Rangewell

Securing £100,000 Funding for Orthodontist

By Richard Mitchell
Content writer
Published: 6 November 2019 | Last update: 8 December 20211 minute read
Rangewell

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.

Table of Contents

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.

Looking to ease cashflow challenges in your practice?

Talk to one of our Dental Finance experts today

Call us
Schedule
Email

“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.

Funding doesn't have to be complicated

Let Rangewell simplify the process for your practice

Call us
Schedule
Email

You may be interested in...

Rescuing a Failed Dental Practice Sale With the Right ExpertiseCase Study

Rescuing a Failed Dental Practice Sale With the Right Expertise

Selling a dental practice can be a complicated process where many points of failure present themselves. Without ass...

19 January 2022
Navigating the Sale of a Dental Practice to an Established Corporate GroupCase Study

Navigating the Sale of a Dental Practice to an Established Corporate Group

For some dentists who look to maximise their profits, selling to a corporate is the best route - but it requires a speci...

18 January 2022
Avoiding the Pitfalls of Selling a Dental Practice to an AssociateCase Study

Avoiding the Pitfalls of Selling a Dental Practice to an Associate

Many dental practice owners have great relationships with their associates, which naturally lead to conversations if you...

18 January 2022
Dentist Finds An Ideal Buyer After A Period of Selling StruggleCase Study

Dentist Finds An Ideal Buyer After A Period of Selling Struggle

For many dentists looking to sell their businesses, going it alone can be difficult. See how working with a selling agen...

17 January 2022
Tips for Running a Successful Dental Practice

Tips for Running a Successful Dental Practice

Whether you are starting a new dental practice or hoping to grow an existing operation, then this guide will help you to...

12 January 2022
Tips on Writing a Dental Practice Business Plan

Tips on Writing a Dental Practice Business Plan

If you run a dental practice or group of practices, then you’ll know just how difficult the last few years have been. Th...

12 January 2022
Insolvency Advice for Dental Practices

Insolvency Advice for Dental Practices

Dental practices faced unparalleled challenges during the COVID-19 pandemic, placing strain on their income and forcing...

11 January 2022
How to Sell a Dental Practice

How to Sell a Dental Practice

Choosing which type of buyer you’d like to sell to, setting a value and understanding the legal and regulatory req...

10 January 2022

Our service is:

Impartial

Transparent and independent, treating all lenders equally, finding the best deals.

In-depth

Every type of finance for every type of business from the entire market - over 300 lenders.

Personal

Specialist Finance Experts support you every step of the way.

Free

We make no charge of any kind when we help you find the loan you need.