During this blog, we will be running through how investment can elevate private dental practices without affecting cash flow. This blog is bundled with top tips on how to get started and get the best deal.
It is unlikely to have escaped your notice that dental practices are in a growth phase. This is something that is obviously always a boon, but perhaps even more so given the challenging couple of years we have all lived through.
There is general demand from people unable to access NHS dentistry due to never ending waiting lists. Many of whom are realising that your hygiene department might well be an ideal first port of call. As well as those who, after seeing themselves for so many hours on screen during meetings, feel they might benefit from cosmetic dentistry.
Making the most of opportunities
It may be that providing a full service to your patients post-COVID to make the most of these opportunities requires some investment on your part.
This might involve the purchasing of expensive equipment, which will be well worth the investment over the long term. But there is an obstacle- cash flow health. After all, we all need to keep money flowing in and out of our businesses every month to pay our bills.
- Alternative lines of funding – you do not need to use up a bank facility
- VAT consideration – on rental agreements, the VAT is included in the rental, not in a lump sum
- Pay for the equipment as you use it – companies pay employees over time as they work, so why pay all the cost for dental equipment in advance?
- The latest equipment – always have the latest dental technology at your disposal by implementing a recycling strategy, whereby you replace equipment at the end of the lease term
- Tax planning – using a lease rental agreement, 100% of your rental is deductible against your company’s corporation tax.
The super-deduction tax scheme
You may have heard the term ‘super deduction’; this government scheme allows companies to cut their tax bill by up to 25p for every £1 they invest, enabling those who take advantage of it to keep hold of surplus cash.
As a leasing company that has its finger on the pulse of finance, we have got involved in the super deduction tax scheme. This means we can provide clients with 130% tax relief once they sign a lease purchase agreement.
Because of the surplus cash that this scheme has enabled businesses to hold on to, there is considerable merit in moving away from lease rentals and towards lease purchase agreements.
Indeed, the scheme has provided faster tax relief for investments, which has allowed businesses to invest and grow, even after the hard times of the pandemic.
The super deduction tax will end on 31 March 2023, meaning businesses will have only a few months from now to take advantage of it, so don’t delay!
Read more on the super-deduction tax scheme here.
Dental equipment leasing
Having established that dental equipment leasing offer benefits for all dental practices, the question is – how do you get started?
First of all, I invite you use our free dental finance calculator by clicking here. A simple process, it provides a really good idea of what your monthly payments would be. Alternatively download our award-winning, real-time app, which gives you the best rates from the top leading lenders.
If you then choose to take the next step, at WestWon there is a very simple process, as follows:
1. Ask your supplier for a quotation, giving the capital cost
2. We provide a free, no-obligation finance illustration
3. You make the call when you are ready to get started
4. Credit acceptance is sought by us, with the aim of obtaining it within 24 hours
5. The rental agreement is sent to you, to be signed and returned, and any deposit the supplier requires is paid
6. Equipment is ordered and delivered
7. You confirm delivery and only then does the rental start.
We have created a service where you can be assured our team is working hard to provide a range of financial services that is tailored to suit the specific needs of dental practices across the UK.
There are, obviously, other leasing companies out there. But it is absolutely worthwhile giving due consideration to the potential benefits provided by a company that specifically works in the dental sector, and, of course, is award-winning!
Working capital loans
Beyond the desire to acquire specific pieces of equipment for the practice, there may be everyday aspects of keeping the business running that need a cash injection.
Certainly, a lack of capital need not hold you back, and there are short-term options if you need to bridge a financial gap. For instance for website creation, team expansion, and recruitment, working capital loans are ideal.
It works a little like a bank overdraft, and there are a variety of flexible repayment options available at fantastic rates nowadays.
One example is as follows:
Company Finance: Company X
Loan value: £25,000.00
Term: 36 months
Repayment: £812.75 per month
Rationale: The recruitment of a team member and website development.
A loan like this can make a project that will benefit not only the business but also the dental team and the patients a reality, helping to set your private practice up for future success.