financing for dentists

Discover Financing for Dentists: Proven Loans for Dental Practices


No matter what stage of your dental career you are in, dealing with money can be terrifying. Financing for dentists can be particularly fearsome. If you are thinking about taking out a loan to expand your practice, you might feel lost. If you already have a student loan debt, you might wonder if it is a good idea to add more on top. How are you supposed to know which dental practice loans make sense?

Read on to learn more about dental practice loans and how they can help your dental office to succeed. We are here to guide you.

Dental Practice Loan - What You Need to Know

In our modern-day, the average student loan for dental students was around $300,000 in 2020. Student debt drives many a new dental practice away from financing options that could help to expand their existing practice from a small business to a booming office. A loan does not have to be scary for your dental office.

Keep reading to learn about everything you should know about loans in the dental industry. Whether you are making the long-term investment of funding your new office or starting from the ground up, there is a lot to consider when looking to expand your future.

What Are Dental Practice Loans?

If you are new to the world of dental practice loans, you might wonder what these funds are and how they contribute to your office. In short, loans are a fixed amount that comes from a lender so a dentist can expand their business. The loans go towards many things, including:

  • Equipment
  • New business investments
  • Patient acquisition

There are many actions a dentist can take with a loan to increase cash flow.

Whether you are straight out of dental school or expanding an existing practice, dental loans help. You can create a whole new business if you are smart about your plan and how you implement money into your dental business plan.

Types of Dental Equipment Financing

Dental equipment financing is a type of loan that allows the purchase of equipment upfront. These pieces are then paid off over many months unless you can pay for the entire thing right away. Depending on your credit score, you might be able to get all equipment financed. If your score is low, you might receive partial financing.

Many pieces fall under equipment loans for dentists. If you are looking to grow your business or establish a plan with new investments, financing one of these new dental pieces is an excellent option for you.

Some examples of dental equipment you can finance include:
  • Dental Chairs
  • Dental Lights
  • Dental Lasers
  • Sterilizations Tools
  • Hygiene Tools
  • 3D Scanners

All of these are tools that you can invest in with loans. Dental equipment financing is beneficial for the growth of your business. Your dental practice will grow well thanks to the upgrades it experiences.

How Can New Equipment Elevate Your Dental Practice?

If you wonder if the loan amount is worth it for new equipment, the answer is a resounding yes. The purchase of new equipment can elevate your dental practice and take it to the next level. Any office should look to a lender for equipment if they want a shot at:

  • Attracting new customers.
  • Ability to perform new procedures
  • Establishing returning customers
  • Setting a good reputation

An office space with new equipment is critical to customers.

Patients understand that quality equipment means excellent care from providers. If you want to be one of the dental businesses known for giving patients top-notch dental work, new equipment is needed to push your business to the next level.

Why Does State of the Art Equipment Matter to Patients?

State-of-the-art equipment matters to patients because it makes them feel comfortable in the space. Patients are more likely to feel they are receiving quality care from a dental office if the equipment is updated.

For loyal customers, upgrades to your dental practice are an absolute must. This action will keep your dental office in business as time goes on and equipment advances in American dental services. Business owners should always be on top of new dental equipment and techniques which may come to the market.

dental equipment financing

Leasing Dental Equipment

If you do not want to make payments until your equipment is fully covered, you can lease dental equipment instead. Leasing means renting the item owned by someone else rather than paying for it over time. Some may not have the funds to do that for an extended period.

Leasing involves signing a contract, so take care to read it before you commit. You are liable if anything goes wrong with the item.

Dentist Business Loan Uses

If you get a dental practice loan, There are many things you can use it for with your dental business. There are many financial choices you can select from to grow your business in the best way possible.

Some of the ways that you can use your dental business loans include:
  • Creating a state-of-the-art-space
  • Growing your practice
  • Starting a new practice
  • Purchasing real estate
  • Upgrading and purchasing equipment
  • Overhead costs and staffing
  • New patient acquisition

How Can Dental Practice Business Loans Help You?

Your dental practice can benefit from business loans by helping to form the future of your dental practice. Money can go a long way towards new advertisements bringing in patients, making your space look nice, and improving the overall real estate.

Dental practice loans will give you the credit you need to take your business to the next level. Even with student loan setbacks, you will be able to take your business forward.

How Do You Finance a Dental Practice?

To finance a dental practice, you will first need to find lenders. The options can include places like Bank of America, which has a history of assisting dentists with financing their practices, but with them, you have to have stellar business credit and history. You can also turn to more private lenders depending on your qualifications.

Once you have a lender, you send over the required documents and get started. You can also study rates and other specifics that come with the plan you have chosen.

Choosing the Best Dentist Business Loan Program

When selecting a dental loan program for practice solutions, there are a few things you should keep in mind. Some loans might not be worth it for your business depending on these criteria.

When selecting a term loan, make sure you keep in mind:
  • Funding time: How long will it take for you to receive the money? What are the rates and terms?
  • Term Length: How long will it take you to pay off what you owe?
  • Customer Service: Are they a good and reputable company to acquire term loans from?

Keeping these in mind will help you choose the best dental business loan program for your dental practice.

Selecting a quality funding lender is critical for your practice. Researching those that can give you the maximum amount you qualify for and from there taking what you need for your plans.

Pros and Cons of Financing For Dentists

Before financing, there are a few pros and cons you should consider. Dental equipment financing is still a purchase, after all. It can impact both your personal and business life. Making this investment for your practice is not a small decision but let us help you make it a wise one.

Some of the pros that come with financing include:
  • Potential expansion for your business
  • Ability to acquire customers
  • Upgrade of available services

These are a few of the pros that come with using financial loans to help your practice.

On the other hand, some of the cons that come with financing include:
  • Loss of money
  • Potential for debt
  • Some loans come with fees, like application fees and origination fees.

Above are just a few of the cons associated with financing for dentists. You need to ensure you can afford to finance before you do so.

Dentist Business Loan Options

Read on to learn about the many different loan options available to you if you need working capital for your dental business. All of these loans have different qualifications. Our goal is to help you understand them better so you can make the right choice of loan which best suites your practice.

Health Care Group Loans

The Health Care Group Loan is a loan for Licensed Professionals, and there are a few requirements you must hit to get dental practice financing.

Some of the qualifications you must meet for these dental practice loans include:
  • Must be a licensed professional
  • 660 FICO minimum
  • 75k minimum personal income requirement for the personal guarantor
  • Minimum time in the business of 1 Year; however, they can entertain W2 and 1099

All of these items are looked at while applying for a health care group loan. Keep reading to learn about other types of loans you can get for dental practice financing.

Working Capital Loan

A working capital loan comes into use to finance the operations that happen on a day-to-day basis in your practice. This can include paying your staff, paying rent on the building, Back taxes and other items critical to the existence of your business.

This type of loan is ideal for your business if you need help with the daily work, rather than equipment. It is especially beneficial if you have seasonal times with more customers than other points in the year to get you through until the income goes up again. Working capital loans are excellent for uncertainty in a business. Lines of credit are similar to this.

Acquisition Loans

An acquisition loan is given to a company to either acquire another company or get an asset for finance purposes. This loan is offered in a short window of time.

These are necessary if you do not have enough liquid capital to invest in the asset without lenders. Acquisition loans are ideal if you need one item for your business you cannot afford it.

SBA Loans

An SBA loan, or Small Business Administration Loan, provides financial solutions to small businesses that can’t receive funding from a bank.

To achieve SBA loans, your dental practice needs:
  • To be for-profit
  • To have business owners who have invested equity
  • To be based in the US
  • To meet SBA size requirements
  • To have tried and failed to get the loan somewhere else besides SBA

Meeting these Small Business Administration requirements means you might be able to acquire this loan for your dental practice. From here, you can apply for financial solutions for your business. This credit can help your small business substantially.

Financing Options For Dentists

There are many financing options for dentists. These allow your business to succeed in ways that it otherwise would not be able to.

Read on to learn more about each financing option available to you. Each form of credit can assist your dental practice differently.

Equipment Financing

Equipment financing allows the coverage of equipment. You then pay this off in a loan over time, which makes the process quick and easy.

As discussed above, equipment financing is a great way to take a line of credit and upgrade your business. Dental equipment financing attracts new and old customers alike.

Account Receivable Financing

Account receivable financing takes invoices and turns them into working capital within 24 hours. This action rids your business of delayed payments that might impact both you and your patients.

This financing helps to clear out any backlog that might occur with money in your business. It is easy and painless for your dental business to adapt once it receives approval for this dental office loan.

How to Apply for Dental Equipment Financing?

If you want to apply for dental equipment financing, you might wonder how to go about this process. It is simple, even if you have a small business and do not know where to get started.

To apply for dental equipment financing, you should:
  • Find a lease or loan you want
  • 5 minute application process
  • Get connected with a professional
  • Wait for approval

These steps will allow you to get your foot in the door for dental practice leasing.

If you accepted the approval you receive, you will have the green light to use your dental practice loans for sparkling new tools. Utilize it to make your practice as up to date as possible, investing in practice solutions that will stick around for the long haul.

How to Qualify for a Dental Practice Loan

If you decide to get a loan for your dental practice, you might be curious about how you can qualify. Before applying for a business loan, you should take the following four steps to ensure your dental practice loan is approved once you apply.

To receive the loan:
  • Be aware of your credit score and have a good history of paying on time
  • Make sure you know what you want to use the dental practice loan for
  • Create a strong financial team for your working income
  • Know the difference between banks

These steps will keep you on track and help you get a loan.

Despite common belief, business loans are hard to acquire as a dentist. Do your research before you take one out yourself. Showing low risk to a lender is the best way to ensure you get the money for your place of work. The more stable the business the better the approval you receive from the lenders and possibly lower fees.

What Are the Rates on Loans for Dental Practices?

Interest rates on loans are also vital to know, as these can affect the cash flow of your small business. Interest rates vary by loan and credit.

Typically, interest rates fall between 6%-10%. You will find that the interest rate is different depending on the type of loan you get and how quickly you can pay it off.

Can I Qualify for a Dental Practice or Equipment Financing With Bad Credit?

When attempting to qualify for dental practice or equipment financing, your debt will be taken into account along with whatever credit is available from your business and personal life. If you have bad credit, you might wonder if you can still qualify for financing. Does a bad relationship with payments on a credit card ruin your chance to qualify?

Having bad credit does not necessarily mean you cannot get financing. Whether or not your low credit qualifies depends on:

  • Why your credit is not very good
  • Who the lender is

These two factors will help determine if you can participate in financing options for your space.

You should learn about your lender’s requirements to see if you can still qualify for financing options. From there, you can talk with them about your options and determine what someone in your position can do about their credit. In the meantime, you can improve your credit score as much as possible to solidify the financing for your business plan.

So…What do you think? 

We want to hear from you.  What do you think of this article and was it helpful in your search for equipment financing? 

Let us know by leaving a reply below.   Feel free to share this article on your social media. 


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One Comment

  1. The Finance guy

    Great Information in regards to funding my dental practice I will definitely use some of the tips in this article

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