Dental equipment supplier equipment financing can be required for the dental supplier’s own inventory that they are requiring from a manufacturer or another distributor for the purposes of resale, and it can be required by the dental supplier’s customer who wants to purchase equipment from the supplier but will require equipment financing to complete the transaction.
There are different forms of inventory financing available, each with certain attributes with respect to rates and leverage provided.
For instance if a dental supplier has a line of credit through bank to financing inventory, they will have a low cost of financing, but the percentage of the asset value to be financed is going to be very small.
Asset based lenders will provide higher amounts of financing relative to the cost of the supplier’s inventory, but the cost of funds will also be higher in keeping with the higher level of lender risk.
The key to making higher ratio inventory financing cost effective is the amount of times you can turnover your inventory during the course of a year. The more turns, the lower the average cost of financing becomes.
Its also difficult to get dental supplier equipment inventory financing facilities for amounts under $200,000.
The other type of dental supplier equipment financing is financing that is arranged for the customer by a third party financing company that has qualified the dental supplier as a reputable supplier of equipment to this industry.
Being prequalified as a supplier with key equipment financing companies all transactions that are subject to financing to be reviewed and committed quickly, making this a key step in the successful completion of a sale transaction.
When the dental equipment supplier has an established relationship with a third party lender or leasing company, the signed sale transaction can be sent, with the customer’s permissions, directly from the supplier to the equipment financing company so that everything the customer requires to complete the sale can be handled within one process.
By not allowing or requiring the customer to go out and source his or her own source of dental equipment financing, the dental supplier has a much tighter sales process that will be less susceptible to competitive pressures which can discount or even lose the deal for the supplier.
Depending on the dental equipment supplier, both types of financing are going to be important and need to be in place and functioning properly for optimal results.
Dental equipment financing is available to Canadian based dental practices for a large variety of equipment. Here is a small list of some of the more common items that are financed on a regular basis by Canadian equipment financing and leasing companies:
Electric dental chair, hydraulic dental chair, hydraulic press, acryliser, electric craver, dental lathe, plaster dispenser, electro polisher, vacuum mixer, palatial trimmer, arch trimmer, hydraulic dental press, dental polishing equipment, dental cleaning equipment, dental chair, dental ultrasonic scaler, dental lab equipment, dental curing light, adstra imaging software, cart delivery system, dental compressor, cuspidor, vacuum arm system, dental cabinetry, dental cabinets, mobile dental cabinets, dental stool, dent-x 3d imaging, dental instrument washer, dental lighting system, mobile dental clinic, mobile x-ray unit, nitrous oxide dispenser, portable dental equipment, dental operatory equipment, x-ray panoramic, x-ray intraoral, dental practice management software, dental charting software, precision microscope, sterilizer, air abrasion system, air polisher, amalgamator, amalgam removal system, apex locator, conscious sedation monitoring system, defibrillation, digital x-ray film reader, electrosurgery equipment, hand piece cleaning system, lubrication system, high speed hand piece, low speed hand piece, needle free injector, oxygen resuscitation unit, pulse oximetry, teeth whitening equipment, ultrasonic cleaning unit, dental waste management equipment.
If you are looking to acquire an asset that is not listed above, please give us a call so that we can get it qualified by a lender or leasing company.
Dental equipment financing provides some of the lowest cost borrowing and leasing rates of any equipment offered for sale in any industry. This is largely due to the financial stability associated with most dental practices and the very low levels of borrower or lessor default experienced by lenders and leases.
Because the estimated medical industry financing risk is viewed to be very low, financing companies want to lend as much money to dentists and dental practices as possible. In order to accomplish this, lenders and leasing companies will finance leasehold improvements that would not otherwise be possible in most other industries unless the financing was provided through a government insured equipment financing program.
The benefits to the owners and managers of dental offices are considerable in terms of low interest rates, financing leverage at or near 100% of asset cost, and expanded financing applications such as leaseholds.
Dentistry is one of the few industries where expansion can take place over and over again with very high leverage already in place on the business balance sheet.
If you have a dental equipment financing or leasing need, please give us a call so that we can review your requirements and provide the best options for your consideration.