Have you been thinking about bringing new technology and equipment into your practice? Most of the latest dental tech can help practices perform quality dentistry more efficiently. And it can be a great marketing feature for your practice. But have you also taken a serious look at how you’ll pay for it? Technology is an investment… in time and money. Much of it costs more than most practices can pay out in cash, so you’ll need to finance your purchases. And just about all technology requires time spent in training so that you and your team can get the most out of the investment. Use these seven tips (including Patterson Fall Financing) to help you prepare for financing your new technology purchase and get the most bang for your buck.
1. Ask the right questions.
Every new venture should begin with asking questions. When it comes to a major technology purchase, you should start with yourself and your practice. Is this the right time for us to make this investment? Is my team ready and willing? Then, when you’ve gotten to yes with those answers, it’s easy to reach out to Patterson Financial Services to find vital information. What are the requirements for collateral or co-signers? Are there hidden fees, points, or down payments? Are there any deferred payment options? And what’s the timeframe for approvals? With answers to these questions in hand, you can move forward with your eyes wide open.
2. Take advantage of Section 179
Are there any dentists left who don’t know about the IRS Section 179 tax deduction? Probably not, but it’s still worth repeating. Here’s a quick explanation: As a business, your dental practice can deduct the full purchase price (up to $1 million) of qualifying equipment and software that you purchase or finance during the tax year. Yes, you read that right: If you buy (or lease) a piece of qualifying equipment – a digital radiography system, say – you can deduct the full purchase price from your gross income. Talk to your accountant to learn more about Section 179 and read a full description of it at https://www.section179.org/section_179_deduction/.
3. Explore special offers for small equipment
Rather than plunking down several thousand dollars for a dental laser or new practice management software, keep a lookout for special manufacturer financing options. Some will give you a limited time to pay off the purchase of small equipment at no interest and others offer very low rates. With Patterson, you can even leverage our 90-day Easy Equip program to help spread out the financial burden as you integrate new technology into your practice. When you take advantage of offers like these, you can quickly build your inventory of small equipment and keep your practice humming.
4. Keep onboarding and support in mind
As it turns out, it’s not only about the money. You may have worked out the sweetest financing deal imaginable, but if you’re not getting the support and attention you need to take full advantage of your new purchase, you’re wasting your money…and your team members’ time. Make sure the technology you invest in is backed by a team of experts who will thoroughly train you and your team to use it proficiently. You also want to know that you’ll get the support you need to resolve any issues quickly and efficiently.
5. Know your business financials and statistics
The more you know about the business end of your practice, the better prepared you’ll be to get the financing you need to purchase new equipment and technology – like a chairside CAD/CAM system or CBCT – that will keep your practice on the cutting edge. So, have a serious conversation with your accountant so that you’re well versed in your credit score, your debt-to-income ratio, how much you have in assets, what you have available to provide as collateral, your net operating capital and your practice’s cash flow. You’ll need this information when you look to finance any purchase.
6. Find the right lender for big purchases
Not all lenders are created equal. Your best bet is to find a financing group that has experience working with dentists and understands the complexities of being a practice owner. You want a lender who does more than let you borrow money; you want a lender that offers practice management support, has easy-to-use planning tools and can provide useful practice-building strategies. With this kind of support for your practice as it grows, you’ll be able to spend more of your time on your practice and patients… and less time worrying about money.
7. Consider exclusive Patterson Fall Financing rates to boost your buying power
Again this year, we’re excited to offer limited-time financing rates to take the bite out of your investment. Unlock a new level of practice efficiency and patient satisfaction with key equipment and technology upgrades. Speak with your Patterson representative about which items might be the best fit for your practice – they’re ready to help you consider what you need now, what you need next, and how to take a healthy approach to financing.
Ready to explore equipment and technology options? Browse solutions and find your path to purchase today.
