In-house plan vs. third-party financing
With an in-house plan, the practice extends the time and absorbs any losses. With third-party patient financing, an outside lender pays the practice (often less a fee) and collects from the patient. Lending to patients can trigger consumer-credit rules; get advice before charging interest or offering long terms.
Set clear terms
- A deposit before treatment begins
- Short terms — often 3 to 12 months
- Auto-pay on a card or bank account
- Written agreement: amount, schedule, missed-payment steps
- A cutoff point when the balance moves to standard collections
Watch the numbers
Track plan balances separately in your A/R aging. If plan delinquencies rise, tighten deposits or terms before expanding the program.
Run the numbers
Patient or customer charges billed per month.
E.g. your line-of-credit rate.
Days to collect today
46 days
Cash freed at 30 days
$61,644
Yearly carrying cost
$16,200
Expected uncollectible
$9,000
Days outstanding = A/R ÷ average daily charges. A simplified view — insurance timing, payment plans and write-off policy all affect real collections.
Estimates only. Results vary. No guarantee of approval, rates or savings.
Estimates only. Results vary. No guarantee of approval, rates or savings.
Talk with a payments specialistCommon questions
Can we charge interest on in-house plans?
Charging interest or fees can bring consumer-lending rules into play. Talk to an attorney first.
How is this different from practice financing?
Payment plans help patients pay for care. Practice financing is a loan to the owner for the business itself.