The results reveal a 76% increase in the amount of money loaned by directors of dental practices to their own businesses – with some £23.8 million loaned in the last year, up from £13.5 million a year earlier*.

Peter Alderson, LDF’s managing director (pictured) told Asset Finance International that many dentists make these loans in order to invest in equipment to meet demand from their private patients for the latest treatments such as dental implants and cosmetic dentistry.

alderson peter

Peter Alderson

“Dentists are eager to win over private patients in particular,” he explained. “Being able to deliver advanced treatments and a convenient, efficient service in pleasant modern surroundings is essential, and that often means investment is necessary.”

High demand

Alderson added: “Consumers are now prepared to spend more on procedures that are less painful and deliver better cosmetic results. Lasers capable of detecting tooth decay and equipment for tooth whitening are in high demand. Online appointment booking services and email reminders are now virtually compulsory.”

However, LDF believes that dentists paying for new equipment or refurbishments out of their own pockets should be cautious.

Peter Alderson stressed: “Dentists are still facing challenges in accessing funding through traditional methods, so more of them are ploughing their own income and savings into their practices.”

“However, dental practices are very often partnerships, and if a problem arises with another partner it’s risky to have personal savings on the line – not to mention the fact that the money will not be available for personal use in the meantime.”

Although capital holding requirements put in place by regulators are still making it difficult for banks to expand their lending to SMEs, LDF believes that dentists shouldn’t have to resort to lending their own money to the practice as other types of finance are available.

Alderson added: “Alternative lending options such as asset finance can be a big help to dentists who are looking to invest in office refurbishments and equipment, or spread the cost of their tax bills.

“Asset finance is a great option for dentists that are not able to secure traditional lending at rates that work for their businesses, but are eager to invest in the growth of their practice. More and more dentists are taking advantage of that.”

Four-hour acceptances

LDF’s products can help dentists to put investment plans into action quickly, providing some of the quickest decision times in the industry. Unlike other asset finance companies that may take a 24-hour period or more to approve a credit application, LDF can provide brokers with a decision for their clients in an average of just four hours.

Peter Alderson says: “A key advantage of leasing for businesses is the predictability it can offer them. A quick decision and immediate funding means that dentists can focus all their efforts on delivering the services that patients want, rather than waiting with their plans on hold.”

“After a long period of economic uncertainty, businesses are now keen to move forward. We at LDF are delighted to help with that by providing more funding than ever before on our own books.”

LDF, which was acquired by CS Capital LP in 2013, has a long experience of assisting professional partnerships with asset purchase. It currently employs around 130 staff at its NW England head office and boasts that 51% of its employees have been with the company for five years and over.

It is also understandably proud of its customer retention rate which currently sits at between 80 to 85%.

*Source: Companies House data