Dental Practice Loan

Dental-practice-loanTo find an asset based Dental Practice Loan, go to Small Business Loans Depot, which offers dentists funding based on practice assets, or based on the general sales of the practice, which allows the practice to secure financing.   Go to our features and benefits section and learn how this asset based program or gross sales program can solve your company’s cash flow needs.

Complete a Dental Practice Loan today, contact us Toll Free at: 855-787-1113 or go to the “Application” link above and complete the application, or go to the “Contact Us” link and complete the contact us link

For this dental practice loan, the medical practitioner can use equipment assets, so almost all Dental Practices pre-qualify for this Dental Practice Loan. Assets that can be used include Delivery stations, such as Pelton Crain Chairs, X-ray units, patient stools, autoclaves, hand pieces, vacuum pumps, dental curing lights, compressors, alloy grinders Autoclaves, stools, cabinetry, and more.   After reviewing the asset list that can be used, the dentist will know which pieces of equipment can be used and understand the requirements and benefits of both the asset based program and the gross sales financing.

A dental practice can obtain significant funding amounts through the combination of both programs because they are using both their sales and their equipment assets.  Many practices obtain over $100,00 through both of these funding programs and as much as $150,000 to $250,000.  Since all dental practices have sales and equipment, all practices should be able to obtain funding through both of these 2 programs.

Ask us a question. Click here and a representative will answer your questions

Does my particular Dental Practice qualify for a Dental Practice Loan? Basic general guidelines include:
- $7,500 to $125,000
-1+  Years Time in Business
-Approximately 625 + credit score

Complete the “Contact Us” Mini App on the menu above. We have a team of industry specialists with significant experience completing a Dental Practice Loan.

Features include:

This financing, based on hard equipment assets allows the practice to use working capital for any reason, including expansion, hiring, renovations, equipment, working capital, advertising, any reason.
No application fees or upfront fees.
More difficult transactions are done routinely.
- The financing process generally takes 5 to 10 business days. Funding normally occurs in 1-3 business days after the transaction is completed.

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.

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.

Isn’t depreciation a significant issue in this type of this type of Dental Practice Loan?

Small Business Loans Depot’s Dental Practice Loan program is different from other programs. Our program obtains up to 70% of the price at purchase of the dental equipment. A practice is also able to combine or add their Computer equipment including software, into the transaction.   This includes Servers, Desktops, Laptops and software.

This Dental Practice Loan is set up partially as a lease, which allows for significant tax advantages, including being able to write off the full payment similar to the well known Home Mortgage write off.

Call us at Toll Free: 855-787-1113 or complete the “Contact Us” on the Menu above & one of our experienced representatives will contact you. Or complete the one page application and equipment list, Fax back to Fax: 678-559-0336, or E-Mail to info@smallbusinessloansdepot.com.

For the 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.

How exactly would my transaction work? A sample equipment based Dental Practice Loan as follows:

Dr. Johnson of Savannah Dental Arts Studio requests $50,000 to add one room and add another 2 delivery stations. Dr. Johnson submits the application and is approved in 24 hours. Documents are E-Mailed to Dr. Johnson at Savannah Dental Arts Studio.

Dr. Johnson completes the paperwork and overnight returns the original documents. The documents are reviewed same day for accuracy. If a site inspection is required, it is ordered and takes place within 1-3 business days.

If a site inspection is not required, a final transaction verbal confirmation with the customer will take place. A verbal confirmation call with Dr. Johnson of Savannah Dental Arts Studio takes place and the transaction is finalized. Funding occurs via wire within one to three business days after the verbal.

If Savannah Dental Arts Studio requests more funding than what is requested in the original Dental Practice Loan, a 2nd transaction or 2nd funding part is proceeded upon.

A complete financial package, which is normally 2 years tax returns and 3 months business checking account statements is not required for the request. However, if the applicant’s bank statements or returns are strong, it may significantly strengthen their request and the practice should want to provide the information.

Depending upon the Dentist’s credit score, greater funding amounts may be workable without full financials being required. If the dentist has a credit score of 700 to 750 or higher, they often will be able to be considered for, and obtain $5K to $25K more in funding without the request for additional funding being made. This decision is at the discretion of the funding source. The lender has some room to work within the guidelines. The key is for the loan officer to be able justify and document their decision. With a credit score over 750, the lender may be able to receive concurrence and approval for a request for $65,000 or possibly significantly higher without financials, instead of requiring the financials if $50,000 is the limit.

FAQ’s, Frequently asked questions:

Question: How long does the process take?
Answer:  The entire dental practice loan takes approximately four to eight days from start to finish for the  leaseback option.   Funds are wired into the customers business account on the last day.  The loan based on gross sales option takes approximately four to eight business days from as well.   The customer should expect funds to be wired into their account within eight day for the gross sales option.

Question: Are there limitations on the type of assets that can be used in the transaction? Can practice furnishings be included in the transaction?   Answer: In most cases, only hard dental equipment can be included, such as Patient chairs, full deliver stations, X-Ray equipment, Cavitrons, etc.  However, items such as cabinetry, sinks, as well as computers and computer software may be included in the transaction.   Items that cannot be included in any case are regular furniture such as chairs in the waiting room, art, and regular tables.

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 details of the collateral, the value of the collateral, the company’s cash flow, bank account statements and financial statements.    All of these factors may not come into play for any given request.   It will depend on a case by case basis which of these factors have an affect on the request?

Question:  Will a signer, or guarantor be required, or can the request be approved just in the name of the company?   Answer:  In most cases a signer will be required.   In some cases, the Corporation may qualify on it’s own.   In such cases, it will be approved based on the business credit and often the financial statements.   If the business credit, such as the Dun & Bradstreet is strong, lower amounts up to $50,000 may be approved.   For larger amounts, simply having strong business credit will not be enough and financial statements will be required.   If the ownership for the dental practice loan request is represented by more than one person, the other owners may be needed or required as signers.   In general, over 50% ownership is required on the requests.    If one signer is less than 50% ownership, the request will not be approved.    If one signer has 51% ownership, this will be enough in most cases.

Question:  How many number of months can this be for?   Answer:  These can be arranged for 12, 24, 36, 48 or 60 months.

Question:  How does the transaction reflect on my credit report?   The transaction does not  show on the signer’s credit report.    This is a major advantage for this dental practice loan because it will not reflect as an increase in debt of the signer.    The owner of the business can obtain the capital, use it to improve the practice, repay, and even take out an identical transaction, all without it reflecting on the signer’s credit bureau.   There are very few other financing options for which this is the case.

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 that expand, have a build out or bring in an additional dentist 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 of our existing customers have two loans on the books.

Question:  What if there is an existing loan on some of the equipment, am I stuck?
Answer: No.  In most cases, if the equipment is encumbered, we can still do the loan.  If there is a small balance, the balance of the existing loan can be paid off.  If there is an existing lien or UCC lien filed at the state, that lien is released when the dental practice loan is paid off.  In many cases, there is a lien on only a part of the equipment.  If there is equipment that is free and clear, we will use that remaining equipment.  Many dental practices have done loans in the past on which a blanket lien, FF & E, furniture, fixtures and equipment.  Those types of liens are common and do not represent a roadblock to our funding because they do not itemize the equipment at the state.  If equipment is not itemized, it cannot be considered as part of the FF & E loan and can be used for this financing.

Question: Is there a minimum loan amount?  Answer: The minimum is $10,000

Question:  How does early payoff work?  Answer: Due to the tax advantage, there is not a significant advantage for early payoff.  Due to this transaction being set up as a lease, leases do not traditionally offer an advantage for early  payoff.  In most cases, the documents indicate that all payments are required to pay off the lease transaction.  This allows the lender, at their discretion, to require all payments for leases that have had a difficult or slow repayment history.   In practice, if the transaction is paid off early, the lender will often offer a discount which equals 5% to 10% off of the total payments.  If the transaction is paid off very early, for example, within the 1st 12 payments of a 60 month lease, the lender may give the borrower more of a discount at their discretion.

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 10% to 15% off the total of the payment.

Question: Should we try to get the funding we need through one loan or do we need
to consider more than one loan?
Answer:  Your business should consider more than one loan type if the business may
not qualify through one loan product.   There are many businesses that are sound and
profitable, but still may not qualify for the amount they want through one loan type
or just one loan.  There may be limitations with the loan product itself that may result in the business not qualifying for the loan amount they need.  For example, if a business uses the loan based on equipment financing and they do not have a great deal of equipment, they should consider an additional loan product, even though they may be very credit worthy.   For the loan based on the revenues of the business, the term is very short, only 12 months.   The practice may not want to get a dental practice loan for the entire amount if the term is only 9 or 12 months.   The business may feel that the monthly payment takes up too much for their cash flow that they need for other important business needs.

Other cash flow ideas and solutions for your dental practice - Your practice has found a solution to a significant aspect of it’s cash flow needs through a loan, though is interested in what it can do to further improve cash flow in the upcoming years.   A dental practice is always interested in increasing it’s sales and it’s collections.   The practice usually considers increasing it’s collections by receiving payment for debt and payments currently outstanding to customers it has already provided services to.    A method that a dental practice can use to do both at the same time is to offer financing to current as well as future patients that have challenged or difficult credit.

This is an excellent newly available product a dental practice can immediately offer that will both substantially increase it’s sales, increase it’s balances outstanding and increase the percentage of balances outstanding that it collects.   Currently, if an existing patient or new patient requests financing for dental services, most dental practices refer the patient to Care Credit to apply for financing.  In some cases, if the patient is well known to the practice, the dentist may offer short term financing for higher cost service as a way of assisting customers in the repayment and making it more likely that the patient have certain higher cost services completed.   This is, in essence, short term owner financing for good patients.

However, for the large majority of patients that request financing, the practice will refer the patient to Care Credit for financing.  If Care Credit approves them, the practice will be able to generate revenue by providing the service.  If Care credit rejects the patient, a sale will be lost and the prospective customer will not be able to receive badly needed dental services they very much desire.   Care credit requires a credit score of approximately 680 to approve the request.

For those patients that Care credit rejects, this is an opportunity for the practice to easily obtain significant new business through the tough credit, also known as all credit patient financing.   The practice can actively advertise that it offers credit and financing to all patients regardless of credit, if they can pay 25% of the cost upon the services being rendered.  This should provide a significant increase in sales for the practice, even more so if the practice does even modest advertising such as in house word of mouth and brochures.

As an example, a patient needs dental work for a total of $1,000, but cannot pay anywhere near the full amount and the practice does not want to finance the patient.  Using the new patient all credit financing program we offer, financing can occur.  The practice can charge
a 10% premium on top of the regular price and also recoup the financing costs in the process.

The cost of the service is $1,000.  The patient pays $250 and finances the remaining $750.
The patient can choose 4, 6, 9 or 12 month financing and chooses 12 months.  They pay $62.50 for another 12 months and pay off the financing.

Accounts receivables financing is an option for some dental practices.   In general, accounts receivables financing has been limited to regular medical practices that gross approximately $250,000 per month.  Dental practices and Chiropractors have for the most part been unable to receive financing against their receivables due to the fact that many of the receivables are direct with their clients and not with insurance companies.  However, there are many dentists that do have a significant dollar amount outstanding from patients that have dental insurance.  We partner with the very limited number of programs that allow for receivables financing for dentists.   Call us today to speak with us regarding this option.  We will review minimum dollar amounts needed, your % of receivables that are private versus insurance receivables.   We will discuss with you if you can expect to be approved, the dollar amount, the approximate terms, and future receivables options.

For this option, there are some restrictions on how old the receivables that are financed can be.   In many cases, if the receivables are more than 45 days old, they may be ineligible to be factored for this dental practice loan program.

Dental Practice Loan Resources:

SBA Community Blog and Forum –  Blog and Forums by the SBA, Small business administration.   Questions can be asked and answers provided.

U.S. Department of Commerce – Helps american businesses become more innovative at home and competitive abroad.

U.S. Bureau of Economic Analysis – Provides statistics on consumer spending, corporate profits, travel and tourism and much more.

Entrepreneurworld – Resource for Entrepreneurs, including starting your own business, growing your business.

Bureau of Labor Statistics – Provides companies with up to date information on employment, demand, hiring, productivity and other information that may be useful to companies.

International Trade Administration – Creates jobs and economic growth by promotingU.S. companies abroad to governments in other countries.

More Dental Practice Loan resources:

Department of Labor – Provides information on many labor issues that can be useful to companies, such as insurance, regulation, wages, wage hours, compensation, safety and health

U.S. Patent and Trademark Office –U.S. office to file patents to protect a companies new or existing proprietary products.

U.S. Trade and Development Agency – Promotes U.S. Exports to Foreign Countries, please review if your company is interested in exporting goods to foreign countries.

CEO Refresher - A monthly newsletter on creative leadership ideas. Short articles, brief book reviews, models, management tools, quotations and commentary.

E-Network for CEOs – Online articles and much more for CEO’s

Public Radio Planet Money – All issues money related to the public.

Thank your for visiting our Dental Practice Loan resource page!

15 thoughts on “Dental Practice Loan

  1. My practice has been in place for 3 years and I have about a 685 credit score. We do about $650,000 per year. Can someone estimate how much I can get? Dr. Regan 404-714- 2680, thanks

  2. You should be able to get in the $100,000 to $150,000, to some extent depending upon business credit and your most recent cash flow figures. If you can provide financials that are strong, then the amount could be higher, or you may simply be more likely to be approved.

  3. Many customers are reluctant to provide financial statements such as Tax Returns and the most updated interim Profit and Loss, and Balance Sheet, even though they are strong. Customers often wish to provide as little documentation as possible to simplify the request. However, if the financial statements are available and are strong, then the customer should want to provide them, as they can significantly strengthen the request. In some cases, a decline can be turned into an approval, and an approval may be much higher if the financials are strong, as much as 50% to 100% higher.

  4. An overall strategy a business can use to obtain as much funding as possible is for the business to not always try to get all the funding they want with just 1 loan, through 1 funding program, all at one time at the beginning. In many cases, a business cannot get $100,000 with 1 loan right away, but they can get $25,000 through one type of loan, $50,000 through a 2nd type of loan a few weeks later, and the last $25,000 through either a 2nd similar loan, or a different loan entirely a few weeks after that.

  5. Mike Stephens of Shasta Hills dental in Washington write to us, “I am looking for $60,000 but my chairs and X-ray equipment put together is about $50,000. However, I have several (almost) new computers, including 1 Server and some practice software. Can I add those to the equipment to get the amount I need?”

  6. Dear Mike, good news, yes you can! We can use all of your Computer electronic equipment, especially your Servers, desktops and software. Laptops may be the only items we cannot include, but we can include just about all of the others. As a result, please send us a list of your current Computer electronic equipment. We will review the list, and get back with your right away to confirm that we can cover the amount needed before we proceed. Even better, we will be able to combine the two types of equipment together and not have to do 2 separate transactions in order to get you to the $60,000 that you want.

    In your list, please include the Manufacturer and the Model #. If any of the items are custom built, please provide some of the specifications, such as speed of the computer, RAM, and hard drive figures in order for us to be able to assign a value to the items for the transaction. For the software, please include the Manufacturer of the Software and the name of the Software. For practice software, they are usually given specific name. I do not see this added request as being an issue, since we are not attempting to obtain a significant amount more money. Since we are only attempting to obtain another $10,000 or so, we only need about another $20,000 in computer equipment. You would also want to confirm that the computers are also free and clear and themselves not under any lien. If they are under lien, they cannot be used in this transaction. If you need any assistance in finding the information, values, or any other information, less us know, we have a lot of databases that we can use to look these items up.

  7. Dr. Craig Bonner of Traverse City Dental wrote in to us asking “We have been in business for just over 3 years, but need around $25,000 in working capital & about $30,000 in equipment. Credit is strong, though as you can see, the time in business is short. Do we have a good chance to get this funding the way we need it, considering our short time in business? Also, please advise what we have to submit and what the term options would be as we are looking closely at our cash flow at this time. Further, we are looking to avoid supplying financial statements due to the fact that for the 1st 2 years, the numbers were low and we know that many lenders require financial statements for their requests. Please advise” Thank you

  8. Dr. Bonner, the 3 years time in business is enough in general and should not be an issue. This, combined with the strong credit, will not be a stumbling block. As far as the amounts, that will not be an obstacle either. Requests under $50,000 generally do not require extensive scrutiny. As far as the terms, the terms are 24, 36, 48 and 60 months in most cases. Since you are looking at amounts under $50,000 to $100,000, financial statements would not be required for a dental practice loan of this type. Just provide the remaining information regarding your assets and basic business information.

    As a result, you only have to submit the 1 Page Application and a brief equipment list showing the equipment assets the practice has. The funding will be based on a combination of the cash flow and only a small percentage of the equipment assets. Most of your equipment assets will remain free and clear. We will not take all the assets of the dental practice, as is the case with many lenders. Many lenders will take a blanket lien on all furniture, fixtures and equipment which prevents the practice from obtaining financing in the future. A loan structured this way allows the practice significant flexibility when they request funding in the future.

  9. We have a small lien on some of our dental equipment from the original existing loan. Does that knock us out of the running for a loan, or can we get around this somehow?

  10. We can get around this issue in most cases. Just give us a list of the equipment that you have and indicate whether that equipment is free and clear or if there is still a loan on it. I suggest doing two lists. One list with equipment that is free and clear and the second list of items that have a lien on them. We will call you to discuss who the lender is, the approximate amount owed and what type of lien it is.

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