GAP Australasian Dentist Mar Apr 2020

Category 128 Austràlàsiàn Dentist In conversation with Barry Lanesman – the man who changed the climate for a generation ofàAustralian dentists forecasts fair weather ahead AD: Barry, as an overview, what stands out as a turning point in the dental profession over your career? Bà: Definitely the post 1990 recession. Australian dentistry really grew and developed from there in a very positive way. àhe àK is only at that point now. Australian dentists can be incredibly proud of their provision of dentistry in many ways, including the quality of service, patient care and the choices on offer. AD: You’re now based in the UK – do you still have a role in the Australian market? Bà: Yes, à’m in touch with people in medicine and dentistry in Australia, and have retained most of my investments there. à had restraints frommy previous role at BOQà, so the àK provided an adventure over the years these were in place. Dentistry over here (in the àK) is very different. àt’s heavily influenced by a long legacy in àHà which is good and bad. à am a non-executive director now, with Credabl, and it has turned into an even wilder adventure than à imagined, with much opportunity, and many boundaries to push. àn the àK, the opportunity arose to build a dental corporate, Dentex, and we’ve taken that to 68 practices in less than three years, using all my Australian experience and understanding of private dentistry, which is in its infancy here. And with great help from some of the old banking team too! AD: As a dental-trained finance expert, what would you say was the most worthwhile thing that lenders can do for dentists? Bà: Appreciating the value of time to a profession that essentially bills by the hour. àhe salaried banker has no idea of the cost to a dentist in time out to answer questions or fill out forms. AD: Your new role with Credabl, congratula- tions, what attracted you to this company and what’s on the horizon there? Bà: Credabl builds on the vision à always had for a truly independent dental finance company built on values and culture that support and grow dentistry. ànfortunately things happened that prevented this: an unforeseen and disappointing sale of the ànvestec Professional Finance business being one. àhe Credabl guys have shown incredible tenacity at in a tough market, with many barriers to entry, and à am very proud to have been invited to join. AD: You’ve played a major role in changing the Australian dental industry, what was is that drew you toward looking at the dentistry with a financier’s eye? Bà: àt was simply a chance meeting in Melbourne in 1989. à completed an MBA on top of dental training and was intent on not practicing, but looking for a business opportunity. One àaturday evening in Melbourne à met a few dentists who were saying how hard it was to get finance for equipment. à was aware of specialist finance companies in àouth Africa, and thought; “àhat’s crazy! àhe market in Australia is three times bigger! àhere must be an opportunity.” à called a friend à did my MBA with and said, “àet’s start a finance company in Australia.” And so Medfin was born, the rest is history: Medfin, àxperien, ànvestec Professional Finance, BOQà and now, Credabl. AD: At that stage, back in the early 1990’s, what was the state of dental finance in Australia? Bà: àhe banks and finance companies in Australia and other places never realized that dentists were a very low risk. àhey never took the time to understand, and this was the pioneering nature of how we started out in the business – à was always intent on changing this. AD: Can you give an example of how finance operated back then for dentists? Bà: àn those early years we were a broker, and so we needed to deal with the banks, and these are examples of how things went: when a male dentist borrowed, the banks never asked for his wife’s guarantee, but a female dentist required a husband’s signature. àt took quite a fight to get that changed. At that time, many ethnic groups were presenting their family’s first dental graduates but the banks would not lend to them as they often didn’t have assets. We backed many of these graduates, just based on the fact they worked hard to get where they did – that was sufficient security for us. We did 100% funding for young dentists, with minimal paydown, enabling them to buy their own practices. And the result is that the àK the average age for practice ownership is 40, whereas in Australia it is around 30. à believe that difference is something we led, and it has been incredibly beneficial to a generation of Australian dentists. AD: You mentioned the 1990 recession as a turning point. How did things change? Bà: A few things happened. Following the 1991 recession, dentists had to refocus on being seen as consumer orientated, and not just needs based. àhat had to change. àhis shift brought about massive refurbishments of surgeries, and the growth of some very capable companies supporting that. àhe problem for banks was that refurbishment is plasterboard, and of no recoverable value. We supported the dentists by financing many projects without using up any more security than the dentist’s own signature. Purchasing practice premises as a trend was another big change. We funded this with no or minimal deposits, developed àuperfund lending, and made it affordable for dentists to become their own landlords, securing their tenancy and goodwill, and creating long term wealth. We created the conditions for young graduates to get on the property market without a deposit, thereby creating long term wealth for them too. AD: What is the main difference between working with a major lender, and a specialized medical/ dental dedicated finance partner? Bà: à do believe that only a true specialist nanàe T he 1990s, from today’s horizon, were virtual dark ages in dentistry, with tough lending, cold contact with allied industries and the jaws of recession biting – but it takes a problem to create an adventure, and Barry Lanesman found just the kind of trouble he needed when he arrived in the Australian dental industry just as it was facing a crunch. A qualified dentist with a passion for business, Barry dedicated his career to the man beside the chair, instead of the patient in it. In 30 years he became a trailblazer in specialized dental finance, recently taking a board position from his UK base with Australian Credabl, a dental and medical-specific lender, where he plans to continue revolutionizing prospects for dentists. We caught up with him to hear about the journey so far, and the highlights of three decades riding the phoenix of Australia’s reborn dental industry.