Dental Imaging Equipment Financing in Canada

Buying a CBCT system or replacing an older panoramic or digital X-ray setup is not quite the same as financing a dental chair.

The equipment is more technical, the room may need to be ready before installation, software and sensors can be part of the purchase, and the age and serviceability of a used system can matter just as much as the invoice price.

Raymond Leigh helps Canadian dental practices arrange financing for dental imaging equipment through more than 40 lenders and financing partners, generally for transactions from $50,000 to $5 million.

What dental imaging equipment can be financed?

A dental imaging transaction can involve one major system or several pieces of equipment being purchased together.

Examples include:

• CBCT systems
• panoramic and cephalometric systems
• intraoral X-ray units
• digital sensors and image receptors
• imaging workstations
• related computers and hardware
• certain software included with the equipment purchase
• installation-related components
• other dental equipment purchased as part of the same clinic project

A lender is not simply looking at the words "dental equipment" on an invoice. It needs to understand what the assets actually are.

A $150,000 project made up mostly of identifiable imaging equipment is different from a $150,000 project where a large portion of the cost is construction, consulting, design or other soft costs. Breaking the quote into equipment, installation and non-equipment costs makes the transaction easier to evaluate.

Is CBCT financing different from financing ordinary dental equipment?

It can be.

A CBCT system is usually a more specialized purchase than a chair, sterilizer or compressor. The lender may need enough information to understand the machine, the supplier, the installation and the useful life of the asset.

For the practice, the financing decision should start before the machine arrives.

If the vendor requires a deposit, the clinic should determine how that deposit fits into the financing structure before paying it. The same applies if the supplier expects milestone payments before delivery or installation.

A common mistake with large equipment purchases is to negotiate the financing only after money has already changed hands. That can limit the structures available later.

The better sequence is usually:

1. finalize the equipment quote;
2. identify any deposit or pre-delivery payment;
3. separate equipment from installation and other costs;
4. confirm the expected delivery and installation schedule;
5. arrange the financing structure around that timeline.

What matters when financing a new dental imaging system?

With new equipment, the file is usually easier to document because there is a current vendor quote, identifiable equipment and manufacturer or distributor support.

That does not mean every new system is financed the same way.

The lender may still look at the total transaction amount, the practice's operating history, cash flow, existing debt, the equipment, the supplier, deposits already paid and whether the purchase is part of a new clinic, an expansion or a replacement.

An established practice replacing an older panoramic system presents a different financing story from a dentist opening a first location and buying a CBCT system, operatories, sterilization equipment and leasehold improvements at the same time.

The equipment may be similar. The transaction is not.

Can used or refurbished CBCT and X-ray equipment be financed?

Used and refurbished dental imaging equipment may be considered, but the equipment itself becomes more important to the review.

A lender may want more information about:

• year and model
• serial number
• purchase price
• seller
• current condition
• service history where available
• remaining manufacturer or third-party support
• whether parts and service are still readily available
• whether the equipment is being sold by a dealer, refurbisher or private seller

This is particularly important with technology-heavy equipment.

A machine can still function properly while being less attractive as collateral because the manufacturer has moved to a newer platform, parts are harder to source or the software is no longer well supported.

Health Canada maintains the Medical Devices Active Licence Listing, or MDALL, for licensed Class II, III and IV medical devices sold in Canada. When a device falls into one of those classes, verifying current licence information is an important part of purchase due diligence, especially with used or imported equipment.

Does the seller matter?

Yes.

Buying from an established dental-equipment dealer usually creates a cleaner paper trail. There is normally a formal quote or invoice, clear seller information and a defined installation or service process.

A private sale can require more work.

The financing file may need to establish who owns the equipment, the exact equipment being sold, serial numbers, whether there are existing security interests, how payment will be made, whether the equipment will be removed and reinstalled, and who will service it after the sale.

The lender may also treat the value of the equipment differently from the seller's asking price.

A seller asking $90,000 for an older CBCT system does not make it a $90,000 asset from a financing perspective. The age, model, serviceability and secondary market all matter.

Can installation and room-preparation costs be included?

Sometimes, but this needs to be separated carefully.

Dental imaging systems can involve costs beyond the machine itself, including delivery, installation, electrical work, cabinetry or room modifications, shielding, networking, software setup, training and commissioning.

Not every lender treats every one of these costs as equipment.

The practical step is to obtain a detailed quote that separates the imaging system from the work required to make the room ready.

For X-ray equipment, practices also need to deal with applicable radiation-protection and installation requirements.

Health Canada's Safety Code 30 covers dental X-ray systems including CBCT, panoramic, cephalometric and digital imaging technologies. Provincial requirements can add their own installation and operating rules. In Ontario, for example, the Healing Arts Radiation Protection Act treats shielding as part of installation and requires written approval before an X-ray machine is installed.

Those requirements are separate from the financing approval, but they can affect the project schedule.

Can software and training be part of the financing?

They may be included when they form part of a larger equipment package, but the structure depends on the transaction.

A CBCT quote may include the imaging unit, workstation hardware, imaging software, initial licences, installation and training.

A lender generally has a clearer asset position in physical equipment than in a standalone software or training fee. That is another reason the quote should be itemized.

When a clinic asks to finance "a $180,000 CBCT package," the useful question is not only the total. It is what makes up the $180,000.

Can a startup dental practice finance imaging equipment?

A new practice may be considered, but there is less operating history for the lender to rely on.

The file may therefore depend more heavily on the overall strength of the project and the people behind it.

That can include the dentist's professional background, personal credit where relevant, available liquidity, business plan and projections, total clinic budget, lease and location, vendor quotes, opening date and existing financial commitments.

For a startup, it is especially important to look at the whole clinic rather than finance each purchase in isolation.

The CBCT unit, chairs, sterilization equipment, computers and buildout are all part of the same opening plan. Structuring those pieces separately without considering the full budget can leave the owner with financing for the equipment but not enough cash to finish the clinic.

Can several pieces of dental imaging equipment be financed together?

Yes, a multi-equipment transaction can often make more sense than treating every item separately.

A practice might purchase one CBCT/panoramic system, several intraoral sensors, X-ray units for multiple operatories, workstations and related hardware.

The lender can then review one defined equipment project rather than several disconnected purchases.

The important part is that the quote clearly identifies each asset and its cost.

What can slow down a dental imaging financing file?

The equipment itself is often not the problem. Missing information is.

Common sources of delay include:

An incomplete equipment quote

A one-line quote for "dental imaging package" may not be enough.

Deposits paid before the financing is structured

The lender may need to understand what has been paid, to whom and how the remaining transaction will close.

Used equipment without clear identification

Missing serial numbers, unclear ownership or limited service information can make an otherwise reasonable purchase harder to review.

A private seller with existing financing

If there is a registered security interest against the seller or equipment, the parties may need to establish how it will be discharged before funding.

Installation that is not ready

The practice may have financing approval while the room, electrical work, shielding or other site requirements are still incomplete.

Too many soft costs bundled into one number

Separating equipment from construction, software, consulting and other costs gives the lender a clearer picture of what it is financing.

What should you have ready before applying?

For a straightforward dental imaging purchase, start with:

• the vendor quote or purchase agreement
• equipment make and model
• serial number for used equipment where available
• new, used or refurbished status
• deposit requirements
• delivery timeline
• installation details
• seller information
• details of other equipment being bought at the same time

The lender may also request business and financial information based on the practice and transaction.

Dental imaging financing through Raymond Leigh

Raymond Leigh is an equipment-finance brokerage, not a direct lender.

We work with Canadian dental practices buying CBCT, panoramic, digital X-ray and other imaging systems and route financing requests across more than 40 lenders and financing partners.

If you are buying dental imaging equipment, send us the quote and a short explanation of the project. We can review the transaction before the equipment is delivered or a large deposit is committed.