Dental Practice Loans

DENTAL PRACTICE LOANS AND HOW THEY CAN HELP YOU

Are you looking to grow your existing dental practice? Are you running a traditional dental office, orthodontic, or dental supply company? Getting the proper dental business loan can help you facilitate your growth and expansion by providing the necessary funding.

You may still have outstanding student loans, bad credit, and considerable debt. Working with an alternative lender can improve your chances of getting practice financing versus looking for a traditional bank or credit union offering you a bank loan. The bank requires a credit score above 700 and low outstanding personal debt.

Years ago, a medical professional could literally walk into a bank and get a line of credit. Today, you are a business owner and banks are not lending to businesses. It doesn’t matter if you are an existing dental practice or you are looking to make a dental practice acquisition.

As a professional business owner, you will run into the same types of challenges that all owners experience. Lack of funding from the big banks.

Dental Office

You never get a second chance to make a good first impression. Having a nice, clean, and modern looking office makes the patient experience much more enjoyable. This includes the waiting area and int in-office experience. Why not keep your patients calm and relaxed with calming music, aquariums or water features and in-chair entertainment options with TV’s the patient control?

Dental Equipment

Having updated dental equipment makes your job easier. Getting equipment financing can cover the costs of new technologies and dental equipment. That’s why it’s important to work with a lending partner that understands the needs of a dental professional.

Everyday Business Expenses

Having working capital enables the dental practice owner the opportunity to purchase inventory and supplies at a discount. Sometimes invoices are slow to clear, and you need a lender to help you bridge the gap in cash flow to pay your rent, salaries, utilities, taxes or just keep the water running.

Growth and Expansion with Dental Practice Financing

A dental practice loan can help you open a second location Maybe you want to hire additional staff or a dentist and you need more space? This is where a dental office loan can help. We can provide you with an attractive loan term and repayment term, interest rate all without a prepayment penalty.

Sunwise Capital provides dental practice financing. You can receive a small business loan or equipment financing with highly competitive rates and terms. We offer an SBA loan as a financing option for real estate or a merchant cash advance.

What are the Best Dental Practice Loans?

1. SBA Loan. You can talk to us about applying for a Small Business Administration Loan. These are commonly referred to as an SBA 7(a) loan. While these loans offer larger business funding amounts, they require a strong credit profile. The SBA loan can also help you secure real estate to expand your business. Sunwise Capital works directly with SBA banks as dental lenders.
   Loan Amounts range from $5,000 to $5M. An SBA 504 loan is commercial real estate financing for owner-occupied properties. The SBA 7a loans can be used to make a dental practice purchase or obtain working capital. The repayment terms range from five to twenty-five years. Interest rates are extremely competitive starting at around 7.75%. Preliminary approvals are the same day with funding time ranging from several weeks to 60 – 90 days.
2. Bank Loan. Seeking a traditional lender aka your local bank? Check to see If they have a relationship with the American Dental Association of any other industry groups. The challenge for most owners of any type of business is the tremendous amount of paperwork necessary to complete to be considered for a practice loan.
3. Fast Business Loan. If you’re not willing to go through the time and energy to seek a bank loan, you may want to consider alternative lenders, like Sunwise Capital for a short to medium-term loan. The application is one page and requires only 3 months of business bank statements. Approvals can be within 24 hours and funding can be the next day. Loan amounts range from $10,000 to $2M. Rates can start as low as 10%.
4. Unsecured Business Lines of Credit. For those that have a strong FICO score, this option provides a line of credit up to $200,000. Each principle can apply separately, enabling you to secure significant funding.
5. Dental Equipment Loans. Fortunately, this option is not credit driven. Why? The equipment secures the loan. You may have to put 10% to 20% deposit to secure the loan. The flexibility is the terms range from six months to five years. Approvals are within 24 hours.
6. Invoice Factoring is really not a financing option for the dental practice loan.

WHAT ARE THE TOP 3 STEPS TO FINANCING MY BUSINESS

1. Create a Business Plan. Know your numbers.
2. Review Your Credit and Fix Errors
3. Review Your Financing Options

TOP TRENDS AND OTHER CONSIDERATIONS

• Location, location, and location.
• The right equipment. Patients want to feel like they being treated with the latest technology.
• Staffing – don’t over staff and keep expenses down to keep prices competitive.
• Marketing. Use all resources available both online and offline. Get your site ranked and improve it with simple SEO and good content. You might want to try PPC. Add video.
• Cloud-based management software
• Mobile-friendly web site – keep it fresh and give it a makeover every couple of years
• Social media – be active.
• Set up “chat” on your website to get more patient engagement
• Get referrals with better patient experiences.
• 3D printers. They create great results and the patients love them.
• Laser Dentistry
• Teledentistry – See COVID-19
• Use review sites. See Referrals above.
• Check out your competition. Find out what they do and where you can improve.