Dental Spa Practice & Equipment Financing

Dental Spa's have evolved from the Medical Spa industry. Typically Dental Spas offer cosmetic dentistry and aesthetic treatments in a spa-like environment. For more information on the Dental Spa equipment, visit: www.dentalspaequipment.com

Dental Spas are very capital intensive, and the best way to manage the high startup costs is to utilize the flexible financing available. The Dental Spa industry, perhaps more than any other, is one where you must control your capital costs in order to maximize your monthly cash flow.

Dental Spa Practice Equipment Leasing

One of the first things you'll notice is as with many of the traditional dental practice equipment, dental spa equipment is fairly expensive so it is most often leased.

Common Advantages of Leasing Dental Spa Equipment:

	Less impact on cash flow	Lower monthly payments more easily meet your cash flow requirements.

	Reduced paperwork	Some leasing programs only require a simple, one-page application.

	Conservation of capital and credit	Your lines of credit and internal sources of capital aren't tied up in equipment. Instead, they're available for opportunities such as future expansion, marketing, or personnel.

	Immediate use of equipment	After signing your documents, you can contact the vendor to schedule delivery. It's that easy.

	100% financing - including soft costs	In addition to financing 100% of the equipment, you can include "soft" costs such as sales tax, shipping, software, training, extended equipment warranties maintenance and installation.

	Tax benefits	Depending on the structure, you may be able deduct the monthly lease payments as an operating expense. In addition, leasing may help your practice avoid the Alternative Minimum Tax (AMT).

	Improved balance sheet ratios	Unlike the other methods of financing, operating lease obligations generally are not capitalized, improving balance sheet ratios.

	Reduced interest rate risk	By locking in fixed payments now, you can avoid the risk of inflation in the future.

Common Equipment Leasing Structures for Dental Practices:

Tax Lease	If structured to meet the IRS guidelines, you can write off the entire lease payment and an expense (off-balance sheet). The purchase option is a FMV (Fair Market Value). This is a good choice if the equipment will become obsolete within 3/5 years. Gives you the choice of ownership at the end of term.
Capital Lease	This is, in effect a conditional sale, usually contains a "dollar out" or 10% PUT (Payment Upon Termination) purchase option. Some high liability equipment must be structured as a Capital Lease. Good option if you intend on owning the equipment, since you can deduct interest charges and get the depreciation benefits.
Municipal Lease	This is a tax-exempt lease specifically designed for federal, state, town, city, or county owned medical facilities. Lessee must qualify as an issuer of tax-exempt obligations as designated under Section 103 of the Internal Revenue Code, as amended. Great choice if you want to own the equipment, since title automatically transfers at the end of the lease.
Sale/Leaseback	Existing equipment can be purchased by us and "rented" back to you. This returns "cash" to you immediately and you can match your procedure revenues to the monthly lease payments.

For Dental Spa Financing:	Information on the Medical Spa Industry: