How should a dental practice payment plan for in-house financing be structured?
Short, simple, and front-loaded enough to protect the practice’s cash flow. A typical structure that works for many practices: twenty-five percent down at the start of treatment, followed by twenty-five percent in each of the next three months, completing payment over four total months. The structure has several advantages. The down payment confirms patient commitment immediately. The four-month duration is short enough that the practice carries the receivable for a manageable window. The equal monthly payments are easy for patients to plan and easy for the practice to invoice. The framing positions in-house financing as a backstop for patients who cannot or will not use third-party financing, with terms that work for both sides. The financial coordinator presents it cleanly: “You could opt to finance with our office, over four months with twenty-five percent down and twenty-five percent in each of the next three months.” Practices that try longer terms or smaller down payments routinely run into collection issues that consume staff time and damage relationships.
If the answers you are finding here resonate with you, my team and I work with a small group of clients each year. The next step is a complimentary Discovery Consultation and Practice Review with Dr. McAnally.