Why Do Dentists Finance Their Equipment?

As a business owner, it makes sense to keep your expenses low and, hopefully, your profits high. However, dental practices require a significant amount of capital investments such as expensive equipment and furniture. Dentists require a wide range of technologies to accurately diagnose and treat their patients’ oral health issues. This is why they turn to equipment financing options. In this post, we will discuss why dentists finance their equipment and how it benefits them.

Keep Up with Technological Advancements

Dental technology is advancing at a rapid pace. Equipment finance can help dentists stay up to date with the latest advances. Upgrading equipment frequently allows dentists to stay current with new diagnostic and therapeutic options.

Preserve Cash Flow

Equipment financing frees up business owners’ funds so they can invest elsewhere in their business. This includes marketing, recruitment, employee training, and office expansion. This allows a business owner to keep their cash flow balanced without compromising the quality of their service.

Flexible Repayment Options

Equipment financing offers favourable terms, such as flexible repayment options, to dental practices. Practitioners can choose a repayment period ranging from one to seven years, and they can settle the agreement early with no penalties.

Tax Deductions

Most practices finance their equipment on a hire purchase agreement. Under terms of a hire purchase agreement, practices take advantage of 100% first year allowances tax relief, deducting the full cost of the equipment from their profits before tax.

Budget-Friendly

Financing dental equipment makes it easier for practitioners to budget for future expenses, as they know exactly how much they will need to pay each month. They can set aside a specific amount for equipment financing each month as the interest rate is locked in throughout the term of the agreement.

Conclusion

In summary, equipment financing is a sensible investment for dental practices. Enabling dentists to keep up with technological advancements, preserve company cash flow, offer flexible repayment options, and benefit from tax savings creates a cost-effective, long-term solution plus many other benefits. When you partner with VRW Healthcare Funding, you’ll have a customized payment plan, designed and tailored to suit your budget, making the investment in dental equipment easier and more affordable than ever.