Dental equipment finance: plan the practice purchase and repayments

Define the clinical purchase before the finance request

Replacing an unreliable chair, adding digital scanning or upgrading decontamination equipment can create a substantial supplier bill. Start with the practice's assessed operational need and the specification chosen by the responsible clinical team. Funding should support that decision, not dictate clinical choices.

List the equipment, accessories, installation and training required. Check whether supporting works or software are included in the quotation. A scanner package, for example, may have separate hardware, licence, storage and support costs. Ask what continues after an introductory period ends.

For a practice group, identify the company buying the equipment and the site where it will be used. Do not assume a trading name, individual dentist and operating company are interchangeable on an application.

This article covers an established business's vendor purchases. Buying another practice, refinancing property and offering patients instalment treatment payments require different arrangements.

Turn the supplier quote into a usable project budget

For practices in England, CQC's premises and equipment guidance includes suitability, proper use and maintenance. The finance budget should leave room for meeting the practice's responsibilities. A lending decision does not establish regulatory compliance, and requirements elsewhere in the UK should be checked with the relevant regulator and advisers.

If the purchase requires a room to close temporarily, estimate the cash impact using the appointments that can realistically be moved or delivered elsewhere. Do not assume every unavailable appointment is lost, or that every postponed appointment can immediately be recovered.

Illustrate repayments with the actual total charge

A real provider may cover a different amount or use another repayment structure. This illustration does not apply a stated monthly interest rate. Use the actual total charge and schedule when comparing offers, and allow separately for any costs the provider will not fund.

Test repayments against existing practice cash after staff costs, laboratories, premises, tax and other commitments. If the investment is expected to support more appointments, account for staffing and consumables needed to deliver them. Capacity alone is not a forecast of patient demand.

Ask an accountant to confirm tax and VAT treatment for the practice's circumstances. Do not reduce the cash budget by an assumed recovery or allowance before its availability and timing are established.

Compare payment flexibility with ownership and support

Supplier payment finance concerns an approved outgoing invoice and a repayment agreement. Asset finance, including leasing and hire purchase, is another category to compare for equipment; the Finance & Leasing Association provides background information on those structures.

Request comparable quotations for the same specification and support package. Record deposit, total payments, ownership position, final charges, early termination and responsibility for maintenance. A low monthly payment can conceal a longer term or a different end-of-contract position.

For software-connected equipment, ask what access remains if a subscription is cancelled. Confirm data export, support and compatibility with the practice's existing systems through the relevant supplier. These commercial and technical questions need answers even when the hardware price is affordable.

Do not infer that a manufacturer is an approved partner of Hello. The provider must accept the specific vendor and invoice. Our supplier payment guide explains the introduction and assessment process.

Check the borrowing entity and prepare the enquiry

Hello focuses on established UK limited companies and LLPs with annual revenue of £1 million or more. The provider assesses the borrowing entity, financial position and transaction. A clinician's professional registration or a practice's reputation does not replace the funding criteria.

Eligible funding can be up to £1 million with terms up to 12 months. Hello charges £0 for an introduction; provider interest, fees, security and any personal guarantee are separate matters to review in the offer.

Prepare the legal company details, itemised supplier quote and required payment date. Keep patient records and clinical case information out of the initial enquiry. For a software or IT purchase supporting the project, the business laptop guide includes further cost comparisons.

When the purchase and company fit are clear, enquire about dental equipment funding. Confirm the offer before placing an order that depends on finance being available.

Questions, answered.