How should dental equipment dealers offer financing to practices?
Practices finance most of what you sell, from a single scanner to a full build-out. A playbook for dental equipment dealers: where deals stall, the structures that save them, and what a financing program should look like at $10 million to $500 million a year in sales.
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Dental equipment is a financed business. The Equipment Leasing & Finance Foundation estimates that about 58% of U.S. equipment and software investment was financed in 2023, and 82% of businesses that acquired equipment used some form of financing (2024 Horizon Report fact sheet). Your practices are no different, and the dealer who controls the financing conversation controls the timing of the order.
Why does financing decide dental equipment sales?
Because the tickets are large and the practices are under pressure. One new operatory runs roughly $59,000 to $110,000 in converted space and $95,000 to $168,000 as a full build-out (see what an operatory costs in 2026), and imaging, CAD/CAM, and practice-wide software sit on top of that. Meanwhile, the American Dental Association’s Health Policy Institute reports that dentist earnings are down as practice expenses outpace revenues.
Financing is also harder for healthcare businesses to get than most owners assume. In the Federal Reserve’s 2025 Small Business Credit Survey, only 39% of healthcare and education firms that applied for financing were fully approved, the lowest of the five industries the report highlights, and 67% said paying operating expenses was a financial challenge. A practice that hears “no” from its bank does not stop needing the equipment. It stops ordering it from you until someone fixes the financing.
The buyer base is changing, too. The share of U.S. dentists affiliated with a dental support organization more than doubled from 7.2% in 2015 to 16.1% in 2024, and younger dentists are buying practices later in their careers. More of your volume now comes from group practices, associates buying in, and first-time owners, which are exactly the files a single lender handles worst.
Where do dental equipment deals stall, and what saves them?
| The deal | Where it stalls | The structure that saves it |
|---|---|---|
| Startup practice | No operating history behind a large first order | A startup program built on the dentist’s credit, experience, and liquidity, with deferred first payments where the program allows |
| Associate buying in | Thin business file, practice financials not yet theirs | Structures built for associates buying in, often with a co-guarantor strengthening the file |
| Full operatory build-out | The lender finances the equipment but not installation, cabinetry, or software | One agreement for the whole project, soft costs included on qualifying transactions |
| CBCT, scanner, or CAD/CAM upgrade | “We’ll look at it next year” | A monthly payment next to the Section 179 deadline: in service by December 31 |
| Used or refurbished equipment | Outside the lender’s program | Financing for new, used, and refurbished units, underwritten on remaining useful life |
| One credit blemish | An automatic decline from a narrow credit box | A second look: money down, a shorter term, a co-guarantor, or a different program behind the same application |
The pattern is the same in every row: the deal is good, but it does not fit one lender’s box. That is why the partner behind your proposals should have more than one, so a decline from one program does not end the sale. Here is what to do when internal financing declines a deal.
What does a dental practice’s payment look like?
Practices budget monthly, so quote monthly. Here are common dental projects at an assumed 6.75%:
| Example project | Price | 60 months | 84 months |
|---|---|---|---|
| Two-operatory package, installed | $170,000 | About $3,346 | About $2,545 |
| CAD/CAM chairside system | $140,000 | About $2,756 | About $2,096 |
| CBCT imaging system | $120,000 | About $2,362 | About $1,796 |
| Intraoral scanner | $35,000 | About $689 | About $524 |
Illustrative payments at an assumed 6.75% with no money down. Example prices, not market quotes. Actual rates and payments depend on the practice’s credit, the equipment, and the term.
For quick math on any quote, multiply the price by a rate factor. At an assumed 6.75%, the factor is about .01968 for 60 months and .01497 for 84 months, or roughly $197 and $150 per $10,000. The full method and scripts are in how to quote a monthly payment.
What should a dental dealer’s financing program include?
- One application, several programs behind it. Each file matched to the sharpest pricing or to a direct lending program when speed, certainty, or structure matters more.
- Speed your reps can use in the operatory. At Five West, most submissions get a first response within 1 to 2 business hours, and approvals on clean files can come back in as little as 30 minutes.
- No paperwork wall. Application-only decisions up to $500,000 on qualifying files: the application, the equipment quote, and sometimes a few months of bank statements. The application starts with a soft credit inquiry.
- The whole project on one agreement. A single operatory or a multi-operatory build-out, with installation, training, software, and extended warranties included on qualifying transactions.
- Terms that fit the equipment. Equipment finance agreements up to 84 months, and fair market value leases for imaging and technology that will be replaced.
- Paid in full. 100% of the invoice on funding after delivery and acceptance, with deposit funding once documents are signed where the equipment requires it.
Which program tier fits a $10 million to $500 million dental dealer?
Five West’s tiers are sized by monthly application volume, and all three cost $0. If about half of your sales are financed, here is where you land:
| Annual equipment sales | Financed, if about half | Per month | Tier that fits |
|---|---|---|---|
| $10 million | $5 million | About $417,000 | Co-Branded, moving to Private Label as applications pass $500,000 a month |
| $25 million | $12.5 million | About $1 million | Private Label |
| $100 million | $50 million | About $4.2 million | Private Label |
| $500 million | $250 million | About $20.8 million | Private Label |
Application volume usually runs higher than funded volume, because not every application funds.
Co-Branded puts your logo on a payment calculator and financing page, adds the Partner Portal for live deal tracking, and pays 100% upfront on orders, at $100,000 a month in applications and one funded deal a quarter. Private Label builds a customer finance program under your brand, with CRM integration, sales meeting sponsorships, and support at trade shows and events, at $500,000 a month. The full comparison is in private label vs. co-branded vs. referral.
What should your reps say to a practice?
- On the proposal: “The two-operatory package is $170,000 installed, or about $2,545 a month over 84 months, estimated and subject to credit approval.”
- To a startup dentist: “We work with programs built for new practices, and many can defer the first payments so revenue starts before the payment does.”
- On an imaging upgrade: “It’s about $1,796 a month over 84 months. If it’s in service by December 31, it may qualify for Section 179; your CPA can tell you what that’s worth.”
- On a refurbished unit: “Refurbished equipment can be financed too, usually with some money down.”
- After any decline: “That program said no. Let me run it through a partner with more than one option before we give up on it.”
Don’t forget the fourth quarter
Profitable practices look for deductions in November and December, and Section 179 applies to financed equipment placed in service by December 31. Build your year-end list now, get approvals done by mid-November, and protect installation dates. The dealer’s version is in the Section 179 sales playbook, and the practice’s version is how Section 179 works for dental equipment.
The bottom line
Dental dealers lose more orders to financing than to competitors. Put a monthly payment on every proposal, finance the whole project on one agreement, and route every application through a partner with more than one credit box, so startups, buy-ins, refurbished units, and the occasional credit blemish still close. At $10 million to $500 million a year, that program should carry your brand and cost you nothing.
Frequently asked questions
Can dental startups get equipment financing?
Yes, selectively. Startup programs are built on the dentist rather than the practice: strong personal credit, relevant experience, and working capital left after the purchase. Some programs can defer the first payments. Full requirements are in the qualification guidelines.
Can installation, cabinetry, and software be financed with dental equipment?
Often, yes. A single operatory or a multi-operatory build-out can go on one agreement, and installation, training, software, and extended warranties can be included on qualifying transactions, so the practice sees one payment for the whole project.
Do dental practices need to send tax returns to finance equipment?
Usually not. Most dental equipment transactions are application-only up to $500,000: the application, the equipment quote, and sometimes three to six months of bank statements. A full financial package applies above that or on a practice acquisition.
Can practices finance used or refurbished dental equipment?
Yes. New, used, and refurbished equipment can be financed, underwritten on its remaining useful life. Used equipment from a dealer usually takes 10% to 15% down. See financing used dental equipment.
How fast can a dental practice get approved?
At Five West, most applications get a first response within 1 to 2 business hours, approvals on clean application-only files can come back in as little as 30 minutes, and funding follows in as little as 24 to 48 hours once documents are signed.
What does it cost a dental dealer to offer financing?
Nothing at Five West. Every tier is free to the dealer: no setup fee, no monthly fee, and no application fee for your customers. The practice pays the finance charge, as it would at its own bank.
When does a dental dealer get paid on a financed sale?
On funding. Five West pays 100% of the invoice after the practice signs and the equipment is delivered and accepted. Where the equipment requires a deposit, deposit funding can be released once documents are signed.
Start a partner program.
A dental financing program under your name, approvals your reps can use in the operatory, and 100% of the invoice on funding. The partner application takes about 10 minutes, and it is not a credit application.
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This article is general information about vendor financing for dental equipment dealers. It is not a rate quote, a commitment to finance, or tax advice. All financing is subject to credit approval and underwriting.