Have you ever tried finding what the best option for healthcare financing is?
With so many options out there, it can be easy to get lost in the mess that is medical financing. CareCredit and Denefits are two options that offer financing for patients who need it. Between these two options, they complement each other with the benefits that are offered. These companies are both benefiting people by helping them finance the procedures they need.
While CareCredit helps people get the medical financing they need, people do not always qualify. With Denefits guaranteeing to finance everyone, it works hand-in-hand with CareCredit to help people get the help they need.
What is CareCredit?
CareCredit is a medical credit card specializing in helping patients finance their medical expenses. They offer credit cards specifically and their system works the same as a typical credit card would, providing payment terms and different annual percentage rates when financing.
Who qualifies for CareCredit?
Only people that have high credit scores qualify for CareCredit’s credit card, making it difficult for people who have a poor credit history. They also require an income verification check, so if a patient does not make a lot of money and has a low credit score, lending from CareCredit will not be a viable option for them.
The upside for the Practice
An upside for any practice that uses CareCredit is that they will get all the money upfront. This means no waiting for patients to pay them back, and they can have the money they need to keep operating. CareCredit would then handle all the payments and collect money when needed, so the practice would not have to worry about anything.
The downside for the Practice
A large part of partnering with financing companies is the fees involved for the practices that use their services. CareCredit charges a large transaction fee of up to 15% to those using their services. That can prove to be a burden for those who are trying to keep operating costs down. Not all patients qualify, which creates more difficulties for practices since those people can’t access the financing they need.
Financing Experience for Patients
Like a credit card, missed and delayed payments or payments longer than the promotional period can lead to huge APR fees that apply to the borrowed amount and not just the remaining principle. The financing experience is important to keep patients happy, making bad service reflect negatively on your practice. This would be something to consider when deciding how to best finance your patients.
Just like any other credit card, the practice has to accept CareCredit as a payment method. This is not that different since practices have to accept any other credit card type the same, but will potentially cause issues for those who need quick financing and already have a CareCredit card. This will also cause issues with the financing experience for some who have used CareCredit in the past.
What is Denefits
Denefits is a company offering payment plans for those who need financing to pay for medical procedures and other service-related purchases, but cannot get approved for typical lending options. Denefits is a unique option because it is not a loan or credit card, thus changing the approval process and how lending works. While CareCredit only offers financing options for medical-related procedures, Denefits offers payment plans for medical practices and other businesses in the service industry.
Who qualifies for Denefits financing?
With Denefits, everyone qualifies for financing! This is because Denefits is a payment plan and there is no money being paid upfront by a loan, so there is no need for a credit check or any other traditional loan approval processes. This benefits every customer because it allows them to finance anything they need and be approved immediately.
The upside for the Business/Practice
Denefits become the safety net when people are denied CareCredit. Since everyone is approved regardless of credit score, you can offer to finance to any customer and cover your business so everyone has the opportunity to purchase what they need. This way, you can take in any customer or patient and not worry about them having to pay, because they will always be approved to finance through Denefits. Also, the service fees always stay at 10%, making it lower than what CareCredit has to offer.
The downside for the Business/Practice
Since payments are made over time, the practice only gets paid when patients make their payments. This causes issues for the business since they need the money to operate as soon as possible. If your business has an issue with that, then Denefits could be one of the options you offer customers so you have guaranteed financing for everyone. Denefits does have another program that will reward payments over time and allow the business to keep the interest that is made, making the payment plans advantageous for making some money back from the customer.
Financing Experience for customers
The financing experience with Denefits is easy for the business and the customer. This is partly because there is no accrued interest, making it so the interest amount never changes. This is possible because the interest amount is set at the beginning of the payment plan and never changes throughout the payoff term. This allows the borrower to pay off their debt quickly and save money compared to paying off loans from other investors.
How They Compliment Each Other
Both CareCredit and Denefits are readily available to help people finance their procedures when needed.
CareCredit is a company that is there to help finance medical procedures as best they can for those who need help. They are a good resource for those patients who need it and make it easy for practices since they will get their money upfront. It benefits the patient by getting them what they need and allows the practices to get their money to carry all their necessary costs.
Denefits is a great tool for patients because it allows them to receive the financing they need no matter what. While CareCredit is great and benefits both parties, many do not qualify for the credit card they offer. This is where Denefits can come to save the day and offer those people financing since there is no credit check required and guarantees financing for all.
Start Using Denefits Today
Denefits is easy to use and ready to go for your practice or business today.
It is easy to get your business signed up with Denefits today and begin financing customers. Between approving everyone for financing and taking over your accounts receivable, Denefits is ready to step in and help you with all your financial needs. Check out the Denefits website today to get started! Request a callback today if you want to learn more.