Resources for dental offices
Patients walk in needing care but walk out with just a cleaning. The treatment plan sits on the counter while they promise to "think about it" or "call back next week." Cost concerns stop necessary dental work before it starts. Patient financing options remove that barrier. When you offer ways to spread costs over manageable payments, patients say yes to the treatment they need. Your practice benefits too: higher case acceptance, better cash flow, and fewer conversations about money holding up care. Six financing solutions can transform how your practice handles treatment acceptance. Each option serves different patient needs, from preventive care to major restorative work. Choose the right combination and you'll see more patients moving forward with recommended treatment while your revenue grows consistently.
Aug 27, 2025
1. Short-Term, No-Interest Payment Plans
Most patients can handle a $62 payment better than a $250 bill. Short-term payment plans split treatment costs into three or four automatic payments with no interest, removing the sticker shock that stops patients from moving forward with care.
These plans work best for mid-range procedures between $200 and $1,200. Routine cleanings for uninsured patients, composite fillings, single crowns, and basic periodontal therapy fit this sweet spot. Patients want the work done, but need to spread the financial impact over a few weeks rather than paying everything upfront.
Why This Option Works
Patients appreciate the predictability. They know exactly what they'll pay and when, with no surprise interest charges or fees. The automatic payments eliminate the hassle of remembering due dates or writing checks. For your practice, you receive the full payment over a short period while patients get immediate care.
The psychology matters too. Breaking $800 into four $200 payments feels manageable, even though the total cost stays the same. Patients focus on the monthly amount rather than the procedure's full price, making treatment acceptance much easier.
Legal and Practical Considerations
The Truth in Lending Act keeps compliance simple: four payments or fewer with no interest means no extensive disclosure requirements. Go beyond four payments or add fees, and you trigger full TILA documentation. Most practices stick to three or four monthly payments to avoid regulatory complexity.
Your biggest operational challenge will be managing failed payments and expired cards. Set clear policies about what happens when payments don't go through and how you'll contact patients. Most practices see default rates around 3-5% when they screen patients properly and use automatic payment systems.
Short-term payment plans help improve treatment acceptance for procedures in the $200-$1,200 range. When patients can spread costs over manageable monthly payments, they're more likely to move forward with recommended care rather than delay treatment due to financial concerns.
2. Extended Monthly Payment Plans
Complex treatments like full-arch implants, orthodontics, and comprehensive periodontal therapy often require significant investment. Full-arch implants alone can range from $20,000 to $50,000 per arch, while other major treatments typically fall between $3,000 to $15,000. Extended monthly payment plans spread these costs across 12 to 18 months, making major cases financially accessible for patients who need significant dental work.
These plans work best when patients require multiple procedures or high-value single treatments. Think full mouth rehabilitation, implant-supported dentures, complex oral surgery, or comprehensive cosmetic makeovers. Patients want the work but need time to manage the financial commitment without depleting their savings or maxing out credit cards.
Why This Option Appeals to Patients
Extended plans remove the sticker shock from major dental investments. A $12,000 full-arch restoration becomes $667 per month over 18 months, which feels much more manageable for most budgets. Patients can move forward with treatment they need rather than waiting months or years to save up the full amount.
The predictability matters too. Fixed monthly payments help patients budget accurately and avoid surprise dental bills. They know exactly what they owe and when, making it easier to plan their finances around the treatment schedule.
Legal and Compliance Requirements
Extended payment plans trigger more regulatory oversight than short-term options. The Truth in Lending Act requires full disclosure when you charge interest or extend credit beyond four payments. You'll need to provide written agreements with finance charges, annual percentage rates, and payment schedules clearly stated.
Practices that offer financing more than 25 times per year are considered creditors under federal law, which means additional compliance requirements. Some states add their own rules about staff involvement in financing discussions and required disclosures, so check your local regulations.
Extended plans also carry higher risk than short-term arrangements. You're essentially making loans to patients, which means potential defaults and collection issues. Most practices require down payments of 10-20% and conduct credit checks to minimize risk.
Risk Management Considerations
Extended plans also carry higher risk than short-term arrangements. You're essentially making loans to patients, which means potential defaults and collection issues. Most practices require down payments of 10-20% and conduct credit checks to minimize risk.
Many practices set minimum credit scores around 600 and require automatic payment methods to reduce collection problems. Others limit the maximum amount they'll finance or require co-signers for larger cases.
Extended payment plans can significantly improve acceptance rates for major treatment cases. When patients have a clear path to afford complex care, they're more likely to proceed with comprehensive treatment rather than choosing minimal options or delaying care indefinitely.
3. Third-Party Financing Providers
Third-party financing removes credit risk and collection burden from your practice while giving patients flexible payment options. You receive payment within 24-48 hours, while patients repay the lender over time. This arrangement keeps your team focused on patient care rather than billing and collections.
CareCredit dominates the market with 0% APR promotions for 6-24 months and acceptance at over 270,000 healthcare locations. However, it requires hard credit checks and converts to deferred interest rates (often 26.99% APR) if balances aren't paid during promotional periods. Cherry Finance appeals to patients seeking cosmetic procedures with quick approval processes and transparent pricing. Sunbit works well for patients with lower credit scores, using soft credit checks to achieve higher approval rates for subprime borrowers.
For major cases requiring longer payment terms, Proceed Finance offers terms up to 96 months and LendingClub extends up to 84 months. These options make full-arch restorations and implant cases more accessible by reducing monthly payments to manageable amounts.
Why Patients Choose This Option
Third-party financing offers immediate treatment access without depleting savings or maxing out personal credit cards. The application process takes minutes, and many providers offer instant decisions without impacting credit scores during pre-qualification. Patients feel more comfortable accepting treatment when financing comes from an established financial institution rather than owing money directly to their dental office.
Practice Benefits and Considerations
Practices tmay see improved case acceptance rates on treatments over $1,500 when third-party financing is available. You eliminate accounts receivable management and collection costs while maintaining predictable cash flow through guaranteed payments from approved applications.
However, financing companies charge processing fees ranging from 2 to 8% of the funded amount, which impacts your net revenue. Patient approval rates vary significantly based on credit requirements, with some providers like Sunbit approving 85-87% of applicants while traditional financing companies often approve closer to 40-50% of applications.
Different providers excel in different scenarios. CareCredit works best for routine treatments under $3,000 where patients can utilize promotional periods. Longer-term lenders suit major restorative cases where monthly payment amounts matter more than total interest costs.
4. In-House Membership Plans
In-house membership plans capture patients who skip preventive care due to lack of insurance coverage. Rather than offering discounts that erode margins, membership plans create predictable revenue streams while encouraging regular dental visits. Patients pay an annual fee upfront and receive preventive services plus discounts on additional treatments.
These plans work particularly well for practices with high percentages of uninsured patients or those seeking to reduce dependence on insurance reimbursements. Unlike insurance plans that involve claim submissions and reimbursement delays, membership plans provide immediate payment and eliminate write-offs from insurance fee schedules.
Structure and Pricing Models
Most practices structure plans around annual fees ranging from $300-$400 per adult, with family discounts available. Plans typically include two cleanings, exams, routine X-rays, and percentage discounts (10-25%) on restorative work. Some practices offer tiered options, such as a basic preventive plan and a comprehensive plan that includes periodontal maintenance or additional X-rays.
The psychology of prepayment creates commitment. When patients invest upfront in their dental care, they're more likely to schedule and keep preventive appointments rather than postponing visits. This predictable appointment flow helps practices maintain steady hygiene production and identify treatment needs early, when interventions are less complex and expensive.
Legal and Compliance Considerations
Most states regulate membership plan terminology and require specific disclosures. Plans must be positioned as discount programs rather than insurance to avoid regulatory complications. Written agreements should clearly outline included services, excluded treatments, discount percentages, refund policies, and membership duration.
Post membership agreements on your website and ensure patients sign contracts before receiving services. Some states require additional disclosures about transferability, cancellation policies, and geographic limitations if patients move. Check your state's insurance commissioner guidelines before launching any membership program.
5. Medical Credit Cards and Specialized Lending Products
Medical credit cards like CareCredit can eliminate collections risk while providing patients immediate access to treatment financing. The lender pays your office within 48 hours, then handles all patient billing and collection activities. This arrangement removes accounts receivable management from your practice and transfers default risk entirely to the financing company.
CareCredit provides 0% APR for 6, 12, 18, or 24 months on qualifying purchases of $200 or more, but uses a deferred interest structure that's fundamentally different from standard credit cards.
The Deferred Interest Trap
The most critical distinction involves deferred interest mechanics. If patients fail to pay the entire promotional balance by the deadline, CareCredit charges its standard 32.99% APR retroactively from the original purchase date. A patient owing even $50 after a 12-month promotional period gets charged interest on the full original amount for the entire year.
This differs entirely from actual 0% intro APR cards, which only charge interest on remaining balances going forward. The deferred interest model can generate hundreds or thousands in unexpected charges, making it potentially more expensive than higher-rate installment loans that patients pay off gradually.
Practice Benefits and Costs
Medical credit cards provide revolving credit that patients can reuse across multiple appointments without reapplying. This benefits practices providing comprehensive treatment over time, as patients can finance additional work as needs arise.
Processing fees typically range from 1.5–3.5% of transaction amounts, with shorter promotional periods costing less than longer terms. These fees reduce net revenue but eliminate bad debt risk and collection costs entirely. The trade-off works best for higher-value cases where fee costs are justified by risk transfer benefits.
Your staff must clearly explain promotional terms to maintain patient trust. Patients need to understand that missing the payoff deadline triggers retroactive interest on the full original balance, not just remaining amounts. Provide written summaries stating: "Interest-free for [X] months. Any remaining balance after this period incurs [X]% APR on the full original amount from purchase date."
6. Flexible Spending Accounts (FSA) and Health Savings Accounts (HSA)
FSAs and HSAs provide significant tax savings on dental expenses by allowing patients to use pre-tax dollars for treatment costs. These accounts can save an average of 30% on eligible dental expenses, making procedures like crowns, implants, orthodontics, and periodontal surgery substantially more affordable for patients.
Most dental treatments qualify as eligible medical expenses under IRS guidelines, including preventive care, restorative work, oral surgery, and orthodontics. However, purely cosmetic procedures that aren't medically necessary typically don't qualify, making it important for patients to understand which treatments are covered before scheduling.
Key Differences Between FSAs and HSAs
FSAs operate on a use-it-or-lose-it basis, with annual contribution limits of $3,300 per employer. Money not spent by the plan year deadline (typically December 31) is forfeited, though some employers offer brief grace periods. This creates urgency for patients to schedule treatment before year-end.
HSAs function differently, offering permanent savings that roll over indefinitely and grow tax-free. Unlike FSAs, HSA funds never expire, making them ideal for patients planning future dental work. Patients must have high-deductible health plans to qualify for HSAs, but the long-term savings potential often outweighs this requirement.
Strategic Timing for Maximum Patient Benefit
FSA timing requires careful planning. Patients should schedule major treatments in the fourth quarter to use accumulated funds before expiration. For multi-phase treatments like full-mouth rehabilitation, consider splitting work across December and January, allowing patients to use two years of FSA contributions for a single comprehensive case.
HSA strategy focuses on advance planning rather than deadlines. Encourage patients to increase HSA contributions months before planned major treatments, giving their tax-free savings time to accumulate. This approach works particularly well for elective procedures like orthodontics or implants, where patients can plan treatment timing.
Administrative Best Practices
Your front-desk team plays a crucial role in HSA/FSA success. Confirm account acceptance during treatment planning, not at checkout when it's too late to adjust payment methods. Provide detailed receipts with CDT codes, as most FSA/HSA administrators require specific documentation for reimbursement.
For direct payment, ensure your payment processing system accepts HSA/FSA debit cards. When patients pay out-of-pocket for reimbursement, provide itemized statements immediately so they can submit claims without delays. Clear documentation reduces claim rejections and improves patient satisfaction with the process.
Integrating FSA/HSA discussions into treatment presentations demonstrates value beyond clinical care. When patients understand they can save 20-30% through tax advantages, treatment acceptance often improves significantly without requiring practice fee reductions.
Build Trust Through Flexible Financing
Flexible payment choices drive practice growth by removing cost barriers that prevent patients from accepting treatment. When you offer comprehensive financing options—short-term plans, extended payments, third-party lending, membership programs, medical credit cards, and FSA/HSA guidance—you address different patient needs while maintaining steady cash flow and building lasting relationships.
The right financing options mean nothing without the right team to present them effectively. Staffing gaps can derail patient conversations and delay treatment acceptance when key team members are unavailable. Teero connects dental practices with qualified hygienists who understand patient care and can help maintain consistent service during busy periods, staff transitions, or unexpected absences. When your hygiene schedule stays full, patients get the preventive care they need and financing conversations happen on schedule.
Start building your comprehensive patient financing approach today, and ensure you have the team coverage to support it. Track acceptance rates, monitor patient satisfaction, and adjust your offerings as needed.
Sign up for Teero to discover how flexible staffing solutions can support your practice growth alongside your new financing strategies.