How to Choose a Health and Wellness Third-Party Financing Company

Exceptional patient or client care involves one-on-one attention and customized treatment, but an essential part of the equation also includes offering reliable financing options.¹ The cost of health and wellness services can be a concern to many people, so presenting alternative payment options that make the cost of treatments more manageable can improve the patient and client experience, draw in new people and translate to other financial benefits for your practice.²

Many providers decide to use third-party companies for patient financing needs. The only question is: How do you choose a reliable third-party financing company in the health and wellness space?

Strengths to Consider When Choosing a Third-Party Financing Company

A third-party financing company needs to be the right fit for you and your patients or clients, and it’s worth the time and effort to identify what works best for your practice and services. The right financing partner not only helps improves the patient or client experience but can also support the growth and efficiency of your business. As patients often leave health and wellness providers due to bad payment experiences,³ providers are wise to prioritize the following elements that may benefit their practice and their patients or clients when choosing a third-party partner:

• Extensive experience. Work with a patient financing company that boasts extensive experience in the health and wellness financing space and reduces your collection costs while expanding options for your patients and clients.
• Financing customization. The patient and customer financing company should offer multiple customizable financing options to match different needs, and providers should be able to choose plans that work best for their practice and maximize the patient experience.
• Financial transparency. Rely on rates and terms spelled out clearly from the start and prioritize the company’s reputation for a good patient experience.
• Hands-on support. Look for a health and wellness financing company that offers support in the form of provider training, educational resources, tools and team support, so it’s easy for your team members to discuss and promote patient financing services and assist clientele with questions and applications.
• Soft credit check. Patients and clients appreciate a quick and easy application process and the absence of a hard credit check when it comes to prequalification.
• Usage flexibility. For credit options, there is added convenience when patients can use their credit card across a diverse range of health and wellness industries and tailor payment solutions to their unique circumstances, everywhere from the dentist to the vet.
• Wide reach. For a third-party financing solution like a health and wellness credit card, a company with a large network of providers shows they are trusted in the industry. This broad footprint not only makes the card more appealing to potential cardholders, but also helps make participating practices attractive to a wide base of engaged cardholders — helping expand their reach and potential for new business.

Red Flags to Avoid in Health and Wellness Financing

There are third-party financing companies that offer great benefits, but it’s important to read the fine print and understand how the pros and cons balance each other out. Be aware of the following warning signs so your practice and patients do not experience any unwanted financial surprises:

• Advertises low rates but charges more. Some companies may promote low rates but ultimately charge higher fees to the provider, sometimes based on factors like the patient’s credit score or financing terms.
• Lacks experience in the health and wellness space. Ensure the provider understands your industry’s specific needs and patient or client expectations.
• Misrepresents competitors. Watch for false claims that can be easily disproved with a little research.
• Drops patients or clients or withholds funding. Be cautious of financing companies that quickly drop patients or clients from their program and refuse to fund services if a payment is missed or delayed.

These common financing problems affect many providers and, in turn, their patients or clients — many of whom may leave the practice due to a poor experience.³ Vetting and making a careful third-party financing company selection from the start can help you avoid challenges and retain patients or clients in your practice.

Best Practices for Evaluating Third-Party Financing Companies

Care avoidance can be common among patients and clients who feel they cannot prioritize treatment due to cost constraints.⁴ However, that can be addressed when your practice is aligned with the right third-party financing in health and wellness. Thorough research helps ensure you have done your due diligence and selected the best third-party financing company for your practice or business.

The following efforts can help build a foundation of knowledge:

• Ask the sales representative all your questions.
• Check the company’s website for thoroughness and offerings.
• Evaluate how this financing solution will work for you and your patients or clients.
• Explore other options if you encounter a business practice you don’t like.
• Get feedback from other providers who have worked with the company.
• Read their terms and conditions — even the fine print.
• Scour online reviews and check the Better Business Bureau.

While this information-gathering can feel daunting, keep in mind that consumers are eager for solutions to better manage their health and wellness expenses. Lack of flexible payment options can turn into a missed opportunity for patient engagement.

Why CareCredit Is a Clear Choice for Health and Wellness Providers

With more than 35 years of experience, CareCredit is an established and trusted leader in the health and wellness third-party financing space, offering the following benefits:

• A robust provider network. There are over 270,000 providers in the CareCredit network across 50+ health and wellness specialties, including dental, cosmetic, vision, hearing, veterinary and more.
• Easy application process with no hard credit checks. There is no hard credit check for patients or clients when they see if they prequalify for CareCredit. The application is fast, the decision instant and the card can be used immediately if the application is approved.
• It’s widely used. One in 10 residents has or has had the CareCredit credit card,* and more than 270,000 locations are enrolled in the CareCredit network.
• Built to return. Cardholders are offered special financing on qualifying purchases for a wide range of promotional periods from 6 to 60 months. Roughly 45% of CareCredit cardholders who made a purchase during 2023 came back to the same provider or retailer for additional purchases during the same year.⁵
• Maximum transparency for patients and providers. CareCredit merchant fees are clearly communicated from the beginning and kept consistent.
• No annual fee.** Terms and rates spell out the details and there is no annual fee and no down payment unless a provider requires it.
• Quick payment turnaround. Providers are paid directly within two business days. There is no recourse even if cardholders delay or default.^
• Training and tools for your team. From the onboarding process to everything that follows, CareCredit offers training, support and a wealth of tools and resources to providers — from digital to in-office marketing materials and a payment calculator tool to QR codes, custom links and cost worksheets. Educational assets are always available.

Learn more: Get details on how CareCredit works and how it can help your patients or clients manage their health and wellness costs.

Common Services and Products Covered by CareCredit

The versatility of CareCredit is evident in the range of health and wellness providers that accept it, helping patients and clients get the care they want and need. Whether the service is immediate — like professional teeth whitening or something that occurs over time like laser hair removal — there are many ways the CareCredit credit card helps make the pursuit of health and wellness possible for your patients or clients.

Some common expenses cardholders use CareCredit for:

• Behavioral healthcare
• Chiropractic services
• Dental implants and other restorative dentistry
• Eyewear and eye procedures
• Home medical equipment
• Invisalign®, braces and other types of orthodontics
• Labs, medical supplies and pharmacy needs
• Med spa treatments
• Pet care, including medications and treatments
• Porcelain veneers and other cosmetic dentistry
• Surgeries, whether elective or emergency
• Tummy tucks and other cosmetic surgery
• Weight loss products, including weight loss medication

Trustworthy third-party financing services in health and wellness are a valuable resource for any patient or client, and alternative payment methods improve the client experience. Offering this type of service at your health and wellness location can help benefit your patients and your reputation.

Offer Flexible Financing at Your Practice

If you are looking for a way to connect your patients or clients with flexible financing that empowers them to pay for the care they want and need, consider offering CareCredit as a financing solution. CareCredit allows cardholders to pay for out-of-pocket health and wellness expenses over time while helping enhance the payments process for your practice or business.

When you accept CareCredit, patients or clients can see if they prequalify with no impact to their credit score, and those who apply, if approved, can take advantage of special financing on qualifying purchases.† Additionally, you will be paid directly within two business days.

Learn more about the CareCredit credit card as a financing solution or start the provider enrollment process by filling out this form.

Author Bio

Elizabeth Weiss is a freelance writer and editor with more than 20 years of experience in content development for dentistry, orthodontics and cosmetic dermatology. She focuses on making healthcare topics accessible to readers and contributes to many fields, from family and estate law to industrial services and landscape design.

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