What to Do When a Patient Is Disapproved for Financing

Imagine this: You’ve just presented a comprehensive treatment plan. The patient is excited and motivated to move forward. You send them to the treatment coordinator to sort out the finances… only to find out they were denied financing. Now what?

Don’t let that be the end of the story. Here’s how to approach this situation to salvage the case—and prevent future denials from becoming dead ends.

Step 1: Present the Case Properly from the Start

Before financing even enters the picture, it’s vital to follow a strong case presentation sequence:

1. Doctor leads the discussion – with the treatment coordinator present.
2. Clearly explain what’s wrong, the recommended treatment, and why it’s important to act now.
3. Ask the patient directly: “Do you want to do this treatment plan?”
– If they say yes, then you discuss the fees.

This step is critical. Don’t discuss finances until the patient is on board with the treatment. That way, you’re not negotiating with someone who isn’t even committed.

Step 2: Ask How They Would Normally Pay

When you present the cost (e.g. “$12,000”), you might hear hesitation. That’s normal. Follow up with:

“How would you normally pay for something like this?”

You may hear:
– “I could put it on a credit card.”
– “I’d need a payment plan.”

If they want to pay with credit card, confirm they have it with them then send them to your treatment coordinator to get them scheduled.

Using credit card would be ideal over a payment plan. Credit card fees are typically ~3% to you. Financing companies? Up to 15%. So if the patient can pay directly—let them. It saves the practice money and avoids unnecessary denials.

Step 3: If They Need Financing, Qualify Before Applying

If the patient says they can only move forward with a payment plan:

1. Ask what they can afford monthly.
2. Estimate how long they’d need to pay it off.
3. Be upfront:
“We’ll apply for financing, but I want to let you know that approvals aren’t always predictable. Sometimes patients who seem like a sure thing get denied—and others get approved unexpectedly.”

This sets expectations and softens the blow if a denial comes back. You’ve also now identified what they can afford, so you have fallback options.

Step 4: Handle Financing Denials Strategically

Despite your best efforts, denials happen. Here’s how to recover:

Option 1: Revert to Credit Card
If they initially offered to use a card but pivoted to financing, circle back:
“Why don’t we just go ahead and use the credit card like we originally planned?”

Option 2: Use a Co-Signer
Ask:
“Do you have anyone—a spouse, parent, etc.—who could co-sign with you?”

If yes, bring them in and reapply with the co-signer.

Option 3: Modify or Phase the Treatment
If it’s a large treatment plan and no co-signer is available:
– Break the plan into affordable phases.
– Get them started on what they can pay for now.
– Consider alternative options if truly unaffordable (e.g. referral to a dental school).

Why This Works

Too often, practices jump straight to financing without exploring the patient’s other options—and set themselves up for disappointment. A denial then feels like a wall, and the patient walks away discouraged.

By starting with genuine communication, smart qualifying questions, and realistic expectations, you give yourself multiple paths forward.

Final Thoughts

When a patient needs treatment, and they want to do it, don’t let financing stand in the way. Use the steps above to guide them to a solution that works—for them and for your practice.

For any additional questions, give us a call at (800) 640-1140 or visit https://www.mgeonline.com/