Dental Practice Loan. Definition of Dental Practice Loan.
August 20, 2017. The most successful way to get a dental practice loan is against the assets of the practice or against the sales of the practice.
For this dental practice loan, the dentist only needs the sales of the Dental Practice.
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This loan using dental practice sales can obtain significant funding amounts. Since all dental practices have sales, almost all practices should be able to obtain funding through this program.
Does my particular Dental Practice qualify for a Dental Practice Loan? Basic general guidelines include:
– $7,500 to $250,000
– 3 Months Time in Business
-Approximately 500 + credit score
No application fees or upfront fees.
More difficult transactions are done routinely.
– The financing process generally takes 2 to 5 business days.
If a Dental Practice is profitable and has equipment assets, it is to the Practice’s benefit to use the equity in their equipment for other business needs, rather than to leave the equity in the equipment.
For this program based on the gross sales of the business, the funding is based primarily on the most recent cash flow of the business. The dental practice provides a one page application and the most recent 3 months complete business checking accounts statements. Credit is only a minor factor for this program. Credit bureau scores of 500 and higher are acceptable under this program. In some cases, scores lower than 500 may be accepted.
Once the statement are received, the main numbers that are looked at for each month are the average daily balance, the total dollar amount in deposits per month, the number of deposits per month. The beginning and ending balances are reviewed however they are not main considerations in the review.
May 11, 2017, For immediate release. New Smiles Dental obtains $300,000 dental practice loan for expansion. Dr. Mike Brower announced, “New Smiles Dental will complete it’s 3rd location expansion in the Sacramento, CA area. With this location, we will have a city wide presence in the Sacramento area. This capital line will allow us to add additional staff and expand marketing efforts through 2015. We expect to become leader in Dental in the Sacramento area with future plans to expand into the Ft. Worth area. This line will allow us to achieve these goals.”
Oregon Dental receives a $200,000 dental practice loan against their delivery station and X-Ray units. President, Dr. Stephen Bayan states, “With this funding, Oregon Dental can open a second location in the Portland, OR market and become a leader in both general dentistry and pediatric dentistry. We will work with SmallBusinessLoansDepot in the future as we continue to expand.”
FAQ’s, Frequently asked questions:
Question: How long does the process take?
Answer: The entire dental practice loan takes approximately four to six days from start to finish. Funds are wired into the customers business account on the last day.
Question: What is the amount we can qualify for? Answer: The amount your business has the opportunity to qualify for in this Dental Practice Loan depends primarily upon the time in business, the business credit, the credit of the owner(s), and the amount requested. Other factors may include the company’s cash flow, and bank account statements. All of these factors may not come into play for any given request.
Question: Will a signer, or guarantor be required, or can the request be approved just in the name of the company? Answer: If one signer has 51% ownership, this will be enough in most cases.
Question : What if we are approved and then realize we need more funding?
Answer: If your practice is funded $50,000 and then realizes it needs more, a second dental practice loan segment can be requested. Many dental practices realize that they needed more funding than the original request. In such instances, the practice can simply request another part for whatever they need. This happens in many cases and is common. Many existing customers have two loans on the books.
Question: Is there a minimum loan amount? Answer: The minimum is $5,000
Question: Can I pay this dental practice loan off early and get a discount?
Answer: This will depend on when you pay it off and how your repayment history
has been until the time you paid it off. If the repayment record is clean then a discount
is normally offered. The discount normally is up to 5% to 10% off the total of the payment.
The following video provides further general information on the Dental Practice Loan, including features and benefits such as using the practice’s existing equipment, the $10,000 to $125,000 ranges, time frames to funding, ease of application, how the program can be combined with other funding programs if the dentist wants to get more funding.
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