Resources for dental offices
Cost keeps too many patients out of the chair. You've seen it happen: patients nod along during treatment presentations, then hesitate when they hear the numbers. The problem is simple: dental care relies more heavily on direct payments than nearly any other health service. Three financial hurdles appear repeatedly when we talk with practice owners. High out-of-pocket costs spike even routine procedures. Insurance gaps with annual maximums and exclusions leave patients funding most care themselves. Basic reluctance to take on debt grows stronger when the problem doesn't hurt yet. Patient financing tackles each barrier by swapping one intimidating lump sum for predictable monthly payments. When the numbers feel manageable, hesitation fades and treatment acceptance climbs. Over the next five steps, you'll build a financing program that serves both patients and your bottom line. We'll assess gaps in your current workflow, develop measurable financial goals with legal safeguards, and select the right financing approach and partners. Then we'll implement team training and patient communication, and track ROI through metrics that show real practice growth.
Sep 13, 2025
Step 1: Assess Current Practice Gaps
This section helps you identify where cost concerns block patient care and hurt revenue. You'll gain data-driven insights to prioritize financing solutions. The goal is turning financial barriers into clear opportunities for practice improvement.
Your first move is pinpointing where money worries stall patient care and hurt revenue. According to the American Dental Association, top reasons adults cite for avoiding the dentist include affordability issues, fear of the dentist, and inability to find a convenient location or appointment time. Understanding these patterns helps you build targeted solutions.
Start by examining three critical pressure points in your practice. Treatment acceptance tells the story, especially for high-value plans like implants, orthodontics, or full-mouth restorations. Cash flow reveals the impact through days in accounts receivable, overdue balances, and write-offs. Patient sentiment shows up in comments about cost during consults, online reviews, or post-visit surveys.
Pull fresh data from your practice management software. Compare same-day acceptance rates, average case value, and A/R days for the past six months. Then survey your team because hygienists, assistants, and the front desk often hear price objections first, and their insights reveal patterns reports miss.
Next, map the clinical impact. Each declined crown or delayed periodontal surgery compounds future treatment complexity. Financial friction leads to more than revenue loss because it sets patients up for costlier health issues later.
Use this quick checklist to determine if patient financing should move up your priority list:
Patients frequently decline or defer proposed care
A high share of treatment plans remain incomplete after 60 days
"How much will this cost?" gets asked before clinical questions finish
Team members find it awkward to discuss fees or feel unprepared to present options
Accounts receivable are climbing, or you rely on outside collections more often
If two or more boxes are checked, introducing or expanding payment solutions becomes a priority. With clarity on your current gaps, you can make decisions grounded in real numbers rather than guesswork.
Step 2: Build Your Financial Strategy
This section guides you through setting measurable goals, understanding legal requirements, and establishing success metrics. Your financing strategy should align with practice growth objectives while meeting patient needs. Clear targets make selecting the right partner simple and proving the return even simpler.
Before you compare financing models, decide what success looks like for your practice. Measurable goals provide direction for partner selection and performance evaluation. They also help your team understand how financing fits into broader practice objectives.
Set SMART Financial Targets
Financial targets should connect revenue goals with clinical outcomes to create alignment across your practice. Start with specific, measurable objectives that reflect your current performance gaps. Time-bound goals create urgency and allow for regular progress evaluation.
Consider these four example targets you can adapt to your situation:
Raise same-day case acceptance from 45% to 60% within six months
Increase acceptance of comprehensive treatment plans by 25% over the next year
Cut accounts receivable by 15% in the next 90 days
Boost average case value by 20% within six months
Connect each target to both revenue and clinical outcomes. Lifting same-day acceptance increases cash flow immediately while helping patients start care sooner, reducing complications down the road. Trimming accounts receivable tightens your production-to-collections ratio closer to the 98-99% benchmark that dental practices strive to maintain.
Understand Legal Requirements
Legal compliance protects your practice from regulatory issues and builds patient trust. Different financing models carry different compliance requirements, so understanding these upfront prevents costly mistakes later. Proper documentation and procedures also reduce liability exposure.
In-house financing compliance becomes mandatory once you extend credit for more than four installments. The Truth in Lending Act requires written disclosures and annual percentage rate (APR) calculations. Build documented collection procedures and establish clear credit-assessment processes, including minimum FICO scores, required down-payments, and missed-payment protocols.
Third-party financing compliance shifts legal responsibility to your partner, but you still need clear documentation of all fee structures and patient terms. Review every merchant agreement for hidden fees, retroactive interest clauses, and recourse provisions. Understanding these details prevents surprises that could affect your bottom line.
Establish Success Metrics
Tracking the right metrics helps you measure progress toward your financing goals. Monthly monitoring catches problems early and identifies successful strategies worth expanding. These numbers also provide concrete evidence of financing program value when discussing performance with your team.
Track these core indicators monthly:
Case acceptance rate shows how many patients say yes to proposed treatment plans
Days in accounts receivable measures average time to collect payment
Production-to-collections ratio should target at least 98% of billed amounts collected
Average treatment value per patient indicates whether financing encourages comprehensive care
Patient satisfaction with the financial experience, captured through post-visit surveys
Start with baselines by pulling last-quarter data from your practice management software. Look at case acceptance by procedure type, outstanding balances, and average treatment value. These numbers become your measuring stick once financing goes live.
Share the objectives with your team because when everyone knows you're focused on approving more comprehensive plans or shortening A/R days, staff conversations about financing feel purposeful. Clear goals keep everyone aligned and provide solid proof when you adjust your approach.
Step 3: Choose Your Financing Approach and Partners
This section compares financing models and provides a framework for selecting partners. The right approach matches your risk tolerance, patient demographics, and operational goals. Understanding each model's trade-offs helps you make decisions that support long-term practice success.
Most dental teams choose from three approaches, each with distinct advantages and operational requirements. Your choice affects cash flow timing, administrative workload, and patient approval rates. Consider how each model aligns with your practice's current systems and future growth plans.
Model | Cash-flow impact | Administrative load | Credit risk | Patient reach | Up-front cost to practice |
In-house | Paid as patients pay | High: you handle billing and collections | 100% on the practice | Broad, can flex terms for subprime credit | Minimal fees, but possible bad debt |
Third-party | Paid up front, usually within 24 hours | Low: lender manages the lifecycle | Shifted to lender | Depends on lender; single-lender often narrower | Merchant fees typically 5-15% of procedure value |
Hybrid or multi-lender | Mix of both | Moderate | Shared | Widest approval range thanks to multiple lenders | Merchant fees plus some in-house oversight |
In-House Financing Essentials
Running your own payment plans gives you full control but means you carry every dollar of risk. This approach works best for practices with strong administrative systems and cash flow reserves. You'll need clear policies and dedicated staff time to manage the program effectively.
Build a clear credit-assessment process combining soft-pull credit checks with income verification. Decide minimum FICO scores, required down-payments, and what happens when patients miss a due date. Documentation protects both your practice and creates consistent patient experiences.
The biggest advantage is control because you set the terms, offer 0% for six months on large cases, or create longer plans for loyal patients. Patients sense a personal touch, which can deepen loyalty, and you can approve patients mainstream lenders reject, broadening access to care for your community.
The downsides hit your operations directly because cash flows in slowly, which can strain payroll or supply purchases. Defaults hurt your bottom line without buffer, and staff must juggle payment tracking, reminders, and compliance tasks that pull them away from patient care.
A good rule of thumb: If more than 10% of your monthly production sits in 90-day-plus accounts receivable, tighten credit criteria or layer in third-party support.
Third-Party Financing Essentials
Partner lenders fund the case in full, often the same day treatment starts, freeing you from collection worries. Immediate cash improves liquidity, which ranks as a top reason many dentists adopt third-party plans. This model works well for practices wanting to focus on clinical care rather than financial administration.
The main benefits center on risk transfer and efficiency because non-payment risk moves off your books. Applications are digital and quick, with most taking under a minute at checkout. Your team spends less time talking about money and more time on care.
Partner Selection Framework
Vet each potential partner using four critical evaluation points. This systematic approach helps you compare options objectively and avoid partners who look good upfront but create problems later. Taking time for thorough evaluation prevents costly mistakes and ensures long-term success.
Fees to the practice matter because most lenders charge merchant fees between 1.25-4.5% of procedure value. Patient APR and promotional terms should be transparent rather than including hidden retroactive interest clauses. Approval percentage and credit-score range determine how many patients you can actually help, and software integration plus training support keep the process smooth for your team.
Clarify whether fees are flat or tiered, and when they get deducted
Ask every vendor: "Show me the repayment schedule for a $5,000 implant if it's paid off one day late"
Look for multi-lender platforms that push applications to several lenders, raising approvals across credit tiers
Ask for a live demo inside your practice-management system to confirm staff can complete applications in under 60 seconds
Request a sample contract early and read every fee line, late-payment clause, and recourse provision. Pick up the phone because two minutes with a colleague who already uses the platform tells you more than an hour of sales slides.
Match the model to the goals you established earlier. For example, if your six-month objective reduces accounts receivable by 15%, third-party financing delivers immediate cash and offloads default risk, helping you hit that metric quickly. If the priority is inclusivity, like lifting comprehensive-treatment acceptance among lower-credit patients, in-house or hybrid plans let you approve cases traditional lenders deny.
Step 4: Implement Team Training and Patient Communication
This section covers workflow integration, staff education, and patient-facing communication strategies. Financing becomes valuable to patients only when available at decision-making moments and when your team feels confident presenting options. Success requires both operational integration and communication excellence.
Workflow Integration Points
Place offers where they matter most during key decision moments. Technology integration reduces errors and speeds approvals to under 60 seconds in most cases. Smart practices use pop-up prompts and automated posting to keep the process running smoothly.
Consider these three critical timing points:
During treatment plan presentations: introduce monthly payment options alongside clinical explanations with simple language like "Your crown comes to $1,200, or about $60 a month"
In pre-appointment confirmations: set cost expectations before patients sit in the chair
At checkout: give one last invitation to break the balance into installments
Team Training Essentials
Rolling this out requires focused staff preparation and clear messaging strategies. Role-play sessions build confidence while standard scripts ensure consistency across team members. When staff can explain terms without hesitation, patients feel more confident about their financial decisions.
Frame financing as routine care, not a last resort, because when a treatment coordinator says, "Many patients prefer to spread the cost of their treatment over manageable monthly payments. We have several options that might work for you," it normalizes the conversation and lowers anxiety. Strong communication lets patients focus on health decisions instead of price tags.
Patient Communication Strategy
Create visual and digital reminders that reach patients at multiple touchpoints throughout their experience. Clear, jargon-free materials help patients understand their options without feeling overwhelmed. Consistent messaging across all channels reinforces that financing is a normal part of dental care.
Place financing information in these key locations:
Signage at check-in and clinical consult rooms
Brochures in the waiting area
Financing paragraphs in appointment-confirmation texts or emails
Permanent links in your patient portal and online scheduling pages
Digital prompts integrated with practice software keep the message consistent across channels. On your website, a simple banner like "Pay over time: apply in under a minute during your visit" signals convenience before the patient picks up the phone. Give your team quarterly refreshers through brief role-play sessions plus updates on new plan terms because practices that pair regular training with confident scripts see faster, same-day acceptances and fewer awkward money conversations.
Written Financial Policy
A written financial policy ties everything together and creates consistency across all patient interactions. The ADA recommends spelling out every option in one comprehensive document. Regular policy reviews keep your approach current and compliant.
Include these elements in your written policy:
Third-party loans with specific terms and application processes
In-house plans with clear qualification criteria
Prepayment discounts and early-pay incentives
Insurance coordination and patient responsibility explanations
When financing becomes part of every conversation, you remove cost friction, lift case acceptance, and free your team to focus on delivering great dentistry rather than chasing payments.
Step 5: Monitor Results and Refine Your Approach
This section shows you how to track performance, identify improvement opportunities, and maintain long-term success. Once financing goes live, consistent monitoring shows what works, spots friction quickly, and keeps your team motivated. The metrics you established in Step 2 become your dashboard for measuring both patient care improvements and practice growth.
Monthly Performance Tracking
Consistent tracking reveals which financing strategies drive results and which need adjustment. Monthly reviews catch problems early, before they impact cash flow or patient relationships. The key is watching trends rather than fixating on single-month fluctuations that can mislead decision-making.
Review these indicators every month:
Case acceptance rate shows how many patients say yes to proposed treatment plans, with financing often raising this number dramatically for high-ticket procedures
Days in accounts receivable measures average time to collect payment, and shorter cycles signal healthy cash flow
Production-to-collections ratio should target at least 98% of billed amounts collected
Average treatment value per patient indicates whether financing encourages comprehensive rather than piecemeal care
Patient satisfaction with the financial experience, captured through quick post-visit surveys, catches confusion or stress before it erodes trust
Quarterly Partner Reviews
Review financing performance with your partners on a regular schedule to identify improvement opportunities. Push for better terms when your volume justifies it, and explore new promotional options when current offerings plateau. Multi-lender platforms can expand your approval rates if you notice gaps in certain credit ranges.
Focus on these partnership improvement areas:
Lower merchant fees for high-volume practices
Fresh promotional terms that align with patient needs
Enhanced marketing materials and staff training resources
Wider approval bands for underserved patient segments
Data Analysis and Segmentation
Look beyond top-line numbers to understand what drives your results. Segment data by procedure type, patient demographics, and seasonal patterns to spot trends that inform your strategy. Patient feedback often reveals friction points that numbers alone miss.
Break down your analysis by these categories:
Procedure type performance: implants might show strong uptake while orthodontic cases lag
Demographic patterns: different age groups or insurance types may respond differently to financing options
Seasonal trends: certain times of year may show higher acceptance rates
Patient feedback themes: common complaints about application length or unclear terms
Continuous Improvement Process
Share wins with your team to maintain momentum and reinforce the value of confident financing conversations. Recognition keeps everyone committed to presenting options naturally and empathetically. Regular performance reviews also help you fine-tune your approach as patient needs and market conditions change.
Build these practices into your improvement process:
Celebrate specific wins during morning huddles when metrics improve
Schedule yearly contract reviews alongside your fee schedule updates
Track approval percentages, fee impact, and bad-debt trends quarterly
Adjust the balance between in-house and third-party channels based on patient mix changes
Monitor, adjust, celebrate, repeat. This cycle turns a good financing program into a growth engine for both your patients' oral health and your practice's financial health.
Conclusion: Remove Cost Barriers, Grow Your Practice
Cost blocks care for too many people. About 15 percent of people in the United States who needed dental care did not receive it because of the cost. Patient financing changes this conversation completely because instead of watching patients walk away from necessary care, you can offer manageable monthly payments that make treatment accessible.
Your team gains confidence discussing treatment options, your schedule stays full with committed patients, and your community gets the dental care they need. When staff can focus on these important conversations instead of scrambling to cover operational gaps, everyone wins.
Teero's flexible staffing platform connects you with qualified dental hygienists to fill staffing gaps and keep appointments moving. Sign up for Teero today to keep chairs full and