Dental equipment financing is a loan or lease for chairs, imaging systems, intraoral scanners, CAD/CAM units, lasers, sterilization equipment and practice technology, usually secured by the equipment itself. Distributor finance programs, banks, SBA lenders and independent equipment lenders all offer it. Henry Schein Financial Services, for example, advertises financing of up to 100% of equipment and technology costs with terms from 1 to 15 years, subject to credit approval.
This guide is part of our dental practice loans hub. It covers where dental equipment financing comes from, loan vs. lease, the tax rules for 2026, what lenders check and how to avoid overpaying. For the general approach healthcare practices take, see how medical practices finance equipment without disrupting cash flow.
How many practices are buying equipment
In the American Dental Association Health Policy Institute’s Q4 2025 survey, 25.6% of owner dentists said they had made major equipment purchases since the start of 2025. Looking ahead to 2026, 8.9% said they were very likely and 24.4% somewhat likely to make major equipment purchases (ADA HPI Economic Outlook, Q4 2025). For most of those owners, the question is how to pay for it without draining cash.
Where dental equipment financing comes from
| Source | What they offer | Pros | Cons |
|---|---|---|---|
| Dental distributor finance programs | Loans and leases arranged at the point of sale, often with promotions | Convenient; can bundle equipment, installation and software | Tied to that distributor’s products; third-party lender terms may not be shown upfront |
| Healthcare practice lenders and banks | Equipment loans, often alongside acquisition or expansion loans | Can combine equipment with a larger project | Rates and terms are rarely published |
| SBA 7(a) and 504 | Equipment as part of a larger loan; 504 for long-life equipment | Long terms; SBA rate caps on 7(a) | More paperwork; slower |
| Independent equipment lenders | Loans and leases for new or used equipment | Faster; wider credit range | Can cost more; read lease terms carefully |
Henry Schein Financial Services says transactions are “subject to the satisfaction of underwriting guidelines, credit approval by third-party lenders,” and that rates and terms depend on the applicant’s creditworthiness (Henry Schein). In other words, the distributor arranges the financing, but a separate lender makes the credit decision.
What you can finance
Most lenders finance the equipment itself and many will include related costs. Henry Schein Financial Services says it handles financing and leasing “for everything from equipment to computer hardware and software to supplies” and lists leasehold improvement and working capital among its programs (Henry Schein). Common items include:
- Operatory chairs, delivery units and lights
- Digital X-ray sensors, panoramic units and cone beam CT
- Intraoral scanners and CAD/CAM milling units
- Dental lasers
- Sterilization and infection-control equipment
- Practice management software and IT hardware
What dental equipment financing costs
Few dental equipment lenders publish rates. Henry Schein’s page describes “low rate, competitive financing” without listing a rate, and says terms run “from 1 to 15 years” (Henry Schein). It also promotes a “Route 66” program: “No payments for 6 months, followed by $99/month for the next 6 months, Followed by level payments!” Deferred-payment programs make the first year easier, but ask whether interest accrues during the deferral and what the total repayment will be.
If equipment is part of an SBA 7(a) loan, SBA caps variable rates at the base rate plus 3.0% for loans over $350,000 and up to base plus 6.5% for loans of $50,000 or less (SBA). The prime rate was 7.00% on September 17, 2026 (Federal Reserve H.15). SBA 504 loans cover machinery and equipment with at least 10 years of remaining useful life (SBA), which fits some large equipment but not most technology.
Ask every lender for the rate or money factor, fees, term, any end-of-lease purchase price and the total cost, then compare them with our equipment loan calculator.
Loan or lease?
| Equipment loan | $1 buyout lease | Fair market value (FMV) lease | |
|---|---|---|---|
| Ownership | You own it; lender holds a lien | You own it for $1 at the end | You can return, renew or buy at market value |
| Monthly cost | Higher than an FMV lease | Similar to a loan | Usually lowest |
| Best for | Chairs, cabinetry and equipment you’ll keep | Equipment you’ll keep but want structured as a lease | Technology you expect to upgrade |
| Watch for | Down payment or collateral terms | Documentation fees | End-of-lease buyout and return conditions |
For a deeper comparison of costs and taxes, see equipment financing vs. leasing.
Tax rules for 2026
For tax years beginning in 2026, the Section 179 expensing limit is $2,560,000, reduced once the cost of qualifying property placed in service during the year exceeds $4,090,000 (IRS Rev. Proc. 2025-32). The IRS also says the One, Big, Beautiful Bill provides “a permanent 100-percent additional first year depreciation deduction for qualified property acquired” after January 19, 2025 (IRS). IRS Publication 946 lists leased property among property that does not qualify for Section 179, and whether a particular lease counts as a purchase for tax purposes depends on its terms (IRS Pub. 946). Ask your CPA how a specific loan or lease will be treated before you sign.
What lenders look for
- Time in practice and cash flow. Established practices usually qualify on tax returns and bank statements; new practices may be asked for projections and personal financials. See equipment financing for startups.
- Personal and business credit. For 7(a) loans of $350,000 or less, SBA stopped requiring the FICO SBSS score on March 1, 2026, and lenders now apply their own credit analysis (SBA).
- The equipment quote. Itemized pricing, including installation, training and software.
- Existing liens. If a practice loan has a blanket lien, the equipment lender may need the first lender’s consent.
Pitfalls to avoid
- Signing at the dental show without comparing. Show promotions can be good, but get at least one outside quote before you commit.
- Letting the lease outlast the technology. A seven-year lease on a scanner you’ll want to replace in four years means paying for two at once.
- Missing the FMV buyout. Know the purchase option and return conditions before signing an FMV lease.
- Ignoring recurring software fees. Subscription and support fees may sit outside the financing and add to the monthly cost.
- Buying without a revenue plan. Estimate how many procedures the equipment adds each month and whether that covers the payment.
Frequently asked questions
Can I finance used dental equipment?
Yes, though fewer lenders offer it and terms are often shorter. See used equipment financing and leasing.
Can a new dental practice get equipment financing?
Yes. Many lenders finance start-up practices, often as part of a larger build-out loan. Expect to provide a business plan, projections and personal financial statements.
How long can I finance dental equipment?
Henry Schein Financial Services lists terms from 1 to 15 years (Henry Schein). SBA 7(a) loans for equipment generally run 10 years or less unless the equipment’s useful life is longer (SBA).
Is it better to lease or buy dental equipment?
Buy equipment you’ll use for its full life, such as chairs and cabinetry. Consider an FMV lease for technology that changes quickly. Your tax situation matters too, so check with your CPA.
Next step
If you have a quote from a distributor and want to see how other lenders compare, our equipment financing page explains how SMB Compass compares offers from its lending partners. For related healthcare equipment, see medical practice financing and cosmetic equipment loans.
Sources
- ADA Health Policy Institute: Economic Outlook and Emerging Issues in Dentistry, Q4 2025
- Henry Schein Financial Services: Dental Equipment Financing & Leasing
- SBA: 7(a) loans
- SBA: Types of 7(a) loans
- SBA: 504 loans
- SBA: Procedural Notice 5000-875701
- Federal Reserve: H.15 Selected Interest Rates
- IRS: Rev. Proc. 2025-32
- IRS: Guidance on additional first year depreciation
- IRS: Publication 946
About this page. Written by Ezra Cabrera, Content Team Lead at SMB Compass. Figures were checked against the primary sources listed above on September 21, 2026; lenders change their terms, so confirm current terms before you apply, and let us know if you spot a figure that has changed. SMB Compass is a business financing broker: we don’t lend our own money, and we are paid by the lenders we place loans with. This page is general information, not financial, legal or tax advice.