By: Bill Artino, Vice President and General Manager of Professional Solutions Financial Services

First, let me set something straight––I’m not criticizing banks. Banks are a great source for financial services in the right situation. For example, if you have a large line of credit at the bank that can handle equipment and everyday business expenses, then it may make sense to go with your bank. But there are times when it may not be your best solution.

Banks are set up to do high volume business for the general population; they do not specialize in any one industry. Also, many services, such as lines of credit, are set up for the ease of the bank. And, while they may also be easy to use, there are consequences to tapping into lines of credit. Dr. Smith’s story below outlines one of these consequences.

To ensure your business and personal finances are properly aligned, equipment purchases demand more thought, especially in a technical field like dentistry. That’s why Professional Solutions Financial Service offers the DentaltownPlus Lease and Loan Program. The DentaltownPlus Lease and Loan Program offers Townies access to financial professionals who are experts in healthcare equipment and financing. This service allows dentists to get free advice before they purchase equipment or get themselves into a pinch. Unfortunately, many people wait to seek advice until after they’re in a bind. The following two stories demonstrate typical calls received from healthcare professionals:

Dr. Smith’s Story
“Dr. Smith” had taken the plunge and started his own practice. He bought some new equipment and also hired staff. In order to accomplish these purchases he used his home equity line of credit at the bank to buy most of the equipment, and his bank credit line for other office expenses.

Everything was going smoothly until he and his wife wanted to purchase a new home for their growing family. Due to using the home equity line for business purchases, they realized they had virtually no equity in their home. Paying off the home equity line of credit with the other line of credit at the bank was not an option because he still needed that line of credit for office expenses and didn’t have enough available credit for everything.

All of a sudden, Dr. Smith and his wife found themselves cash poor. Even though they had many assets and were doing well financially, they were in a bind and strapped for cash to purchase the home they wanted.

Dr. Maxwell’s Story
“Dr. Maxwell” found herself in a completely different situation. She leased $15,000 worth of equipment from her bank’s leasing company. Being new into practice, she had planned to return the equipment at the end of the lease and trade up to better equipment after she was more established. What she didn’t understand was that she had to notify the bank leasing company within 60 days before the lease ended, otherwise her lease automatically renewed for another year. Not understanding this “fine print provision,” she missed the grace period for notifying the bank and her lease automatically renewed for another 12 months without her consent.

Dr. Maxwell found herself stuck with another year of leasing this equipment, or paying a hefty penalty to get out of her lease.

The Townie Solution
Dr. Smith and Dr. Maxwell are smart businesspeople and great dentists. But they found out the hard way that going through a bank wasn’t their best solution and maybe they should have analyzed their options more before purchasing equipment. One phone call could have helped them find other alternatives.

Understanding the benefits and differences between financing through a bank versus a lease/loan company can be confusing. That’s why we’ve established the Lease and Loan Comparison Hotline available to Townies. You can reach Rachel Spyksma, the Dentaltown Account Manager by calling 1-800-750-5007, extension 7023.

Rachel has more than five years of experience working with healthcare professionals’ lease and loan needs. Her primary focus is finding the best solution for each dentist. “If someone is getting a better deal from their bank, I’m happy to tell them so. But many times I can help someone find a better solution they didn’t even know was available to them,” says Rachel. “I also frequently see scary ‘gotchas’ in leasing contracts that I’m able to point out before someone signs on the dotted line.”

The time to re-finance or line up a new lease or loan is before you need it. Call Rachel today at 1-800-750-5007, extension 7023. She can answer questions, compare your current contracts to other options available, and get your credit established right away so you’re ready to purchase equipment whenever you need it. Or you can visit DentaltownPlus online at www.dentaltown.com, click on the DentaltownPlus icon and look under Financial Services.

DentaltownPlus is the membership benefits section of Dentaltown.com. To see what other services we offer, please visit www.dentaltown.com today.