Key finance considerations for your dental chair purchase

funding chairs and dental units

This article is sponsored content brought to you by Credabl.

Funding your chairs and dental units in the right way will give you the balance between cash flow needs and tax effectiveness. Whether your motivation is to improve your patient care, replace old chairs or keep your equipment up to date, asking the right questions upfront will ensure you make a smart investment – and minimise any headaches!

We’ve fielded every enquiry under the sun and successfully assisted dental professionals with their purchases, so keep the following in mind:

1. Are you investing in equipment to generate new income or offer a new service? If you’re upgrading a machine, you’ll know the equipment already drives income in the practice. But if you’re adding a new machine, ensure it’s going to add greater value to your practice. Calculate whether or not the additional fee income that it’s likely to generate will cover the cost of the machine. Of course, there are non-monetary benefits, such as ensuring you have the same, if not better, technology than those in your area.

2. So many chair and equipment suppliers. Who to choose? The best fit is the one you feel comfortable with and will be there when you have a service or maintenance enquiry. Credabl can put you in touch with suppliers that we know have delivered happy outcomes.

3. How will you pay for the equipment? Cash, credit or finance? Equipment finance usually offers structured repayment terms and preserves working capital in the practice. Generally, the repayments (or financing costs and depreciation) can be tax deductible against practice income and at the end of the agreement, there’s a plan in place for you to take final ownership of the equipment. Suppliers may allow you to trade in old equipment before the end of the finance agreement, so you can purchase a new model and stick to the same monthly commitment.

4. How long do you intend to keep the equipment?  Matching loan terms with equipment life span is important as you don’t want to owe money on gear you’ll have to replace. If you’re sitting on equipment that’s near the end of its life, hefty repair costs are often not too dissimilar to the monthly repayments associated with the purchase of replacement equipment.

5. Does the price include GST? The GST component can have an impact by increasing your monthly loan repayments. Whilst you can finance the full amount (inclusive of GST), the alternative would be to tip in your own cash (if available) to cover the GST portion upfront, lowering your monthly loan repayments and total interest cost.

6. When’s the best time to pay for new equipment? Making sure payments are ready to go when the goods are ready to be installed is critical. Every supplier is different so check their settlement terms, and ensure your funds are ready to go when the goods are. Bringing purchases forward to coincide with EOFY, BAS quarter or temporary full expensing can have a significant impact on your cash flow and tax benefits. 

7. Do I get any business perks for my chair purchase? Credabl’s Qantas Business Rewards offer enables dentists to earn one Qantas Point for every dollar borrowed. This can lead to supercharging your points balance to use on flights, upgrades and more. It’s another way that a dental chair purchase can finance growth and reinvest into your business.  

The team at Credabl is always here to support your plans with bespoke funding solutions. You can chat live on our website 24/7 or call 1300 27 33 22.


This article is a guide only and does not constitute any recommendation on behalf of Credabl Pty Ltd (ACN 615 968 100) or any of its related bodies corporate (Credabl). The information in this article is general in nature and we have not considered your personal objectives or financial circumstances or needs when preparing it. Before acting on this information you should consider if it is suitable for your personal circumstances. Credabl is not offering financial, tax or legal advice. You should obtain independent financial, tax and legal advice as appropriate. 

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