This article is sponsored content brought to you by Credabl.
With so many innovative equipment suppliers across the dental sector, it’s easy to get excited by the prospect of a new chair or other equipment for your practice. Whether your motivation is to improve your patient care, keep your equipment up-to-date, or fulfil your inner equipment geek, asking the right questions upfront will ensure you make a smart investment.
The team at specialist dental lender Credabl has pulled together a list of 7 factors for you to keep in mind when buying new equipment:
1. Are you investing in equipment to generate new income or offer a new service? If you’re upgrading a machine you’ll know the equipment already drives income in the practice. But if you’re adding a new machine, you need to ensure it is going to add greater value to your practice. It’s important to calculate whether or not the additional fee income it’s likely to generate will cover the cost of the machine. There are non-monetary benefits to consider too, such as being ahead of the curve with cutting-edge dentistry, or ensuring you have the same technology as all those in your area.
2. So many equipment suppliers—who to choose? The best fit is the one you trust, feel comfortable with and will be there when you have a service or maintenance enquiry. Never underestimate the value of relationships, especially if you find yourself in a difficult situation.
3. How will you pay for the equipment? Cash, credit or finance? Equipment finance usually offers structured repayment terms and preserves working capital in the practice. Generally, the repayments (or financing costs & depreciation) can be tax deductible against practice income and at the end of the agreement there is a plan in place for you to take final ownership of the equipment. Further, suppliers may allow you to trade in old equipment before the end of the finance agreement to enable you to purchase a new model and keep your monthly commitments the same.
4. How long do you intend to keep the equipment? Matching loan terms with equipment life span is important as you don’t want to owe money on gear you’ll have to replace, whether it be due to changes in technology or just aging equipment. If you’re sitting on equipment that’s near the end of its useful life, hefty repair costs are often similar to the monthly repayments associated with the purchase of replacement equipment.
5. Does the purchase price advertised include GST? The GST component can have an impact by increasing your monthly loan repayments. Whilst you can finance the full amount (inclusive of GST), the alternative would be to tip in your own cash, if you have it available, to cover the GST portion upfront. Doing that has the effect of lowering your monthly loan repayments and total interest cost.
6. When is the best time to pay for your new equipment? Making sure payments are ready to go when the goods are ready to be installed is critical. Every supplier is different so make sure you check out their settlement terms, and ensure your funds are ready to go when the goods are. Bringing purchases forward to coincide with end of financial year, BAS quarter or one off events like the instant asset write off can have a significant impact on your cashflow and tax benefits.
7. What’s in it for me (WIFM)? It might feel strange to factor this in, but investing in equipment is no light decision, especially when we are talking $50-200K or more. So, if there is a way for you to benefit, then why not? Gone are the days where you have to rely on a credit card to earn Qantas Points. With a Qantas Business Rewards membership, you can reward your business for going about its business and reward yourself in the process. Credabl offers clients 1 Qantas Point for every $1 financed (uncapped) on commercial equipment finance leasing, commercial asset finance and commercial loans*.
Whether you’re leaving ADX or other workshops, exhibits, conferences or showrooms armed with brochures to consider your options or you’ve got your heart set on a brand-new chair you’ve seen on show but not sure how to pay for it, rest assured the team at Credabl is here to lighten the load.
Funding your chairs, dental units and other equipment in the right way will give you the balance between cash flow needs and tax effectiveness, plus the perfect practice. Contact Credabl today to find out more about our quick and easy finance for all your practice needs.
* A business must be a Qantas Business Rewards Member to earn Qantas Points for business. A one-off join fee of $89.50 including GST normally applies, however this will be waived for Credabl Pty Ltd (ACN 615 968 100) customers if they join at www.qantasbusinessrewards.com/credablfree. Membership and Qantas Points are subject to Qantas Business Rewards Terms and Conditions (www.qantas.com/au/en/business-rewards/terms-and-conditions). Qantas Points for business are offered under the Credabl Terms and Conditions (www.credabl.com.au/qbr). Members will earn 1 Qantas Point for every $1 financed on commercial equipment finance leasing, commercial asset finance and commercial loans obtained directly through Credabl. Not available for any consumer lending products or in conjunction with any other offers. Qantas Points will be credited to the Member’s Qantas Business Rewards account within 45 days of finance being provided. Any claims in relation to Qantas Points under this offer must be made directly to Credabl by calling 1300 27 33 22 or emailing email@example.com.