Investing in advanced dental equipment like CBCT scanners, CAD/CAM systems, or ergonomic chairs can transform your practice. But the price tag often makes dentists pause before upgrading. That’s where dental equipment financing options come in. Choosing the right one can save you money, improve cash flow, and even provide tax benefits.
In this guide, we’ll break down the top five dental equipment financing options and help you decide which is best for your practice.
1. Leasing Dental Equipment
Leasing allows you to use the equipment without owning it outright. Monthly payments are often lower than loan installments, making it easier to manage cash flow. Many leases also cover maintenance, reducing surprise expenses. However, you won’t build equity, and long-term costs may exceed purchasing.
2. Bank Loans
Traditional bank loans provide fixed interest rates and predictable monthly payments. They can be a good option if you have excellent credit and collateral. The downside? Banks often require lengthy approval processes and strict qualifications that can delay your equipment purchase.
3. SBA 7(a) Loans
Small Business Administration (SBA) loans are attractive for dentists planning large investments, especially if you want to finance real estate alongside equipment. These loans usually have lower interest rates and longer repayment terms. However, they involve extensive paperwork and are best suited for equipment purchases over $2 million.
4. Manufacturer Financing
Some dental equipment manufacturers offer in-house financing. This option can be convenient since it comes directly from the source, but interest rates are often higher, and the terms may favor the seller more than the buyer. Always compare with outside financing before committing.
5. IMS Financial Equipment Financing
At IMS Financial we specialize in dental equipment financing solutions tailored to dentists. Our process is faster and more flexible than traditional banks, with financing options up to $500,000. Whether you need working capital, upgraded chairs, or digital technology, we can help you achieve growth without straining your budget.
Tax Benefits of Financing vs. Buying
One major advantage of financing dental equipment is the potential tax savings. Under IRS Section 179, dentists may be able to deduct the full cost of qualifying equipment in the year it is placed into service. This can significantly reduce your taxable income while allowing you to invest in the tools your practice needs.
Final Thoughts
Choosing the right dental equipment financing option depends on your goals, credit profile, and practice size. Leasing might make sense for newer practices managing tight budgets, while SBA loans suit larger, long-term investments. For many dentists, private lenders like IMS Financial offer the ideal balance of speed, flexibility, and affordability.
Ready to explore your options? Contact IMS Financial today to find out how we can help finance the equipment that will take your practice to the next level.
