and a sustainable future.
How does your practice qualify for dental equipment finance?
Despite some dental practitioners approaching this pathway with caution, financing dental equipment isn’t as intimidating as it may seem. Take a closer look and you may be pleasantly surprised. Lenders often like to gain an in-depth understanding of your practice before deciding whether to offer you an agreement and don’t make judgments based solely on your credit score, though it will affect how much interest is applied. Although lenders often asks to review your credit profile, they do factor in other aspects, such as financial performance and the reliability of your monthly revenue. Nevertheless, they are likely to check whether you have past or outstanding CCJs, Accelerated Payment Notices (APNs), arrears, debt and your history of resolving debt on time. Therefore, if you can demonstrate that your practice can afford to finance dental equipment, you could qualify for an agreement.
What do you need to qualify for dental equipment finance?
Along with your personal and business credit profile, lenders will want to review the reliability of your monthly revenue and whether you have a steady stream of return patients to back it up. To do so, you’ll need to present such documents as recent and past bank statements, Profit and Loss statements, cash flow forecasts and sales reports. If you are thinking of refinancing an asset in your possession in order to release equity, you’ll also need to provide collateral documentation and grant permission for an inspection to be carried out. As such, agreements are typically presented based on whether you can prove that your practice has the capability to make the relevant payments each month, even with an adverse credit rating. Plus, if you’re able to bring together the relevant documents beforehand, this will speed up the application process and allow your practice to gain the equipment it needs sooner.
Need more dental equipment for your practice?
Making sure that your dental practice contains the latest tools and technology can be difficult, especially when you factor in how much it will all cost. Although it can be tempting, the strain of drawing funds from your own savings could be too much for your finances to handle. However, there’s another way in which you can acquire all the equipment your practice requires to operate and live up to client expectations. So whether you need dental equipment on a permanent or temporary basis, Asset Finance could enable you to achieve your goals. All you need to do now is source an agreement which is appropriate for your practice. So, if you are looking to obtain more dental equipment but can’t afford the outright expense, apply for an Asset Finance agreement today of find out more with Rangewell.
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