Business Success for Your Dental Practice – Henry Schein Financial Services
With advances in the healthcare industry, dental practice owners know that dental offices in particular often require upgrading their equipment and technology more often than some other small businesses, in order to operate their practice successfully and deliver exceptional patient care.
In many cases, dentists choose to finance* the equipment they need rather than purchasing them outright or leasing them.
Here are 3 things that dentists and practice owners should know about financing these practice purchases.
1. It may be better to finance your equipment, even if you have enough cash on hand
Even when dentists have enough cash available to comfortably purchase these investments outright, a financing* option still may be the better way to go. The last 24 months have shown how important it is to have healthy levels of cash on hand, in case of unexpected events or closures. By financing, especially with a low-interest or even a no-interest option, can help you preserve healthy cash flow levels for your business.
Furthermore, to add to the advantages of financing equipment is a potential tax deduction. When you purchase and place equipment into service during the same year, you are able to claim a Section 179** tax deduction. With Section 179, you can deduct the full amount of your equipment purchase, without paying the full amount this year. By doing so the amount you could save in taxes may exceed the payments you make this year, making a positive impact on your practice’s bottom line.
3. Owning equipment can have more benefits than leasing
At Henry Schein Financial Services, we view a lease as another tool to help you acquire the equipment your practice needs. Leasing does have its benefits including a potentially lower monthly payment, and it won’t appear on your balance sheet as a debt, but it does have its drawbacks.
When financing, you are on a path to own the equipment outright, which can make your practice more valuable and feature a payment end date. By owning the equipment outright, financing programs offer a predictable payment schedule, with typically flexible terms between 3 and 5 years allowing you to fit it into your budget more easily. Plus, Ownership can have an immediate tax advantage with Section 179**, which is not available on a lease since the practice owner, doesn’t own the equipment they are practicing on.
The 3 Things Dentists Should Know about Equipment Financing are;
- It may be better to finance your equipment, even if you have enough cash on hand
- New equipment can help you grow your practice in more ways than one
- Owning equipment can have more benefits than leasing
The information contained herein is intended to be informative in nature and is not intended to be a substitute for professional advice. The information was obtained from sources we believe to be reliable but is not guaranteed. Henry Schein does not undertake any obligation to update or revise any statements contained herein, or correct inaccuracies whether as a result of new information, future events, or otherwise. Dental professionals must make their own business decisions and may wish to seek professional advice before acting with regard to the subjects mentioned herein. Nothing contained herein should be treated as legal, business, accounting, international, insurance, tax, or other professional advice
* Rates and programs are subject to change without notice. All transactions are subject to the satisfaction of underwriting guidelines, credit approval by third-party lenders, and documentation requirements, and not all applicants will qualify. Certain other restrictions and additional terms and conditions may apply.
** Neither Henry Schein, Inc. nor Henry Schein Financial Services provides tax advice. Please consult with a qualified professional tax advisor to determine your eligibility for a Section 179 tax deduction. Must purchase and place into service by December 31, [current-year].
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