Patient finance for dental treatment - Advantages of the Extended Payment Scheme
With the growth of private dentistry many patients prefer to finance their treatment, particularly for the more expensive procedures, as it makes them more affordable to them. By offering finance you can increase treatment uptake, improve profitability and benefit from a regular monthly income. You will need a Consumer Credit Licence to offer patient finance; this usually takes about 6 weeks.
Patient credit options from the CODE Buying Group
Extended Payment is a loan arrangement between the practitioner and the patient, which is administered by CODEplan. The patient pays monthly and each payment is remitted to you monthly, less the admin fee (called subsidy*). This is the lowest cost patient finance and is particularly useful for orthodontic treatment or for patients who are on a dental plan and are already receiving a treatment discount. The practitioner pays the subsidy so that the arrangement is free to the patient.
Traditional interest free credit
With traditional interest free credit, you pay the subsidy, but the cost of the credit is higher because the total loan, less the subsidy is paid to the practice at the beginning of treatment. The average cost to the practice is 9% .
Part subsidised credit
Your patient and you share the cost of the subsidy in part subsidised credit. The patient is charged 9.9% APR and the average cost to you is 5%. The total loan, less the subsidy is paid to the practice at the beginning of treatment. The average cost to the practice is 9%.
Interest bearing credit
The patient pays all of the interest, but there is a smaller one off subsidy charged to the practitioner to set up the loan. See below. The total loan, less the subsidy is paid to the practice at the beginning of treatment. The average cost to the practice is £60 per thousand.
Interest free and interest bearing credit is provided to the CODE Buying Group by Braemar Finance.
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