Everything You Should Know About Dental Practice Loans
Running a dental practice can be overwhelming. You must consider it similar to all other types of businesses. The only difference is that you have a niche market for patients who need dental care. That said, the financial aspect of your dental practice is a very important one. Without finances, it is difficult to keep your business afloat. This is why some dental practice owners consider dental practice loans. These loans are just a means for sustaining the practice while figuring out income generation and breaking even as a business.
What Are Dental Practice Loans?
They are funds acquired on a loan basis, to help you manage your dental practice. Lenders of these loans have an easy time lending to dental practices, having that dentist can make an income of above the average small business owner. These funds can be used to expand your business, start one or improve your services.
When Should You Consider Getting a Loan?
It is not every dental expert that should think about procuring a loan. Loans are there to provide financial assistance to the special needs that come with the practice. Some of the situations that should make you consider dental practice loans include:
- When starting your dental practice – do you feel like it is time for you to branch out on your own? This is a viable career path that you should pursue whenever you feel ready. Dental practice loans can help you jumpstart your business.
- Expanding your business – if ever you feel like your business has been stagnant for a long time, it may be time to expand. To do so, you may need a financial muscle that can only be provided by loan lenders.
- Procuring or financial dental equipment – dental equipment is the one thing that sets dental practices apart. Having the latest modern equipment in your dental facility will make all the difference.
- Managing cash flow – to be honest, dental care can e expensive. It is why most patients are likely to pay you through insurance groups. When this happens consistently, you are very likely to have uneven cash flows. Meeting expenses, therefore, can be difficult to go by, unless you have a loan.
Best Dental Practice Loans You Can Consider
When considering a loan for your dental practice, you have to be careful. You need a lender that does not capitalize on your weaknesses, as this could potentially crumble your business. Some of the best dental practice loans available for dental experts include the following:
- SBA Loans – they are also called Small Business Administration loans. This is a financing program that works with participating banks and credit unions to help out small dental practices. For the most part, they are not rigid with their restrictions. The loan limits for these loans range between $5,000 to $5 million. You also have a repayment plan that goes from 5 years up to 25 years.
- Conventional Bank Loans – this could be the most obvious place you look for funding. Banks provide loan alternatives for dental practices. Besides, dentists have a better chance of securing bank loans than any other business owner. The good news is that the loan limits range between $30,000 to $5 million. Better yet, the approval of these loans is faster, going between 2-6 weeks.
- Short-Term and Medium-Term Online Loans – online loan venders have the least amount of paperwork than other types of lenders. If you are looking for a quick loan for your dental practice, the first place you look is not a bank. For online loan venders, the application process is quick and easy. Besides that, the approval period can be as quick as one business day. However, the downside is that the repayment plan is shorter than all the others and it might also be more expensive.
- Business Lines of Credit – this works best for the dental experts who are undecided about how much funds they need. There is a limit to how much you can borrow. However, the interest you pay back is only based on the funds you withdraw.
- Dental Equipment Finance – they are specific to dentists who need to finance equipment in their practices. They are very accessible, even to a dentist with bad personal credit.