Our Dental Divisional Director Richard Porter explains why leasing might not always be right for you in the current climate.
Leasing – Good or bad for Dentists?
Despite 70% of dentists still going down the leasing route; I wanted to look at why 30% of dentists find it better for them to make use of Bounce Back Loans
Let me put this into context; as a dentist who may be thinking of purchasing new dental equipment, dental chairs or even that new car, you will be faced with many different providers of finance.
However, in the current climate is Leasing or Hire Purchase really the best way to purchase the equipment?
After spending the last 20 years working with dentists, I like to think I have a good understanding of how the sector purchases their equipment from the suppliers, you may also be thinking:
“Why is he in finance and saying this?!”
30% of our clients are choosing a Bounce Back Loan rather than a lease.
The two obvious lending facilities out there, are the Bounce Back Loan and the CBILS loan scheme, two new financial products which the majority of us have become experts on. To those who may not know, back in April, the government announced the launch of a new whizzy, fast-track loan scheme to support our small businesses during the pandemic crisis.
The Bounce Back Loan scheme was one of measures to help support small and local industries with vital cash injections and securing economic growth.
Where I feel there are pros and cons for both CBILS and Bounce Back, I cannot ignore the fact that the Bounce Back Loan is by far one of the best forms of funding available to you.
With nothing to pay for the first 12 months and a rate of only 2.5%, not to mention a term of up to 10 years, and no fees for paying it off early, this is by far the best form of borrowing available to you.
The way forward
The Bounce back is getting negative press for billions of pounds of fraudulent claims, but that aside this type of loan has helped 1000’s of businesses use the funds for the greater good.
The bounce back loan however is still not right for everyone – and in fact as many as 70% of dentists still choose to utilise traditional leasing routes. In many cases Dentists do not fit the criteria required to apply – for example, a business is not able to take out a Bounce Back Loan Scheme facility if they have been approved for a CBILS facility, and vice versa.
In this instance Leasing and HP is a sure-fire way to avoid depreciation, reduce maintenance costs and ensure you stay ahead of your competition by regularly renewing your equipment and facilities. This will always be the case, but in the current climate and while it is still available, bounce back loans are the best way to make purchases while it lasts. Presently, both the Bounce Back Loan and CBILS schemes are set to close on the 31st March this year.
Whether you sit in the 30% or the 70% – we here at WestWon are here to guide you on best course.
To see how Richard or another member of our team can help you, please give WestWon a call now on 01494 611 456 or email firstname.lastname@example.org.