Did you know 55% of your peers reported having taken an SBA EIDL loan? PreXion, a leading CBCT technology manufacturer known for top-quality 3D imaging, an unmatched commitment to education, and excellent service, recently conducted a survey to understand the challenges dental professionals face when considering investments in dental technology in 2023. Here are the key survey results:
Snapshot of Survey Results
To set the stage, here is a quick snapshot of the survey results gathered. Below, we offer further analysis of the dental practice loans landscape.
We asked 200 dentists and dental specialists nationwide for the original loan amount on their practice’s SBA EIDL loan. Here are the results:
Less than $100,000 0.92%
$100,000 – $200,000 25.69%
$200,000 – $400,000 44.95%
$400,000 – $1,000,000 22.94%
More than $1,000,000 5.50%
What Prevents Dental Professionals from Investing in Dental Technology in 2023?
We asked survey respondents about the factors that might prevent them from investing in dental technology in 2023. The responses were as follows:
1. Practice/Personal Finances:
Nearly half of the respondents, at 46%, cited practice or personal financial issues as a potential barrier to investing in dental technology. Excessive debt and insufficient practice cash flow were the primary concerns in this category. The high percentage of respondents citing practice and personal finances as a potential barrier underscores the importance of maintaining a healthy financial foundation.
Those with the ability to readily invest in new technologies for their practices maintain low liability exposure, low debt-to-income ratio and high credit scores. In addition, they keep practice and personal finances separate, taking their income via payroll and/or owner’s draw and accounting for them in the practice books. Finally, they have calculated anticipated ROI on technology investments to prepare to more than make back the money spent.
2. Macroeconomic Circumstances:
A significant portion of respondents, 37%, expressed concerns about macroeconomic circumstances, including worries about a potential recession or high-interest rates. This suggests that external economic factors weigh heavily on their decision-making process. Your peers are keenly aware of how economic downturns or unfavorable interest rates can affect their ability to secure practice loans and manage their finances.
At the same time, the savviest of your peers take the stance that practice finances can remain stable regardless of outside circumstances with precision budgeting, bookkeeping and accounting. Most pay an outside expert to support them with these services. To prevent embezzlement, the wisest also keep their own close eye on the books.
3. Other Practice-Related Changes:
A smaller group, comprising 15% of respondents, indicated that other practice-related changes, such as selling their practice, relocating to a new location or upgrading other equipment, could impact their decision to invest in dental technology in 2023. This is especially true for older practices that require renovation or other updates to stay competitive.
The most competitive of your peers are keen on proactively aligning technology investments with broader practice goals year over year. They do so by working with a practice consultant or hiring experts on the team to support them in setting long-term goals and strategically taking action throughout each year to make strides in reaching their objectives.
In navigating the complexities of managing dental practice loans and making investments in dental technology, dental professionals face a range of challenges. PreXion, as a pioneer in CBCT technology, remains dedicated to supporting dental practitioners on their journey to providing top-quality patient care and assistance in helping clinicians grow revenue and realize ROI on their diagnostic investment.
To learn more about how CBCT technology can support in expanding services in your practice, call us today at 855-PREXION or find a product specialist in your area.