Juggling the desire for new equipment with the cost of splashing out and balancing your chequebook is a constant internal battle for practice owners around the country – is it time you tried Handpiece Finance?
The demand and desire for finance in the dental industry has sky-rocketed over the last few years, with more and more practices opting to hire purchase or lease their handpieces in order to avoid high outright payments and cash flow issues.
Arguably the most popular form of finance is Hire Purchase, which allows the owner to pay monthly towards their handpiece across a fixed time period. At the end of this period, and once all debt is cleared, they have outright ownership of the product. With proven ability to make cashflow budgeting easier, capital preservation and benefits in taxation, it’s not hard to see why Hire Purchase is a firm favourite in the industry.
One of the many benefits of Hire Purchase is that at the end of the agreed term, you will be the full owner of your handpiece. The amount and time scale over which you pay is completely flexible with most companies (including Trigiene), but most practices tend to take out their agreement over a minimum of 18 months. Pay a fixed, regular sum over a number of months or years and at the end of the period you’re the owner of your favourite equipment.
But what happens when you’re part way through your payment term for your handpiece and your eye is caught by a shiny new piece of technology which has just stepped on the market? The downfall of Hire Purchase finance is that it’s harder to chop and change your product as soon as a new handpiece is released, unless you choose to pay off the sum in one lump. If you’d rather have constant freedom to switch up your handpiece selection, you might be more suited to Lease Finance.
With Lease Finance you can enjoy freedom and flexibility with your equipment with very low commitment. Set out affordable monthly payments, with no upfront deposit, and get your hands on the latest technology. Stay ahead of your competitors by simply switching to a new handpiece and new payment contract as soon as the new technology hits the shelves.
While it may be cost efficient – with easy cash flow, protected credit lines and tax efficient solutions – the downfall to Lease Finance is you never fully own your handpiece. While this may not be an issue to some, and the benefits of capital preservation may easily outweigh it, it is something you should consider fully before you commit to Lease Financing your products.
