Let's face it, dentistry can be expensive. That's why offering patient financing can often mean the difference between winning and losing a case. Equally important is knowing that the financing plan you're offering matches both the provider's and patient's expectations.
That's why we've put together a quick guide to the major patient financing options currently on the market.
Third Party Financing Options
Third party financing options pay you upfront in cash (net of a transaction fee) while providing non-recourse financing to your patients. With these financing options you aren't in charge of approvals but you have the flexibility to offer a wide-variety of financing plans to your patients. Furthermore, in the event of patient non-payment or default you aren't on the hook (i.e. non-recourse). A a rule of thumb approvals are typically for patients with a 600 FICO score or better, so not all your patients will qualify.
Pros: Upfront payment, non-recourse
Cons: Transaction fees, lower approvals
1. CareCredit
Overview: CareCredit is arguably the most-established provider of patient financing on the market with over 30 years of history. The company is wholly-owned by Synchrony Bank and issues a healthcare specific credit-card that is accepted by over 200,000 providers.
How It Works: Practices have access to a secure web-based portal where they can view their transactions. Patients can apply directly at check-out via their own device or on a provided tablet. For patients, the application takes a few minutes to fill out with approval decisions made within 60 seconds.
Patient Approval Time: 60 seconds or less
Provider Funding Time: 48 hours
Patient Approval Percentage: ~50%
Practice Minimums: None
Terms:
2. Ally Lending
Overview: Ally Lending is another third party financing solution provided by Ally Bank. Ally's pricing is slightly better than CareCredit's and is best for practices with larger financing volumes.
How It Works: Practices have access to a secure web-based portal where they can view their transactions. Patients can apply directly at check-out via their own device or on a provided tablet. For patients the application takes a few minutes to fill out.
Patient Approval Time: 60 seconds or less
Provider Funding Time: 24 to 48 hours
Patient Approval Percentage: ~50%
Practice Minimums: None (although they prefer to work with practices financing $250,000 or more in annual volume)
Terms:
3. Lending Club
Overview: Lending Club is a newer provider of patient financing that is best known for operating an online marketplace for lending products. While Lending Club's provider fees are on the high-end, because they work with a variety of lenders they often have higher patient approvals.
How It Works: Practices have access to a secure web-based portal where they can view their transactions. Patients can apply directly at check-out via their own device or on a provided tablet. For patients the application takes a few minutes to fill out.
Patient Approval Time: 60 seconds or less
Provider Funding Time: 24 to 48 hours
Patient Approval Percentage: Not disclosed
Practice Minimums: None
Terms:
In-House Financing Options
Unlike third party financing, with in-house financing options the provider is responsible for deciding which patients qualify and payments may or may not be guaranteed. Thus, think of in-house financing providers like Denefits and Choice Payments as loan servicing partners and not lenders. Ultimately, with these plans providers are the ones extending credit to their patients while outsourcing the servicing of the loans. In-house financing options are often used in tandem with third party options like CareCredit and others, specifically for patients who don't get approved.
Pros: Higher approvals (provider is decision maker), lower transaction fees
Cons: No upfront payment, payments may or may not be guaranteed
1. Denefits
Overview: Denefits markets their product as "guaranteed customer financing" and is a provider of a creating financing solution that aims to reduce provider transaction fees while simultaneously ensuring payments and reducing patient credit risk.
How It Works: Practices decide which patients to enroll in Denefits and have the flexibility to customize payment plans. Providers and patients have access to a web-based portal to manage payments. No third party approvals needed.
Approval Time: Instant
Patient Approval Percentage: Up to 100%
Practice Minimums: One case per month
Guaranteed Payments: Yes, net of a 10% transaction and after one interest payment has been made
Terms:
2. Choice Payments
Overview: Choice Payments is a servicer of in-house patient financing. Unlike Denefits, Choice Payments does not guarantee payments. However, with Choice Payments providers collect 50% of the interest charged to the patient.
How It Works: Practices decide which patients to enroll in Choice Payments and have the flexibility to customize payment plans, subject to a 20% patient deposit. Providers and patients have access to a web-based portal to manage payments. No third party approvals needed.
Approval Time: Instant
Patient Approval Percentage: Up to 100%
Practice Minimums: None
Guaranteed Payments: No
Terms:
About Us
Zilment is the one stop shop for payment processing where you get competitive quotes from the world's best payment processors. All at zero cost to you. We specifically created Zilment after witnessing first-hand the difficulties doctors and dentists faced when negotiating credit card processing fees. To see how much you could save, click here.