From 3D Printers to Dental Chairs, Medical Equipment Prices Can be Covered by Tax Effective Finance

Finance Loans & Leasing Options are Available to Keep Practices Running & Expanding

The medical industry sees one of the fastest turnarounds in equipment. This is partly due to equipment being used daily and partly because of regulations and standards. Dentists have a huge array of equipment types they can buy to offer additional services to their patients. However, prices prevent many purchases from being made. For example, an in-house 3D printer can save practices from having to wait weeks to receive dentures back for their patients. In other cases, expanding dental surgeries may benefit from a larger autoclave. But, all this requires a significant amount of working capital and spare cash.

Tax-Effective Finance (Loans and Leasing)

The best and most tax-effective finance depends on the business needs, annual turnover and equipment needed. To be tax-effective, the purchase or lease should help reduce the total amount of tax you pay as a business(*1,2).

Sydney Dental Practitioners and Laboratory Finance and Leasing

Did You Know That Dental Chairs Can Cost Anywhere Between $10k and $43k?(*3)

Amongst our database of clients, we have quite a few businesses from the dental industry. Some provide direct patient care while others provide surgeries with technical services such as 3D printing. The set-up and ongoing costs for dental-related companies would sit many people back in their chairs in disbelief.

As a result, creative financial solutions are often required rather than using all working capital for equipment purchases.

Sydney Dental Practice – Equipment Updates

We were approached by a Sydney dental practice to find a tax-effective way to finance the equipment they needed to update. Dental chairs alone run into many thousands of dollars. That is in addition to sterilisation and x-ray machines, telephone and computer systems, and other equipment they need to run their practices.

Leasing the equipment with options made perfect sense. A tailored financial solution was presented to the practice that same day. Approval was obtained to purchase the equipment only two days later. Funding the equipment was a better choice than using capital that could be used more effectively in other areas of the practice. Furthermore, the equipment attracted depreciation, instant asset write-offs and other tax incentives.

Dental Laboratory – 3D Printer Purchasing

A dental laboratory manufacturing dental implants needed to replace three of their 3D dental printers. These printers were expensive and to add to the costs, they were being imported from the United States. We were asked to supply a financial solution for:

• Import costs including all import duties/taxes.
• Freight.
• Purchase of the printers in US dollars.

We approved funding for the purchase of the equipment in USD. The funding included freight and duties (import and export trade finance). Once the printers landed in Australia, a lease was organised to have the goods funded over three years to coincide with the useable lifespan of the goods.

Using capital expenditure was not an option in either of these cases. The purchases would have decimated the business’s working capital. The combination of tax-effective finance and leasing through our expert team solved both their immediate needs and long-term finances – and both were delighted with the result.

Does your dentist have a brand-new patient chair? You now know that they have either been saving their working capital for some time – or have an experienced commercial finance broker on board.

Work with Trans Pacific Finance Group today. Let us help you provide an even better experience to your patients.

References

*1. Money Smart. Investing and Tax. 2022. *2. ATO. Deductions. 2022. *3. Medical Equipment Services. Dental Chairs. 2020.• Brochure Booklet Printing in Australia