Dental Equipment Financing: What You Need To Know
You’ve likely heard of equipment financing before, but you may not know exactly what it is or how it can benefit your business. Equipment financing is a type of borrowing that allows you to purchase the dental equipment your business needs without having to pay for it all upfront. There are many benefits to equipment financing, including the ability to get the latest and greatest dental technology and equipment, as well as the tax advantages that come with it. But there are also a few things you should be aware of before you sign on the dotted line. In this blog post, we’ll explore everything you need to know about dental equipment financing so that you can make the best decision for your business.
What is Dental Equipment Financing?
If you’re looking to finance dental equipment, there are a few things you need to know. First and foremost, it’s important to understand that dental equipment can be expensive – and the price tag can quickly add up.
That’s why many dentists choose to finance their dental equipment, so they can spread out the cost over time. This way, they can make smaller monthly payments instead of one large upfront payment.
There are a few different options when it comes to financing dental equipment. One option is to take out a loan from a bank or other financial institution. Another option is to lease the equipment, which means you make monthly payments but don’t own the equipment outright.
No matter which route you choose, it’s important to compare interest rates and terms before making a decision. You’ll also want to make sure you have a budget in mind so you don’t end up spending more than you can afford.
If you take the time to do your research and shop around, you should be able to find the best financing option like Trust Capital equipment financing company for your needs. And once you have your dental equipment financed, you can focus on providing great care for your patients!
How Does Dental Equipment Financing Work?
There are a few different ways that dental equipment financing can work. The most common way is for the dental practice to take out a loan to purchase the equipment. The loan is then paid back over time, with interest.
Another way that dental equipment financing can work is for the dental practice to lease the equipment. This means that the dental practice pays for the use of the equipment, but does not actually own it. At the end of the lease, the dental practice can either purchase the equipment or return it.
Finally, some dental practices may choose to finance their equipment through a line of credit. This means that they borrow money against their future income and pay it back over time, with interest.
No matter which method of financing you choose, You will also want to make sure that you read and understand all of the terms and conditions before signing any paperwork.
Here are the dental appliance financing options you should choose from.
When it comes to dental equipment, leasing companies may offer you a variety of options. For example, they may offer $1-buy-out leases, 10% PUTs (periodic-utility-demand) leases, or even simple equipment finance agreements where you stay in control as the owner and just make monthly payments back to the bank
with section 179 tax . The equipment finance agreement usually comes with good early prepayment options.
$1 Buy-Out Lease- $1 Buy-Out Lease also known as a capital lease, this allows the company to lease the equipment for a set period of time and then buy it outright at the end of the lease for $1. The monthly payments for this lease are likely higher than other leases, but it comes with a $1 buy-out at the end of the lease, so companies may spend less money long-term.
FMV Lease – FMV is also known as operating lease. Operating leases are a popular option for businesses that need to lease equipment for a predetermined amount of time. This type of lease offers a few end-of-lease options, including continuing to lease the equipment, returning the current equipment and upgrading, or buying the equipment at its Fair Market Value.
10% PUT Lease- This type of lease requires payment of 10% of the purchase price at the termination of the lease. The financing amount is 90% of the total cost of the equipment. At the end of the terms, the company has a chance to buy the equipment outright for the final 10%.
EFA – Equipment Finance Agreements combine lease and loan terms in one financial agreement, but the finance company does not put collateral on everything your business owns like a bank loan would do. At the end of the agreed-upon term, you get full ownership and title of the equipment. Equipment Finance Agreements are a basic way to acquire dental equipment financing.
Who is Eligible for Dental Equipment Financing?
There are a few different types of dental equipment financing, and each one has its own eligibility requirements. For example, leasing dental equipment usually requires that the lessee have good credit and a steady income. Similarly, loans for dental equipment tend to have stricter requirements than loans for other sorts of business equipment.
That means, there are also a number of financing options available for those with less-than-perfect credit or who don’t have any collateral. For instance, many dentists opt for practice financing, which is essentially a loan that’s used to cover the costs of starting or expanding a dental practice. In most cases, practice financing is easier to obtain than traditional small business loans because the lender can use the dental practice itself as collateral.
What Types of Equipment are Eligible for a Loan?
If you're looking to finance dental equipment, you'll want to know what types of equipment are eligible for a loan. The good news is that most dental equipment is eligible for financing, including:
-Computers and software
To get started, simply fill out a loan application through Trust Capital because its your desired lender. Be sure to include information on the type of equipment you're looking to finance, as well as the estimated cost. Once your application is approved, you'll be able to choose from a variety of financing options that best fit your needs.
There are a few things to keep in mind when financing dental equipment. First, be sure to read all the terms and conditions about the financing before signing on the dotted line. Second, make sure you have a solid business plan in place to convince lenders of your ability to repay the loan. And finally, don't forget to factor in the cost of maintenance and repairs into your budget. With careful planning and execution, dental equipment financing can help you get the equipment you need to grow your practice.