A new patient funding scheme for patients for $,2000 to $20,000 will be launched at the 7th Australian Dental Industry Exhibition in Melbourne.
Already 30 Sydney dentists are ready to sign up for the scheme which could revolutionise the payment of large fees in this country. The scheme is very similar to the one which has run successfully for many years in the US where patients take out a personal loan to pay for expensive treatment with the dentist being guaranteed his fee within 30 days.
The dentist loses 5% of his fee for the service but he doesn't have to worry about billing, chasing bad debts or getting staggered payments (hopefully) over a period of time.
It is being set up by Proline Financial Services. The loans are obtained through Capital Finance Australia which is a subsidiary of the Bank of Scotland. Once the patient's unsecured personal loan is approved, 95% of the fee is paid directly into the dentist's bank account within 30 days.
To become Proline accredited, dentists must be registered and have current Professional Indemnity Insurance.
Proline will take patient applications over the phone and approval is normally made within the hour. Patients can choose a monthly repayment amount. Terms range from 12-48 months and they can also make lump sum payments or payout the loan at any time without penalty. The loans are unsecured with no assets or collateral required. The percentage rate is 12.95% which is fixed for the term of the loan and cannot be varied. The interest rate compares favourably with current bank personal loans and credit card interest rates.
The company says the benefits to the dentist are many. Work that would normally walk out of the door because patients could not afford treatment can now be retained. In-house funding arrangements would no longer be required. For dentists who work on Saturday and in case of weekend emergency cases, the Proline office is open seven days a week.
The company points out that bad debts can be eliminated because credit checks and all responsibility in collecting the money from the patient is undertaken by the financier Capital Finance. The dentist has no involvement in the collection of money and there is no recourse on the dentist if the patient should default.
Monthly statements or payment reminders do not need to be sent out and payment to dentists are directly credited to their banks.
The benefits are:
- Dentist is paid in a timely fashion;
- Hassle free and quick to process;
- Unsecured loan option that doesn't require collateral;
- Attractive interest rate - less than credit cards;
- Non-threatening; and
- Various loan terms with repayments to suit patient's cash flow.
Thursday, 23 January, 2025