Dental equipment finance for UK practices

What dental equipment finance can cover

Most dental funding conversations start with a supplier quote for tangible, identifiable equipment. Lenders generally prefer assets with a clear description, serial number and resale market, because the equipment itself often forms part of their security. A single chair replacement and a full new surgery schedule are assessed differently, so it helps to know early which you are proposing.

Items that are not freestanding equipment, such as building works, consumables, training packages, software subscriptions and service contracts, are neither automatically included nor automatically excluded. Whether they can sit in an agreement depends on how the quote is itemised and on the individual lender. Ask your supplier to separate each line so the lender can see exactly what it is being asked to fund.

• Dental chairs, delivery units and operating lights
• Intraoral, panoramic and CBCT imaging
• Autoclaves, washer-disinfectors and decontamination rooms
• Compressors, suction and plant
• Intraoral scanners, milling units and 3D printers
• Practice computers and clinical IT hardware

Hire purchase, finance lease or loan

With hire purchase the lender owns the equipment until every required payment has been made and any option-to-purchase fee is paid; only then does ownership pass to the practice. A finance lease gives you use of the equipment for the term without automatic ownership at the end; end-of-term options are set out in the agreement and differ between lenders. A business loan provides money rather than an asset-specific agreement and may suit mixed costs, but it can bring different security and guarantee requirements.

None of these structures is universally cheaper or more tax-efficient. The right choice depends on how long you expect to keep the equipment, how your practice is structured, how you account for assets and what your accountant advises on VAT and tax. VAT treatment in dentistry can be complicated because many services are exempt, so do not assume VAT on equipment or on lease rentals is recoverable.

Regulation and responsibility stay with the practice

In England, CQC Regulation 15 expects registered providers to keep premises and equipment clean, suitable, properly maintained and properly used. Financing equipment does not transfer any of that responsibility to a lender or broker. Scotland, Wales and Northern Ireland have their own oversight arrangements, so check which apply to your practice. Funding is also not accreditation, registration or clinical certification of the equipment or the practice.