Dental equipment financing in Canada: what lenders look at

Dental equipment is expensive, specialized and essential. A new operatory, a CBCT unit or an intraoral scanner can lift production for years, but few practices want to pay for it out of cash. Dental equipment financing spreads the cost over the life of the equipment, with the equipment itself securing the deal.

What dental practices finance

• Operatory packages: chairs, delivery units, lights, cabinetry and stools, financed together as one project.
• Imaging: digital X-ray sensors, panoramic units and CBCT.
• Digital dentistry: intraoral scanners, milling units and 3D printers.
• Lasers and specialty equipment for hygiene, surgery and cosmetic work.
• Sterilization and infection control equipment.
• Leasehold improvements when you build out a new space or renovate the one you have.

Who lends to dental practices

• Bank healthcare and professional practice teams. Most major banks have groups dedicated to dentists and other health professionals. Rates can be strong, but the process is thorough and usually wants full financial statements.
• Dealer and manufacturer financing. Equipment suppliers often offer financing at the point of sale, sometimes with promotional terms. Convenient, but compare the total cost against independent offers before you sign.
• Independent equipment lenders and leasing companies. Often faster and more flexible, especially for used equipment, newer practices or associates buying in.
• Government-backed loans. The Canada Small Business Financing Program covers equipment and leasehold improvements through participating banks.

What lenders look at

• Production and collections. Lenders want to see steady patient revenue, including insurance claim deposits, in your recent bank statements.
• The equipment. Mainstream brands and current technology are easier to finance than niche or older equipment.
• The practice and the owner. Time in practice, ownership structure, and personal credit. An associate buying into a practice is assessed differently from an established owner.
• Existing debt. Practice acquisition loans and existing leases affect how much more the practice can carry.

Loan or lease?

Equipment you'll use for most of its life, like chairs and cabinetry, usually costs less over time with a loan or buyout lease. Technology that changes quickly, like some imaging and scanning equipment, can suit a fair market value lease that lets you upgrade. Our equipment financing vs. leasing guide covers the trade-offs, and your accountant can tell you which works better for your taxes.

Financing a buildout or a second location

Equipment is usually only part of the cost. Leasehold improvements, plumbing, electrical and IT can add up to more than the chairs themselves. Lenders that know clinics will often finance the full project together, which is simpler than piecing it together from several sources. For acquisitions and partner buyouts, a term loan based on the practice's cash flow is the more common route.

Physio, chiro, optometry and vet clinics

The same approach applies across health practices: treatment tables, shockwave and laser therapy, diagnostic equipment, exam lanes and veterinary surgical and imaging equipment are all financed the same way. See how we work with dental and health clinics.

Getting the best terms

• Get a detailed quote that lists every item, model and price.
• Have your last 3 to 6 months of business bank statements ready. Here's how lenders read them.
• Compare the dealer's offer with at least one independent offer on total cost, not just the monthly payment.
• Ask what happens at the end of a lease before you sign it.

Your advisor can compare dealer, bank and independent options side by side, so you see which one actually costs least for your practice.