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  • Writer's pictureRodney Wood

Business Loans for Dental Practices

Updated: Apr 13, 2023


Dental Practices are expensive to operate. Equipment needs to be state of the art. As well, many dentists, orthodontists, doctors, specialists, etc...are sometimes already in student debt by the time they complete the education phase of their career. Sometimes they may need alternative financing options.


Dental practices have to continuously invest in their businesses to remain competitive and keep patients returning. To offer your patients the best care, you must replace your equipment regularly and hire the best hygienists, doctors, and dentists. In the meantime, you may find your cash flow uneven while you wait for insurance companies to reimburse you for patient procedures.


Dental practices can benefit from financing. It can be helpful to manage your cash flow, purchase equipment, or expand your practice by taking out a line of credit or short-term loan. Dental and medical practices can benefit from small business loans in the following ways.



Dental Practice Business Loans

As a dental practice owner, you may need to secure financing at some point to cover the costs of running your business, such as purchasing equipment, renovating your office, or hiring additional staff.


Fortunately, there are a variety of financing options available to dental practice owners, including business loans, credit lines, and alternative equipment financing. In this article, we will explore the different financing options available to dental practice owners and how to choose the right one for your needs


Dental Business Loans:

Business loans are a popular financing option for dental practice owners. They provide a lump sum of money that you can use for a variety of purposes, such as purchasing equipment, renovating your office, or hiring additional staff.


Dental business loans can be secured (meaning you need to provide collateral) or unsecured (meaning you don't need to provide collateral). Some common types of business loans for dental practice owners include term loans, SBA loans, and business cash advances.


Term Loans:

Term loans are a type of business loan that provides a lump sum of money that you must repay over a fixed period of time, usually with fixed monthly payments.


These loans are typically available in amounts ranging from $10,000 to $500,000 and can have repayment terms of up to 10 years. Term loans can be secured or unsecured, depending on the lender and your creditworthiness.



SBA Loans:

SBA loans are government-guaranteed loans offered by participating banks and lending institutions. These loans are designed to help small businesses, including dental practices, access the financing they need to grow and succeed.


SBA loans can be used for a variety of purposes, including purchasing equipment, renovating your office, and hiring additional staff. SBA loans are typically available in amounts ranging from $10,000 to $5 million and can have repayment terms of up to 25 years.



Business Cash Advances:

Business cash advances are a type of financing that provides a lump sum of money in exchange for a percentage of your future sales.


These advances are typically available in amounts ranging from $5,000 to $2,000,000,000 and can have repayment terms of up to 24 months. Business cash advances are a good option for dental practice owners who need access to cash quickly and don't want to go through the traditional loan application process.


They require minimal documentation. Often just 6 months of bank statements are enough to get a max approval amount and an offer. Funding can complete within 24 to 48 hours of application. The rates are higher than a traditional secured bank loan but for many the speed and convenience are worth the extra cost.



Credit Lines:

Credit lines are a type of financing that allows you to borrow money up to a certain limit, as needed. You only pay interest on the money you borrow and can borrow and repay the funds multiple times as long as you stay within the credit limit.


Credit lines can be secured or unsecured, depending on the lender and your creditworthiness. Credit lines are a good option for dental practice owners who need flexible financing to cover unexpected expenses or take advantage of business opportunities as they arise.



Alternative Equipment Financing:

Alternative equipment financing is a type of financing that allows you to purchase the equipment you need for your dental practice without having to pay for it upfront.


With this type of financing, you can borrow the money you need to purchase the equipment and pay it back over time. Alternative equipment financing can be a good option for dental practice owners who need to purchase expensive equipment but don't have the cash on hand to do so.



Conclusion:

As a dental practice owner, with AmeriCapital Solutions, you have a variety of financing options available to you, including business loans, credit lines, term loans, business cash advances, equipment financing, commercial real estate loans, mergers and acquisitions and much more.


Visit our website or give us a call for a free, zero pressure, no-obligation consultation today. We are happy to help, even if you are just doing research.


Rodney Wood

AmeriCapital Solutions

Call Text (442) 222-9429








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