It’s no exaggeration to say that the coronavirus pandemic could have enormous economic implications for the dental industry. In my current role at Wesleyan Bank, I’ve become acutely aware of the challenges practice owners are currently facing. From cash flow difficulties arising from patients not being able to attend routine appointments while practices are operating on an emergency-only basis, to a shortage of hygiene supplies restricting their ability to carry out treatments.
So, what can dental businesses do in such uncertain times? Although these are unprecedented circumstances, there are some grains of comfort. NHS England has announced that it expects funding for dentistry will continue in line with existing contractual arrangements using assumptions rolled over from 2019/20 where required.
Beyond this, banks and other specialist finance providers are mindful of the predicaments facing dentists and are willing to offer their support. This is particularly reassuring for private practice owners who may not have the comfort blanket of guaranteed income coming in.
To help financial lenders to help you, it’s imperative that you are proactive in contacting them to discuss any cash flow difficulties or trading concerns you have so they can better understand your specific situation.
The earlier lenders are made aware of any potential issues, the sooner they can offer you some form of forbearance, which may include payment holidays, greater flexibility over loan repayment terms or assistance with forthcoming tax bills.
To help financial lenders to help you, it’s imperative that you are proactive in contacting them to discuss any cash flow difficulties or trading concerns you have so they can better understand your specific situation.
You should also keep abreast of legislative changes and claim all the help you can get, such as seeing whether you qualify for the Government’s new temporary coronavirus business interruption loan scheme or research and development tax breaks.
In addition, your accountant can help you to implement daily, short-term and medium-term cash flow forecasts to potentially mitigate the impact of coronavirus on your business’s liquidity.
While everyone is rightly fixated on the present, it’s worth also thinking about investing in the future viability of your practice so that you are in a strong position to rebound once the dust settles on the greatest peace-time economic shock in history.
In the face of such adversity you may want to consider how teledentistry technology, which enables patients to receive a virtual dental ‘check-up’, could be utilised in your practice.
It could help with billing by allowing you to fill gaps in otherwise scarce schedules and prevent patients who are potentially carriers of coronavirus from putting you, your staff and other members of the public at risk. You may also be able to access asset finance loans to help you with this.
The coming weeks and months will be stressful for all. However most, if not all, financial lenders remain committed to maintaining longstanding relationships by supporting their valued customers in these unusual times.