What Are Equipment Lease Payments in Dental Practices?
Equipment Lease Payments are monthly or quarterly instalments a dental practice pays to use medical or office equipment without owning it outright. Commonly leased items include:
- CBCT machines
- Autoclaves and compressors
- Practice management servers
- Intraoral scanners and digital imaging tools
Leases help spread large capital costs over time, preserving upfront cash and protecting working capital.
Why Equipment Lease Payments Matter for Dental Practice Owners
Leasing can feel affordable month-to-month — but:
- It creates fixed commitments
- Impacts your 12-week cash buffer
- Affects debt servicing ratios if overused
- Can mask poor long-term ROI on underutilised equipment
Example:
You lease a scanner at £850/month for 5 years.
If it’s only used in 3 cases/month at £150 margin per case, you generate just £450 — creating a £400/month cash gap and a hidden profit leak.
Lease vs Buy: Financial Impact
| Decision | Pros | Cons |
| Lease | Lower upfront cost, tax-deductible, preserves cash | Ongoing payments, higher total cost, tied contracts |
| Buy | Ownership, eligible for Capital Allowances (AIA), improves long-term margin | High upfront cost, possible cash strain |
DentPulse models both scenarios so you know which is right for your practice.
How DentPulse Tracks Equipment Lease Payments
| Feature | Function |
| Fixed Cost Tracker | Categorises leases separately from staff and clinical overheads |
| Cash Flow Planning | Models lease impact on 12-week buffer and MCBTP™ |
| Tax Forecasting | Recognises lease payments as deductible operating costs (not capital) |
| Profit Diagnostics | Flags lease-heavy cost structures dragging down EBITDA |
| Equipment ROI Overlay | Shows whether leased equipment generates enough margin to justify its cost |
DentPulse helps you make equipment decisions with full financial clarity — not just supplier quotes.
DentPulse Tip™
Don’t lease for convenience.
Lease with a margin plan.Every lease should pay for itself in clinical margin — ideally within 60–70% of its monthly cost. DentPulse shows you the true ROI in real time.
Related Glossary Terms
- Capital Allowances – For owned equipment purchases (not leases)
- Fixed Costs– Leases are recurring overheads affecting cash runway
- MCBTP™ – Highlights when fixed costs breach minimum buffer safety
- TreatmentIQ – Assesses whether equipment is used in profitable treatments
- Scenario Planning – Used to model lease vs. buy decisions
Glossary Summary Table
| Term | Meaning |
| Equipment Lease Payments | Monthly or quarterly instalments to use (not own) dental equipment |
| Tax Treatment | Deducted as an operating expense (not a capital item) |
| Financial Risk | Adds to fixed cost base and affects cash buffer |
| DentPulse Advantage | Tracks lease burden, models ROI, and supports lease vs. buy analysis |
