In this article I explain why offering patients finance to pay for costlier treatments can increase turnover, profits and patient satisfaction.

1. BUSINESS
Financing your future Reasons for not offering finance often
revolve around a number of concerns
held by the dentist/orthodontist that, in
reality, are unfounded:
Do you want to increase your turnover, profitability and patient
Q. Is offering finance really necessary?
satisfaction? Think finance says Brian Carter, director of Dental Finance Most people can pay cash.
A. Generally private orthodontic
T
here is no doubt that there is huge patients have been waiting for. It may be a treatment is in the price range £1,000
demand for orthodontic treatment from worthwhile exercise to contact patients who have to £5,000 or more and, whilst some
people wishing to improve their smile, recently left to ‘think about it’ and make them will happily afford this, others will
with particular interest in the range of ‘invisible’ aware of new payment options, as this can lead have difficulty doing so. This can be
disappointing for the practice where
tooth straightening options now available in the to treatment uptake.
potential business can be seen to be lost
marketplace. Another way of promoting orthodontic and frustrating for the patient who might
There seems to be no restriction on the treatment locally is by means of an open evening wish to benefit from the treatment, but
age range of people looking to benefit, from or open day. To be successful, they need to be who cannot proceed because of the cost.
parents seeking treatments for their children planned in advance with confirmed bookings Spreading that cost can make it far more
right through to people approaching or past for the day - offering some form of incentive or affordable for many.
retirement age who wish to benefit from special offer can help. Q. Aren’t people suspicious of finance?
an improved smile – something they may A well-organised open day can reap Do I want my practice associated with it?
previously only have dreamed of. significant benefits that will be enhanced by A. In the retail environment finance is
However, we know from experience that offering finance. One of our supporting practices commonplace and accepted by retailers
many people do not proceed with treatments recently agreed 16 treatments at one open day and customers alike. Most people get
and, very often, the reason for not doing so will of which eight (50%) were arranged on finance. paid monthly (from a salary or pension)
be the cost and their inability to afford it over a Another practice arranged 15 of which 10 (67%) so monthly repayments suit them.
short period of time. were arranged with finance – bringing obvious Q. Will we need to ask a lot of personal
benefits to the practice, as well as having a questions about our patients’ finances?
Advantages of finance number of happy patients who could arrange A. No. The application form can be
Many orthodontic practices are already seeing the treatment they wanted rather than leaving it completed by the patient and, with most
the benefits of offering their patients the ability until another day. finance providers, there is the facility
for the patient to apply directly to the
to spread the cost, although others have not yet
finance provider if they prefer to do so.
realised the potential of doing so. The difference Increasing treatment uptake
that offering finance can make is significant, The uptake of treatment plans will vary Q. Won’t I be encouraging patients to fall
although, to have its greatest effect, it should not significantly from one practice to another. From into debt?
be considered in isolation, but rather as part of our experience of working with orthodontic A. No. People will make their own
decisions with regards to how they wish
the overall package offered by the practice. For practices, on average treatment plan take up of
to finance their purchases. In the same
those in the early stages of offering orthodontic around 40% increases to 60% once finance is way that you may finance the purchase
treatment, the initial task will be to promote the offered. of a car, a new kitchen or a holiday, they
new service. Ideally use a variety of advertising On this basis, if your practice were to receive might wish to finance their treatment. If
media (website, local advertising, word of mouth five enquiries per week the treatment plan you work with an independent finance
etc), ensuring that advertisements highlight take-up could increase by one case per week, provider, the lender will carry out credit
the benefits of the treatment being offered – which, at an average of £3,500 per treatment, checks to ensure the finance is affordable
unless a patient is convinced by the benefits of could increase your turnover by £182,000 per for the applicant.
the treatment, they are unlikely to proceed, no year (see graph on next page). What difference Q. Is the process difficult?
matter how affordable it is made for them. could that make to your practice? A. No – it shouldn’t be. Finance providers
For more established orthodontists, the Some practices achieve considerably more will provide you with the information
ability to spread the cost can be just what some than this on finance – we work with orthodontic you need to comply with the Consumer
practices who arrange treatment in excess of Credit Act and the processing of finance
£35,000 on finance every month – more than applications is very straightforward.
Brian Carter has been a director at Dental
£400,000 per year. It makes a tremendous Q. Isn’t it expensive to offer?
Finance since 2001. The company provides
difference to their overall figures. A. No. In the case of interest-free finance,
consumer finance facilities, principally in
the practice bears the lender’s cost and
the dental sector. It offers finance plans
Effectively offering finance over a 12-month term this will equate
to increase treatment take up, patient
to around 9% of the sum financed.
satisfaction and improve practice profitability. A small number of practices offer finance
However, it must surely be better to
Previously, Brian worked at Barclays Bank options to their patients by spreading the cost
pocket 91% of the treatment cost than
and then First National Bank in various on an in-house basis. However, in addition none!
management roles. He is also an Associate of to a number of legal issues that can result in
the Chartered Institute of Bankers (ACIB). the practice being in breach of the Consumer
www.financingfirst-dental.co.uk Credit Act, they run the risk of a patient not
24 Orthodontic Practice September 2012

2. paying (and thus incurring a bad debt), as
well as having to expend resources chasing up
payments etc.
These problems can be overcome by “Not only will working with a
working with an independent finance provider specialist provider overcome
who can arrange schemes for general and
specialist practices with various options to
the uncertainties that many
make them attractive to both the practice and practices might have in offer-
the patient. ing finance, but there will be
Not only will working with a specialist
provider overcome the uncertainties that many the added benefits of an up-
Annual £ turnover (based on average treatment £3500) front payment at commence-
practices might have in offering finance, but
there will be the added benefits of an upfront
payment at commencement of the treatment
ment of the treatment and
With finance available £546,000
and the credit risk being taken by the lender. the credit risk being taken by
Without finance £364,000
Ideally, you need a scheme that offers the lender”
flexibility of options to enable the patient to
spread the cost in line with their budget –
when you have that in place you remove one
of the major hurdles to any sizeable treatment
proceeding.
For further information about finance Assumption - 5 treatment quotations per week with 40% (2) proceeding
options, please contact Brian Carter without finance, increasing to 60% (3) where finance is available
direct on 0780 1951921 or visit www.
financingfirst-dental.co.uk
September 2012 Orthodontic Practice 25