We imagine you’re here because you’re either looking to expand your dental practice or start a fresh one of your own. Perhaps you’ve just graduated, or maybe you’re even looking to simply start your own practice after years in a salaried position. Whatever the case, the word “loan” can intimidate a lot of people. However, even if you don’t have much experience with loans, they don’t have to be as daunting as you might think.
When it comes down to it, your education in the dental field likely didn’t teach you the essentials of running a healthy practice. And unless you’re sitting on an incredibly large sum of money, you’ll need to look into financial assistance.
However, with the student loan debt for dental students sitting at an average of $287,331, you may be worried about furthering it with business loans. And that’s understandable, but starting a dental practice requires an investment in real estate, equipment, and more.
4 Best Loans For Your Dental Practice
You may be wondering about how you can qualify for a loan and whether you qualify at all. However, there are tons of loans out there to help new or established businesses get financed. Here are our 4 best loans for your dental practice.
4 Best Business Loans For Your Dental Practice
- Non-SBA Loans
- SBA Loans
- Unsecured Business Lines Of Credit
- Equipment Finance
Non-SBA Loans for Your Dental Practice
If you’re looking to start or expand a dental practice, but you’re not ready for an SBA, there are Non-SBA loans available to you. Non-SBA loans provide your practice revolving capital and are excellent for expansion, debt refinancing, working capital, and pay off high-interest debt and increase monthly revenue. With Non-SBA Loans, you can get upwards of $30,000 to $350,000 in funding.
SBA Loans For Your Dental Practice
If you do qualify for an SBA loan, you’ll be happy to hear they are the single best loans for dental practices. They can give you the most money with the best rates. However, you need to have an established practice that’s at least 2 years old in order to qualify. Interest rates will be roughly 6.50% and 8.75%. The application process itself requires a substantial amount of documentation and approvals can take anywhere between 14 – 60 days.
Unsecured Business Lines Of Credit For Your Dental Practice
LOCs work very similarly to traditional credit cards with a specific numbered limit. Whenever you cash within that limit, you only pay back the money used (plus interest) and not the total limit. It’s great for your dental practice since it’s so flexible. LOCs can be used for a variety of unexpected expenses and can be useful for a “rainy day” fund. They’re also separate from your personal credit and help build your practice’s business credit. When it comes to LOCs, you can get funding for upwards of $25,000 – $350,000.
Equipment Financing For Your Dental Practice
Equipment Financing allows you to fund up to 100% on new or used equipment for your dental practice. This can include tools, x-rays, computers, and chairs– but there’s plenty more that can be purchased using Equipment Financing. When it comes to Equipment Financing, there’s little paperwork and you can get easy access to cash since the equipment is the collateral.
The Three Cs For Dentists And How to Qualify For Loans
In order to determine whether you qualify, Finance Factory looks at the Three Cs: Credit, Cash Flow, and Collateral. Although the ideal credit score is 660+, they’ll look at anything between 600 – 800. As for cash flow, they like to see account balances of $1,000 – $5,000, minimum, but also look at monthly and annual revenue. And when it comes to collateral, Finance Factory primarily focuses on providing unsecured loans; however, they will accept collateral. It’s important to know that you only need to provide one of the Three Cs in order to qualify.
Finance Factory Can Help Get Your Dental Practice The Best Loans At Competitive Rates
Interested in finding funding for your business? Finance Factory would love to help! If you’re looking to fund your business within the next 30 to 90 days for $25,000 to $500,00 and have a credit score of 660 or better, let’s chat! Get pre-qualified right now with our quick-step pre-qualification form! And don’t worry, this will not result in a hard credit inquiry of sensitive information. We just want to learn more about you and your business. Click below to get started!