Dental Patient Financing: A Strategic Tool for Growth and Case Acceptance

As a dental CPA, we see firsthand how patient financing can impact both the financial health of a practice and the accessibility of care for patients. In today’s economic climate, offering flexible financing isn’t just a “nice to have”—it’s a necessity. But it’s not just about offering financing; it’s about offering the right kind of financing that aligns with your patient base, your services, and your business goals. 

In this article, we’ll explore key considerations around dental patient financing, including regulatory issues, case acceptance benefits, and how to find the right solutions—some of which you may not have heard of yet. 

Regulatory Considerations: Lending Isn’t Just Financial—It’s Legal 

Before implementing or modifying a patient financing program, dentists should be aware of the regulatory landscape surrounding consumer credit and lending: 

• Truth in Lending Act (TILA): If your practice extends credit directly to patients (in-house financing), you may be required to comply with TILA, which mandates clear disclosure of interest rates, payment terms, and fees. 

• Fair Credit Reporting Act (FCRA): If your financing model involves reviewing a patient’s credit report, this law governs how that information is used. 

• State Laws: Several states have specific licensing or disclosure requirements for dental practices offering credit. For example, in California and New York, in-house lending may require additional consumer protection disclosures. 

Partnering with a third-party lender typically shifts regulatory responsibility to the financing company—but it’s still your responsibility to understand how these programs work and what you’re promoting to patients. 

Why Patient Financing Matters: It’s About More Than Money 

According to industry reports, cost remains the #1 barrier to dental care. Financing breaks that barrier. 

• Improved Case Acceptance: Practices that offer patient financing options typically see 20–30% higher acceptance for treatment plans over $1,500. 

• Higher Lifetime Value: Patients who finance their care are often more loyal and return for follow-ups and future treatment. 

• Cash Flow Stability: With third-party financing, your practice is typically paid upfront—no chasing payments. 

Financing empowers patients to say “yes” to comprehensive care instead of postponing or piecing it out due to cost. 

One Size Doesn’t Fit All: Match the Plan to the Patient 

Different patients have different financial profiles. Offering a variety of financing options ensures you’re not excluding a large portion of your patient base. 

• Prime borrowers might qualify for interest-free promotional terms with companies like CareCredit or LendingClub. 

• Subprime borrowers may benefit from options like Sunbit, which has high approval rates and soft credit checks. 

• Younger or cosmetic-focused patients often prefer Buy Now, Pay Later platforms like Cherry. 

It’s not just about offering financing—it’s about offering the right type of financing based on your patient demographics, average case size, and type of dentistry performed. 

Not Just the Big Names: Exploring Lesser-Known but Valuable Options 

While CareCredit is widely known, there are other companies that offer powerful and often more flexible solutions for dental practices. Some to consider: 

• Choice Payment Services: Offers hybrid plans that allow practices to customize payment terms, keep costs low, and choose between practice-funded or third-party-funded loans. 
• Proceed Finance: Tailored for high-ticket cases like implants or full-mouth restorations, with terms up to 10 years.

Final Thoughts: Financing Is a Business Strategy 

Patient financing is no longer optional for most practices. It’s a strategic lever that affects production, collections, patient satisfaction, and profitability. 

As dental CPAs, we help practices assess the financial implications of offering financing, evaluate vendor agreements, and structure in-house options that are both compliant and cash-flow friendly. 

If you’re ready to revisit or expand your patient financing options, we’re happy to review the numbers and share some lesser-known solutions that could better serve your patients—and your bottom line. 

Call us for help evaluating your options.