Customized Lease Facilitates the Expansion of Oral Surgery Practice
When a well-established oral surgery practice in Minnesota sought to bring on board a new surgeon, it became clear they would need to expand their capacity to accommodate the patient volume the new surgeon would generate. This meant opening a new facility.
New facilities require expensive new equipment – specifically in this case, a new CT scanner. But with a bank line of credit already in place, existing debt covenants would make traditional financing difficult.
As the buildout of a new clinic progressed, with just six weeks to go the practice still had not secured the financing they needed, and now time was of the essence. Fortunately, First American Dental Finance had proactively stayed in contact with the practice management team throughout the buildout process. So when they asked First American to propose a financing solution, First American was ready.
Leasing would allow the client to obtain the equipment they needed without impacting their balance sheet. The client preferred a shorter lease term and knew they would likely purchase the equipment at the end of the lease. However, the client also wanted the lease payments to correlate with the increased revenue the new scanner would create.
Using data from a different location, the client provided revenue estimates to First American. In return, First American customized a four-year dollar buyout lease package that would have minimal impact on overall cash flow for the business, at an interest rate that bested anything the client’s bank had to offer.
Already aware of First American’s expertise with medical equipment and pleased that First American had taken the time to build a relationship with them, the client moved forward with the lease.
The state-of-the-art scanner was in place when the doors to the new clinic opened, and the client was thrilled with how quickly First American created a solution designed to fit their specific business needs. As patient volume ramps up at the new clinic, the client is already looking ahead to a bright future.
Download the full story