Owning and operating a dental office can cost upwards of $470,000, and acquiring a practice can be as costly as $750,000 in high-priced areas in the U.S., according to Benevis, a dental practice managing company.
This is in large part due to the dental machinery and equipment that is needed to run a successful dental practice, but securing financing can help alleviate these costs.
What Can I Finance with a Business Loan at a Dental Practice
For a dental practice, your use of funds may look different from other small businesses. It’s important to research lenders who understand the unique demands of dentistry.
Working capital loans generally will cover all the details a dentist needs to succeed.
- Acquisition or buy-in of an existing dental practice
- Buying or upgrading dental equipment
- Renovations or expansions of your dental practice
- Employee salaries
- Refinancing debt
When to Know Your Dental Office is Ready to Finance
Most dental practitioners go into the workforce with student loan debt and are offput by the idea of taking out another loan for their practice. But securing financing can give you peace of mind that your equipment is covered, your staff is paid, and your patients receive the care they deserve.
Each lender has its own set of guidelines for borrowers. Often, you can complete a prequalification to find out what financing you may be eligible for. Prequalifying doesn’t affect your credit.
Something to keep in mind is your previous credit history and financial health.
A lender will look for your business’s:
- Cash flow analysis
- Financial statements
Before applying for financing, two essential things you should know are your use of funds, and the amount you need. These are key pieces of information for finding the right lender.