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Dental payments

Practice financing vs. patient financing: not the same thing

Practice financing is a business loan to the owner — for an acquisition, build-out or equipment — underwritten on the practice's cash flow. Patient financing helps patients pay for treatment over time, with the patient as the borrower. Different borrowers, rules and risks.

Talk with a financing specialist Add up your all-in cost

Estimates only. Results vary. No guarantee of approval, rates or savings.

Side by side

  • Borrower: the practice owner/entity vs. the patient
  • Use: buying or growing the business vs. paying for care
  • Underwriting: practice cash flow and owner history vs. the patient's credit
  • Rules: commercial lending vs. consumer-credit rules
  • Cost to the practice: loan interest vs. a merchant fee on financed treatment

Why it matters

Patient-financing fees reduce what you collect on each case, which affects the cash flow lenders use to evaluate practice loans. Know both numbers when planning an acquisition.

Run the numbers

Blue = you enterGreen = calculatedGray = assumptionAmber/red = check this
$
$

All fees on the statement.

$
$
$
hrs
$

All-in collections cost / month

$8,350.00

Card effective rate

2.60%

Broader cost ÷ card volume

3.34%

Software

$850.00

Staff time

$1,000.00

About $100,200 a year to get paid.

The card effective rate and the broader ratio are different measures — the broader one includes non-card work, so don't compare it to a processor's quoted rate. Uses only your numbers; no vendor pricing assumed.

Build my financing planOr talk it through with your financing specialist →

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 specialist

Common questions

Can Profit Theory help with both?

Your financing specialist can help you plan practice financing and review payment costs. We don't lend to patients.