Securing £100,000 Funding for Orthodontist
To enable a dentist to offer payment plans
Payment plans can encourage patients to take up treatments, but you need to ensure they don't cause cashflow headaches for your practice.
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Many dental professionals are discovering the potential of new treatments.
Patients are looking for the perfect smile, and coming in for advanced orthodontic work that is now possible. It means an important new income stream for dental professionals - if patients can afford the costs of the work required.
One solution is to offer patients payment plans that can spread the cost of extensive work over several years - but unless this is arranged on a professional basis, it can mean cashflow problems for the practices involved.
We recently provided £100,000 funding to help an orthodontist offering an important new treatment secure the cashflow which would allow her practice to offer this kind of service.
The challenge the orthodontist faced
Our client was a south London orthodontist with an established practice. She had adopted a particularly effective new technique which could offer remarkable results with straightening and levelling teeth.
“Having the perfect smile is becoming more and more important for my clients. TV and magazines are showing men and women with Hollywood perfect teeth, and my patients are always delighted when I explain how we can get the same results for them. But of course, perfection does not come cheap.”
Our client was offering a full treatment package that in many cases could cost in excess of £5,000. She explained that her patients were often happy to pay it to achieve the look they wanted - but that actually finding the cash required could be a problem.
“My clients might be ordinary people and that kind of cost would be difficult for them to arrange - even if it is an investment in their appearance. So the logical thing for me to do is offer the treatment they need with a payment plan.”
The cost of a typical treatment might be in the region of £5000 and take two or three months to complete. The dentist would come to an arrangement with patients to spread the cost over up to five years.
“It made sense for my patients, because they could then afford to have the work done. It made sense for my practice too, because it meant more treatments were being performed - but it was too successful. I found that I had around £400,000 owed to me. My cashflow was suffering with every new treatment I did.”
Having £400,000 of debt on the books was causing a serious problem for the practice. Although the business was busy, cashflow was simply not adequate and lenders were becoming wary of lending to a business that they could see as being potentially unsound.
“We needed the cash fast - but I was wary of a long term commitment that would simply make matters worse. What I really wanted was a cash injection of £100,000 to solve our cashflow problems - with the facility to make early repayments if - as I hoped - client payments started coming in on schedule. It seemed like a lot to ask, but Rangewell we happy to look at it.”
How Rangewell helped
We found a specialist lender who could offer the £100,000 at an attractive rate of 7.9% over 5 years on a capital and interest unsecured basis.
We explained the reasons behind the cashflow issues, and why the business was actually highly profitable, and why it had excellent prospects for the future if the current cash flow issues could be solved with a cash injection.
We were able to find a lender who understood the sector, and were able to explain why our client was actually the ideal candidate for lending.
The funding Rangewell arranged
£100,000 at 7.9% over 5 years
Monthly £2,009.86 or Annually £24,108
Total cost for loan £20,591.86
We were able to get the loan agreed, and once agreed, were able to get the funds into our clients account within 4 working days. She was able to deal with her immediate cashflow needs - and has now asked us to provide a refinance plan for her entire practice.
At Rangewell, we can help orthodontists and other dental professionals find answers to all their funding needs. Our dedicated team can 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 for loans, asset finance, commercial mortgage, or any other kind of finance.
Our service is independent, fast and absolutely free.