Hearing Aid Financing: Is Your Audiology Office Leaving Money on the Table?
Too often, patients who need hearing aids opt out of treatment or postpone getting devices because of financial difficulties. Your audiology practice could be treating more patients and increasing revenue by offering flexible payment options like pay-over-time financing instead of leaving money on the table by only offering traditional financing methods for hearing aids and audiology treatment.
Collect on Interest
Traditional credit-based financing has interest rates that range from 5-6% APR to north of 30%. The interest goes directly to the lender, costing patients money without any direct financial benefit to your practice. Furthermore, applicants with bad credit or no credit won’t be approved at all, making it very unlikely they’ll proceed with treatment or purchase hearing aids.
Traditional lenders pay your practice immediately, with an upfront payment discount that may fall between 6% and 14%. The lender pockets the difference and charges your patients interest on the remaining loan balance, which they keep. A big benefit of partnering with Healthcare Finance Direct is that you’ll keep these interest payments.
HFD offers a better solution for hearing aid financing, especially for patients with bad credit or no credit. Variable interest rates are calculated by an algorithm that considers the entire credit profile of a patient and not just a credit score. By focusing on the entire credit profile, HFD more accurately predicts risk and scales rates to avoid high interest payments.
You’ll get your payments faster with pay-over-time providers like HFD than with traditional lenders; payments are typically transferred within days. The payments are directly debited from the patient’s account on a monthly basis until the balance has been paid in full.
You won’t have to wait for paper bills to be mailed, processed and paid. You’ll also be able to avoid the headaches of billing and collections when you partner with a modern financing organization like HFD.
Pay-over-time providers are particularly helpful for practices that employ internal finance teams. These employees manage complicated and time-consuming processes like underwriting, loan services, and collections. When these aspects are handled by HFD, your finance team can focus on the handful of cases that require in-depth attention.
A major downside of traditional credit-based lenders is their steep credit score requirements. The credit score cut-off for most lenders is around 640-660. This leaves about half of patients unable to quality for financing and unable to pay for the treatment they need and represents a substantial amount of money your practice is leaving on the table.
As mentioned above, HFD’s advanced algorithm calculates risk more accurately than a simple credit score, allowing us to approve more patients than traditional lenders. More patients accepted with fewer defaults and missed payments means more revenue for your practice.
Working with a pay-over-time provider like HFD allows you to approve more patients, collect on the interest of their loan, receive payments more quickly, and spend less time spent on collections. These factors mean adding a pay-over-time financing option will result in higher revenue. This, in turn, means you can expand your practice, take on more staff, and help even more patients hear the world clearly.
Find out what this means for your audiology practice by checking out our ROI calculator.