How do dentists usually finance new operatories?
Equipment financing for the chairs, delivery units and imaging, over five to seven years at up to 100% of cost, combined with a term loan for the construction and plumbing if the lease is long enough. A mix: equipment financing for the operatory packages and imaging, plus a term loan for the buildout — provided the lease extends well beyond the financing term. Equipment financing for the chairs and imaging over five to seven years at up to 100% of cost, plus a term loan for construction and plumbing if the lease is long enough.
Is dental equipment financing hard to get?
No; dentists are among the most favoured equipment borrowers. A quote, licence and a few months of statements usually produce an approval in two to five business days. It is one of the easiest categories in equipment lending. Licence, quote and bank statements typically yield an approval within days. Dentists are among the easiest equipment borrowers; licence, quote and statements typically produce an approval within days.
What does an SBA loan cover for a practice purchase?
The purchase price, working capital for the transition, equipment upgrades and sometimes the real estate, over ten years (twenty-five for property). Expect thirty to ninety days and extensive documentation. Purchase price, transition working capital, equipment and, if applicable, the building — with ten-year terms for the practice and twenty-five for real estate. The process takes one to three months. Purchase price, transition working capital, equipment and sometimes the real estate, over ten years for the practice and twenty-five for property, in a thirty- to ninety-day process.
Can a startup dental practice get funded?
Yes, through specialised practice lenders and SBA programs, provided the dentist is licensed, the business plan is credible and the loan includes first-year working capital. Startups are financeable via SBA and practice lenders when the plan is solid and the loan carries enough working capital for the slow first year. Startups are financeable through SBA and practice lenders when the plan is credible, the dentist is licensed and the loan includes first-year working capital.
Does a high share of insured patients help or hurt?
Insurance patients provide steady volume but at negotiated fees; lenders like the stability. A strong fee-for-service share improves margin. Either way, collections history matters more than mix. Insured volume reads as stable; fee-for-service reads as profitable. Lenders care most about consistent collections whatever the mix. Insured volume reads as stable and fee-for-service as profitable; lenders care most about consistent collections whatever the mix.
How much can a dental practice borrow?
Published ranges run from about $25,000 to $750,000 for equipment and term products, with SBA loans higher for acquisitions and real estate. Collections history sets the realistic amount. Typically $25,000 to $750,000 across equipment and term loans, with SBA acquisitions and property loans above that. The practice’s collections determine the figure. Typically $25,000 to $750,000 across equipment and term products, with SBA acquisitions and property loans above that; collections set the figure.
Will an associate hire qualify for financing?
Yes — a term loan or line of credit sized to the six- to twelve-month ramp before the associate’s schedule fills, underwritten on the existing practice’s cash flow. A term loan or line covering the ramp period is standard, based on the current practice’s collections rather than the associate’s projected production. A term loan or line covering the six- to twelve-month ramp is standard, underwritten on the existing practice’s collections rather than the associate’s projected production.
Should I lease or finance dental equipment?
Financing builds equity and, depending on structure, may allow accelerated tax depreciation; leases can cost less monthly but leave nothing at the end. Ask an accountant about Section 179 treatment for your situation. Financing leaves you owning the asset and may offer tax depreciation benefits; leasing lowers the monthly cost but builds no equity. An accountant can advise on the tax side. Financing builds equity and may allow accelerated depreciation depending on structure; leasing lowers the monthly cost but leaves nothing at the end — an accountant can advise on Section 179.
What disclosure should I ask a lender for in United States?
California and New York require a standardized disclosure of total cost and annualized rate for most commercial financing. Elsewhere, ask for the same numbers so equipment, term and SBA offers can be compared on one basis. A total-cost and annualized-rate disclosure is mandatory in California and New York; in other states request it anyway to compare offers fairly. A total-cost and annualized-rate disclosure is mandatory in California and New York; in other states request it anyway so equipment, term and SBA offers compare fairly.
