How to Offer Orthodontist Financing to Customers
More and more, dentist firms and service providers are realizing the value of offering orthodontist financing to customers.
This isn’t surprising. After all, the stats indicate that there is a pressing and urgent need for dentistry services in the United States.
Information shared by the Centers for Disease Control and Prevention (CDC) indicates that between the years 2015 and 2018, 13.2% of children in the U.S suffer from tooth decay. The same report shows that 25.9% of adults between 20 and 44 years of age live with untreated dental caries/cavities.
What’s more, dentistry procedures are not cheap, with some operations exceeding as much as $100,000 depending on the service provider.
Needless to say, with dentistry services being in high demand coupled with the elevated costs associated with its rendering, providing orthodontist financing to patients is a fruitful and lucrative venture that dentistry firms need to consider.
In this article, we will go over the type of orthodontist procedures that traditional finance plans typically cover, the benefits of offering it as a lender, and the best way you ought to go about delivering this financial solution to customers.
Let’s dive in.
An Overview of Orthodontist Financing
Orthodontist financing is a special line of monetary credit provided to patients to cover expenses related to orthodontic procedures and operations.
Due to the tendency to use the terms orthodontics and dentistry interchangeably, there is a notion that dental financing implies that a patient can access the same type of financial solutions afforded to those who seek orthodontist financing.
It is undeniable that there are serious overlaps between the two fields. However, it must be stated that orthodontics refers specifically to oral health care services which cover standard dental care procedures as well as special operations related to the teeth and jaw that help to give people the perfect smile.
Therefore, orthodontist financing usually covers operations such as the installation of metal braces and ceramic braces, retainers, clear aligners, and any other type of dental or orthodontic treatment.
Patients who do not have an insurance plan or insurance coverage from a licensed insurance company, a well-funded health savings account, or do not enjoy the luxury of complete coverage under orthodontic insurance or dental insurance are those who need assistance funding their orthodontic care.
Therefore, they usually resort to financing options.
What Orthodontist Financing Brings to Lenders
Providing orthodontist financing to patients denotes a step in the right direction for dental and orthodontic firms that wish to gain high profit margins and reel in more clientele.
Here’s a breakdown of some of the main benefits associated with this type of practice for lending dental institutions:
- Augment the number of service orders: With dental services being characterized for their high cost, more and more patients are dissuaded to get oral treatment for their conditions. After all, many do not like the idea of paying their entire medical bill upfront. Therefore, by offering a variety of payment options, you give patients an incentive to want to use your services. This implies an increase in service orders for your firm that naturally translates to a boost in revenue.
- Be unique among your competitors: The more attractive your financing options are, the more likely customers are to pick you over your competitors. Therefore, by expanding the number of payment possibilities afforded to customers, you stand out among your competitors as a viable service provider for customers.
- Widen the pool of your target audience: Offering a new type of financial solution to customers allows you to tap into new segments of your target audience. These consist of patients who would not have ordinarily considered dentist work, yet have now changed their mind since your payment options make it affordable for them to do so.
The Dangers of Traditional Orthodontist Financing Plans
Currently, patients who seek orthodontist financing for their dental work are accustomed to the following types of finance plans:
- Home equity line of credit
- Unsecured personal loans
- Cash-out refinance
- Credit cards
- Home equity loans
- Secured personal loans
In as much as there is variety in the options presented, it must be stated that all of them constitute a serious concession to the borrower (in this case, the patient):
- Exorbitantly-high interest rates: The chief culprit of high interest on orthodontist financing is unsecured loans. While it is true that these types of loans are known for having a fairly simple and easy approval process, the patient is bound to a high interest rate since they have not placed any collateral or asset to guarantee the repayment of the loan. Consequently, elevated interest payments can be a disincentive to most patients since it may not be affordable for them in the long run.
- Unsuitable terms and conditions: Once a patient has signed the terms and conditions of the loan, it usually cannot be altered. In most cases, the terms and conditions which these agreements contain do not favor the patient financially nor do they take into account the specific needs or challenges of the patient when it comes to paying off the credit advancement.
- Limited borrow amounts: Most lender financial plans have a limit on the amount of money which the borrower can request. As mentioned previously, some dental procedures can cost as much as $100,000 depending on the lender. Yet not all finance plans cover that money in credit. Therefore, for patients who require funding, most plans cannot cater for their needs.
In summary, the main challenge today is that the finance plans available to customers are not suitable for all applicants.
Instead, the best way to correct the gap in meeting customer needs is to offer flexible finance plans to dental and orthodontic patients.
Time Investment Company can give you the comprehensive guidance you need to ensure that it’s a success.
Time Investment Company for Orthodontist Financing
Time Investment Company (TIC) is a family-owned finance company that specializes in crafting finance solutions for businesses across varying niches so that their customers can secure comfortable and affordable finance plans for their services.
For the last forty (40) years, we have partnered with dental and orthodontic firms to provide coverage across a host of procedures including:
- Cover braces
- Traditional braces
- Metal braces
TIC works directly with orthodontic service providers to plan, draft, and provide attractive payment plans that make it easier for your patients to afford orthodontic care for a beautiful smile. Our financing solutions simply require patients to make a down payment on your service and clear the remaining balance by making fixed monthly payments at a lower interest rate than what traditional treatment plans cover.
During our tenure, we have collaborated with more than 250K businesses and financed over $775M in successfully-repaid loans.
Partner with a company that works together and alongside you to create financial solutions that draw your patients in and increase your service orders.
Takeaways for Orthodontic Financing
In short, flexible finance plans have the potential to be one of the most remunerating, advantageous, and rewarding initiatives that orthodontic firms can undertake today.
TIC is poised to help you draw up financing solutions for your patients that’ll allow them to offset the cost of treatment and access your services under more favorable conditions.
Reach us via (800) 236-1177 to learn more about how we can assist you in accessing these plans for your patients today.