Guide

Your practice wants a fourth operatory or a CBCT unit. How does the equipment get financed, and what about the ramp?

A dental practice is one of the easiest equipment files a lender sees: the chair, the delivery unit and the imaging secure the loan, collections are steady, and terms of five to seven years are normal, often through the manufacturer's finance arm. Compare that offer with an independent equipment lender's. Fund the months before the new operatory is booked — the hygienist's hours, the marketing, the reimbursement lag on the new production — on a line of credit, not out of collections.

Why the equipment side is easy

A dental chair with its delivery unit, a panoramic or cone-beam imaging system, a sterilization center: each is a high-value asset with a serial number, a service history and a resale market, in a practice whose deposits arrive from payers on a schedule. Lenders like every part of that. Terms run five to seven years for major equipment, down payments are small or zero for an established practice, and the manufacturer's finance arm will often price aggressively to place its own machine.

Get two quotes: the manufacturer's finance offer and an independent equipment lender's on the same invoice. The difference is often in the fees and the buyout terms rather than the headline rate, and it is worth twenty minutes.

The ramp is the part practices fund badly

A fourth operatory does not open fully booked. The hygiene schedule expands over months, a new associate's column fills over 60 to 90 days, and every dollar of new production is reimbursed 30 to 90 days after it is delivered. Meanwhile the chair payment started the month it was installed. The practice is more productive and, for a quarter or two, shorter on cash — and the usual response is to let collections absorb it, which is where the year-end surprise comes from.

A business line of credit sized to three months of the new operatory's cost, drawn for the ramp and repaid as the reimbursements catch up, is the right shape. Practices qualify for lines readily. Apply for it at the same time as the equipment, on the same statements, rather than in month four when the numbers are thinner.

Cost of $50,000, by product

BANK TERM LOAN60 months · hardest to qualify for$13,700SBA 7(A)120 months · lowest monthly, slowest$34,200ONLINE TERM LOAN18 months · days, not months$11,500LINE OF CREDIT12 months · pay only on what you draw$7,400MERCHANT CASH ADVANCE9 months · fastest, no score floor$15,000$0$36,000
Total cost of capital on a $50,000 facility, with the term stated on every bar — a comparison that hides the term is not a comparison. An advance is the most expensive money here and the only one that reaches a business the bank has already declined. Illustrative figures at mid-range pricing, not an offer.

What to send

The equipment quote, six to twelve months of statements, a payer mix summary, and a production projection for the new operatory that is honest about the fill rate. A CBCT application is stronger with a sentence on the referral volume it keeps in-house — the implant and endo cases currently sent out — because the lender is reading whether the machine pays its own note, and that is the answer.

Refurbished and the buyout

Manufacturer-refurbished chairs and imaging units with a warranty finance nearly as easily as new and cost materially less. A private-sale unit without service records is the one a lender will inspect and shorten the term on. And read the buyout on any lease: a fair-market-value buyout on a chair you will run for fifteen years costs more than a loan or a dollar buyout.

Sources

Related questions.

Does my personal credit matter for practice equipment?
It sets the rate and the down payment more than the answer. Dentists' personal files are usually strong; where they are not, the equipment and the practice's deposits carry the underwriting and a down payment fills the gap.
Can a practice under two years old finance a CBCT?
Usually, because the unit secures the loan and new practices are a known lender category. Expect a down payment and a shorter term than an established practice would get. Six months of collections is a common floor.
Does Section 179 apply to dental equipment?
Generally, yes: new or used equipment placed in service in the year can be expensed up to the annual limit, financed or not. The IRS publication on depreciation is the authority; the deduction on a major purchase often covers a large share of the first year's payments.

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