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dental practice loans

Where to get dental practice loans

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Ready to expand your dental practice or open a new one? These tips can help you find a loan.

Opening a dental practice is an expensive task. You’ve got to find a space to house your practice, hire employees, outfit your offices and spend valuable time on marketing to get new patients through the door. And if you’re a recent graduate with debt? Things can be even harder.

Fortunately, there are a number of business loan options available to dentists at every stage of practice. Just be prepared to compare a lot of options — when it comes to your practice’s financial future, you’ll want to make sure you get everything just right.
LoanBuilder, A PayPal Service Business Loans

Our top pick: LoanBuilder, A PayPal Service

Customizable business loans with no hidden fees.

  • Min. Amount: $5,000
  • Max. Amount: $500,000
  • One-time fixed fee charged over the life of the loan
  • Acclaimed customer service
  • Requirements: $100,000+ annual revenue, 1+ years in business, 600+ personal credit score

    What financing options are available for dental practices?

    You likely won’t be able to finance your dental practice with just one loan, but you can find a variety of loans that can cover all the expenses that come with running your own business.

    • Specialty lenders. There are lenders that specialize in funding dental practices. By researching these, you can find a partner that understands your business’s exact needs and will be able to work with you for years to come.
    • Commercial real estate. Purchasing an office space may be one of the single most expensive costs to starting or acquiring a practice. Fortunately, financing options are available to help with commercial properties.
    • Business equipment. Furnishing multiple dental suites can be an expensive task, especially when you’re just starting out. A loan for business equipment will allow you to finance and spread out the total cost over multiple years while you work on expanding your business.
    • SBA loan. Many dental practices qualify as small businesses, which means yours might be eligible for a Small Business Administration
      (SBA) loan
      . However, you’ll need an exceptional business plan and good personal credit to qualify for one of these coveted loans.
    • Invoice financing. Get an advance or line of credit on your accounts receivable to bridge the need between the time you invoice patients and when you’re actually paid.
    • General purpose. There are also standard business term loans that can that can be used for just about any legitimate business expense that may fall outside of the specialized options above.

    Top business lenders to compare for dental practice financing

    Rates last updated October 22nd, 2018
    Unfortunately, none of the business loan providers currently offer loans for these criteria.
    Name Product Product Description Min Loan Amount Max. Loan Amount Requirements
    LoanBuilder, A PayPal Service Business Loans
    Customizable loans with no origination fee for business owners in a hurry.
    $5,000
    $500,000
    Annual business revenue of at least $42,000, at least 9 months in business, personal credit score of 550+.
    Credibly Business Loans
    Funding to cover business expenses with daily or weekly repayments.
    $5,000
    $250,000
    At least 6 months in business, average $10,000 in monthly deposits.
    Lendio Business Loan Marketplace
    Submit one simple application to potentially get offers from a network of over 75 legit business lenders.
    $500
    $5,000,000
    Must operate a business in the US or Canada, have a business bank account and have a personal credit score of 560+.
    LendingClub Business Loans
    With loan terms that vary from 1 to 5 years, enjoy fixed monthly payments and no prepayment penalties through this award-winning lender.
    $5,000
    $300,000
    2+ years in business; $50,000+ in yearly sales; No bankruptcies or tax liens; At least 20% ownership of your business; Fair or better personal credit
    OnDeck Small Business Loans
    A leading online business lender offering flexible financing at competitive fixed rates.
    $5,000
    $500,000
    Must have been in business for at least one year with annual revenue of $100K+. Must have a personal credit score of 500+.
    Lending Express Business Loan Marketplace
    $5,000
    $500,000
    At least 3 months in business and $10,000+ in monthly revenue. Your business might also qualify if it's been in business at least 6 months with $3,000+ in monthly revenue.
    Fora Financial Business Loans
    No minimum credit score requirement and early repayment discounts for qualifying borrowers.
    $5,000
    $500,000
    Business age 6+ months. Monthly revenue $12,000+. No open bankruptcies.
    LendingTree Business Loans
    Multiple business financing options in one place including: small business loans, lines of credit, SBA loans, equipment financing and more.
    Varies by lender and type of financing
    Varies by lender and type of financing
    Varies by lender, but you many require good personal credit, a minimum business age and minimum annual revenue.

    Compare up to 4 providers

    What if I want to purchase a dental practice?

    Buying a practice is a viable option for some, but it often comes with a high cost — you’ll be paying for the name of the business and the clients on top of all the equipment and space. Fortunately, there are multiple ways to go about buying a dental practice.

    Financing can come from one of two sources: the seller or a third party. In either case, you’ll need to provide a good deal of information. Your resume, annual income and credit score are just a few of the items you may need. The purchase of an existing practice is also separate from the purchase of upgraded equipment — or real estate, if you plan on buying the location. Talk with your advisers in detail about your wants and needs so that they can assist you with determining what’s feasible.

    What will I need to apply?

    While requirements vary based on the lender, here are few basic details you can expect to provide:

    • Your business plan
    • Personal banking and income documents
    • Business revenue documents
    • Your dental and DEA license
    • A statement of your personal net worth
    • Details of what the loan is for and how much you need

    4 tips to running a successful community dental practice

    dental practice financing

    1. Manage your team well. A huge part of a successful business is a successful team. Keep your team informed, listen to them and have confidence in your decisions as a leader.
    2. Communicate on all fronts. Marketing is important, but so is making sure that your team knows what’s going on. The health of the business is tied to the strength of your communication — and the health of your employees.
    3. Get with the times. Keeping up with social media, new technology and cutting-edge treatments can keep your current patients stay happy as well as draw in new ones.
    4. Maintain relationships. They’re the backbone of your practice. When you’re running a community practice, consider building your connection to that community. Likewise, a strong relationship with your staff can support that connection. Without a strong patient base and a dedicated staff, you probably won’t have a successful community dental practice.

    Source: Patient News

    Business tips to keep in mind

    • Do your research. There are a lot of variables to calculate when you’re starting a business. Do you know what other practices are doing? Do you know which areas need dentists most? These and other factors are important to hammer out before you apply for a loan.
    • Know your loan. Likewise, there are a variety of loan types out there that can be used to fund a dental practice. Know the type of loan you need, how much you need and what you’ll have to submit so you have the best chance of approval.
    • Select trusted advisers. Dental school may not have provided adequate business lessons to run your own practice. Even if you have some business background, it can greatly benefit you and your practice to maintain a working relationship with specialized professionals.
    • Plan, plan, plan. You should talk with the advisers you select, draw up your business plan and continue to refine it. It can also help to make sure your budget is lined up for worst-case scenarios, taking into account any future projects.
    • Pay your bills on time. Keeping up with your finances keeps your overall creditworthiness in check, which can assist your chances of acquiring a loan. Dental lenders understand that you have debt because of school, but they won’t lend to you if you aren’t responsible with your money.
    • Know your limits. Part of budgeting is knowing your limits. Carefully calculate — and recalculate — those financial limits to ensure you have solid numbers on your business cash flow.
    • Maintain your insurance. Your practice largely depends on your well-being for success, and so a big chunk of business lenders will require you to have life insurance and disability insurance. Check for malpractice insurance requirements as well.

    Bottom line

    When you’re looking to start or grow your dental practice, you want the best that you can get. Financing options come in many different forms, with conditions and terms that vary depending on your needs. Carefully research your options based on your business plan, and don’t be afraid to compare your lenders to see what kind of offers you might qualify for.

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