During the given both an active dental office may have about 20 treatment plans that need some types of ideas, let’s say half of those are approved by care credit. An average finance treatment plan is around fifteen hundred dollars, if this were your practice, you would be looking at submitting fifteen thousand dollars of your business through here critic.
With this approach, you have no risk of loss due to non-payment, but you also have the opportunity to earn interest income ladder, your total is there for fifteen thousand dollars. A Care Credit has various plans charging your office between five and fourteen percent, we use a typical mine person here, therefore it will take care credit one thousand three hundred and fifty dollars, leaving thirteen thousand six hundred and fifty dollars in freezer office.
Now we started off saying that an active dental office has about twenty treatment plans a month, they need some types of financing. So let’s look at an option for the other tip, the tenets Care Credit didn’t want to be the first, in these treatment plans will be fifteen hundred dollars each for a total of fifteen thousand dollars, because it will always be true that some people will not be able to completely fulfill their payment plan regardless of intent.
We must recognize that is a cost of doing business and set aside an allowance, most of the offices that use sterling care experience a non-payment rate below four percent. But for our example, let’s assume we do much worse. Let’s assume a non payment rate of a person that would work out to allowance of twelve hundred dollars, you would have her get to collect interest on those accounts that do pay in full, since they were turned down by carecredit, asking them to pay, say 13.9 percent might not be unreasonable.
In that case, the extra interest earning would be about nine hundred and sixty dollars as a note default rates, and interest rates allowable different by market and state it’s something we can explore further at a later time. Back to our example, taking into account, both the allowance for non-payment and adding back the interest earned your added, is fourteen thousand seven hundred and sixty dollars.
The service fee for sterling here is one point nine five percent of the dollars collected, making your fee two hundred and eighty eight dollars, netting your office fourteen thousand four hundred and seventy two dollars, it’s eight hundred dollars more for your office out of the accounts.