Used and Refurbished Dental Equipment Financing in Canada

Used dental equipment can be financeable, but the transaction usually needs more explanation than a new purchase from an established dealer.

The lender is not only reviewing the dental practice. It is also trying to understand exactly what is being purchased, who owns it, how old it is, whether it can still be serviced, and whether the price makes sense for the equipment.

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

What used dental equipment may be financed?

A used-equipment transaction can involve one major system or a larger package of equipment. Examples include:

• dental chairs and delivery systems;
• CBCT and panoramic imaging equipment;
• intraoral X-ray units and sensors;
• intraoral scanners;
• CAD/CAM mills;
• sterilizers and autoclaves;
• compressors and vacuum systems;
• dental laboratory equipment;
• practice computers and related hardware;
• multi-operatory packages purchased from another clinic or dealer.

The equipment still has to make sense as a commercial asset. A current imaging system with available service support presents a different file from an older machine that is difficult to repair or relies on discontinued software.

Why used dental equipment is reviewed differently

With new equipment, the lender usually has a current vendor quote, a known seller and a straightforward description of the asset.

Used equipment introduces more variables.

The lender may need to understand:

• the year, make and model;
• serial numbers;
• current condition;
• seller identity and ownership;
• service and maintenance history where available;
• whether manufacturer or third-party support still exists;
• software or licence transferability;
• whether the purchase price is reasonable;
• whether any security interest is registered against the seller or equipment.

None of those points automatically prevents financing. They determine how cleanly the transaction can be documented.

Dealer-refurbished equipment versus a private sale

A refurbished unit sold by an established dental-equipment dealer is usually easier to document than equipment being purchased directly from another practice.

A dealer may be able to provide a formal invoice, serial numbers, a refurbishment description, installation support and some form of warranty or service arrangement.

A sale from another dentist can still be workable, but the file may require additional steps to confirm ownership, equipment identification and how any existing security will be discharged before funding.

That distinction is why the seller matters almost as much as the machine.

If you are deciding between a dealer purchase and a direct sale from another business, see Raymond Leigh's guide on dealer versus private-sale equipment financing.

How old is too old?

There is no single age cutoff that applies to every dental asset or every lender.

A ten-year-old chair and a ten-year-old imaging system are not the same risk. The chair may still have a long practical service life, while the imaging system may depend on software, sensors, parts and manufacturer support that have changed substantially.

The useful questions are:

• Is the equipment still supported?
• Are replacement parts available?
• Can it be serviced in Canada?
• Is its software still usable and transferable?
• Does it still have a meaningful resale market?
• Will the equipment likely remain useful through the requested financing term?

Those questions are more useful than treating age as a simple yes-or-no rule.

Software and licence transfer can change the value of the deal

Dental technology is increasingly tied to software.

An intraoral scanner or imaging system can look inexpensive on the used market until the buyer discovers that the software licence does not transfer, a new subscription is required, or the original manufacturer will not support the new owner without additional fees.

Before committing to used digital equipment, confirm what actually transfers with the hardware.

That can include:

• software licences;
• cloud accounts;
• workstation access;
• calibration or commissioning;
• service contracts;
• manufacturer support;
• required subscriptions.

The financing should be based on the real usable package, not simply the physical machine sitting in the seller's office.

Used dental imaging equipment needs extra diligence

CBCT, panoramic and digital X-ray systems deserve particular attention because the machine, software, installation and regulatory environment are connected.

The buyer should know the exact model, serial number, service history and what is required to reinstall the equipment at the new location.

Health Canada's Medical Devices Active Licence Listing, or MDALL, can be used to verify active licences for Class II, III and IV medical devices where applicable. That is especially relevant when the equipment is older, imported or being sold outside the original dealer channel.

For dental imaging specifically, Raymond Leigh's Dental Imaging Equipment Financing guide goes deeper into CBCT, panoramic and digital X-ray transactions.

Does the purchase price matter if the seller and buyer agree on it?

Yes.

The negotiated price is important, but it does not automatically establish the financeable value of the equipment.

A seller may price equipment based on what they originally paid, what they still owe, or what they hope to recover. A lender may look at the asset differently based on age, condition, serviceability and resale value.

That is one reason used-equipment transactions should be reviewed before a large deposit changes hands.

If the price is materially above what the equipment appears to support, the buyer may have to contribute more cash or restructure the purchase.

What about liens or existing financing?

A dental practice selling equipment may still have financing secured against its assets.

That does not necessarily prevent the sale, but the transaction needs a clean path to transfer ownership.

Depending on the province and transaction, a lender, lawyer or other closing party may need to confirm whether a registered security interest exists and how it will be discharged.

The buyer should not assume that possession of the machine proves clear ownership.

Can installation, moving and de-installation be financed too?

Sometimes, but those costs should be itemized.

A used-equipment purchase can include:

• de-installation at the seller's clinic;
• freight;
• installation at the buyer's clinic;
• electrical or plumbing work;
• calibration;
• software setup;
• training;
• room modifications.

Some of those costs may fit within an equipment-financing structure and others may not. The answer depends on the transaction and lender.

A detailed quote is far more useful than one lump-sum number for “equipment and installation.”

What should you collect before applying?

For a used or refurbished dental-equipment purchase, start with the equipment and seller information.

Useful items include:

• purchase agreement or detailed quote;
• seller's legal name and contact information;
• equipment make, model and serial number;
• year of manufacture if known;
• photos where useful;
• service or refurbishment records where available;
• warranty or support information;
• software and licence details;
• deposit requirements;
• removal, delivery and installation plan.

The lender may request additional financial information from the dental practice based on the size and structure of the transaction.

Used dental equipment financing through Raymond Leigh

A used purchase can be a good transaction when the equipment is identifiable, supportable and priced sensibly. The financing file becomes harder when the seller, ownership, service history or software situation is unclear.

Raymond Leigh works with dental practices across Canada and can review used, refurbished and direct-sale equipment transactions before the buyer commits to the purchase.

If you are considering used dental equipment, send the quote or purchase details, the seller information and what you know about the equipment. We can review the transaction and determine the most appropriate financing path.