Business Loans For Dental Practices and Laboratories

Business Loans Dentist

By running a dental practice or laboratory, you’re on the right path toward a good salary, a stimulating work environment, adjustable hours, and many other benefits. However, managing any self-sustained business is expensive and time-consuming. It takes a lot of working capital to keep any medical facility in top shape. Being a dental expert also means you’ll need access to all kinds of equipment and supplies, not to mention a safe space for your patients to feel comfortable. This is where the right type of business financing can help.

Ways a Business Loan Can Help You

Running a dental practice or laboratory is similar to any avenue of medicine in that there are constant expenses to think of. After all, you want the very best for your patients and require top of the line oral-care equipment and the highest quality dental supplies. A business loan is one of the best ways to get all of those things. Here’s how you can use your business loan for the benefit of your practice or laboratory:

Equipment

  • Office equipment and supplies
    • Fax machines
    • Computers
    • Telephones
    • Printers
  • Dental/laboratory equipment
    • X-ray imaging machines
    • Overhead and speciality lighting
    • Dental compressors
    • Polishing/cleaning units
    • Steam/ultrasonic cleaners
  • Dental/laboratory instruments
    • Surgical tools
  • High-quality dental patient chairs.

Inventory/Supplies

  • Stocking dental and implant-crafting supplies
    • Local anesthesia
    • Latex gloves
    • Bonding agents
    • Procedural masks
    • Composite resin,
    • Toothbrushes, toothpaste, mouthwash, floss, etc).
  • New lab coats, scrubs, protective glasses, etc. for both employees and patients.

Improve Your Office

  • Remodelling your workspace (painting, tiling, decoration, etc).
  • Moving to a newer, larger location if necessary.
  • Furnishing your waiting room with comfortable furniture, televisions, etc.

Additional Expenses

  • Cover payroll expenses
  • Paying for you or your employee’s dental and/or technician training.
  • Hiring new employees
    • Assistants
    • Hygienists
    • Secretaries
  • Covering the cost of advertising
    • New website
    • Billboards
    • Outdoor signs
    • Newspaper ads

Best Dental Practice Business Loan Providers

AmountAPRTerm (months)
SharpShooter Funding1k-300kFee-Based: Starting at 9%12- 60 Learn more
OnDeck5k-300k8% – 29% 6-18Learn more
Lending Loop1k-500k+5.9%3-60Learn more
Thinking CapitalUp to 300k8%-22%6-12 Learn more
Merchant Growth5k-500k-6-18Learn more
BDC100K +6.05% +60Learn more
IOU Financial5K-100k15%+12-18Learn more

What Do You Need to Qualify for a Dental Practice Loan? 

Each lender has their own set of rules and lending standards that you must meet in order to qualify. However, in general, most lenders will evaluate the following criteria. 

  • Credit score – Both your personal and business credit score will be considered when approving you for a dental practice loan. 
  • Time in business – The more funds you require, the longer your lender will want you to have been in business. 
  • Debt level – The lower your debt-to-income ratio, the more confident your lender will feel about lending to you. 
  • Business plan – Lenders will often ask start-ups and young businesses to provide a business plan detailing why they need a loan and how they plan to use it.  

Documents Required

When applying for a dental practice loan, you may also be required to provide the following documents for verification. 

  • Personal identification – Your lender may ask for a government-issued photo ID to confirm your identity and address. 
  • Personal financial documents – Your personal bank statements, pay-stubs, and more may be required. 
  • Business Details – Your business name, address, business license number, and other information to identify your business will be required. 
  • Business Financial information – Your business bank statements, balance sheets, revenue statements, and tax records will be required to verify your eligibility. 

Business plan – As mentioned above, you may need to provide a business plan to communicate your business need for a loan. 

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Calculating Your Dental Business Loan Payments 

When calculating your dental business loan payments there are a few key factors to consider. 

  • Interest Rate –  When comparing rates between lenders, be sure to evaluate the APR as it includes your rate plus any fees you’ll pay over the term of a year. 
  • Fees – Fees like administrative fees and loan origination fees should be taken into consideration when calculating your loan payments. While they may seem insignificant, they can easily add up and make your payments less affordable. 
  • Term Length – Be sure to choose a term length that doesn’t just provide you with the smallest monthly payments. Choosing a shorter but affordable term will help you save on interest. 

Business Financing For Any Industry

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5 Other Ways to Finance Your Dental Practice

There are a variety of different loans you can use to help cover any expenses your dental practice may incur. 

Equipment Loan

When running a dental practice, you’ll require certain equipment to successfully operate your business. Computers, dental chairs, dental drills, scalers, and x-ray machines are just a few of the many items you’ll need to purchase. An equipment loan is a great way to finance this expensive list of items, especially for individuals with bad credit, as the equipment itself acts as collateral.

Commercial Property Loan

Finding a place to open your dental practice is one of the highest costs you’ll incur. Like a regular mortgage, a commercial mortgage can help you finance your dental property over 5 to 20 years with an amortization period of 25- 30 years. 

Business Line of Credit

A business line of credit is a revolving loan that you can use at any time up to a certain credit limit. This form of credit is great for small short-term expenses as you only need to pay interest on the amount you use. Like a credit card, once you repay the amount you owe, you regain access to the entire credit limit. In times of emergencies, a business line of credit can help dental practitioners pay rent, purchase supplies, boost cash flow and other small short-term expenses. 

Merchant Cash Advance

A merchant cash advance is a loan that is repaid through a percentage of your future credit card sales. While it is an expensive way of financing, it is one of the fastest ways to gain access to extra funds. If you have a fairly regular amount of credit card sales, you can use it to cover any unexpected expenses. 

CSBFP

The Canadian Small Business Financing Program (CSBFP) is a government financing program for small businesses. It provides loans up to $1 million and $350,000 to purchase equipment or leasehold improvements. 

FAQs: Dental Practice Business Loans

Can I qualify for dental financing if I have bad credit? 

While credit is often looked at, many alternative lenders base their approval on more than just your credit. They will evaluate your debt level, assets, monthly revenue, and other financial details. So while you may not qualify with a bank that has high lending standards, you won’t find a shortage of alternative lenders who are willing to lend to you.  If you have bad credit, it’s important that you research the alternative lender’s minimum approval requirements before applying. This will allow you to avoid any unnecessary inquiries and increase your chance of qualifying. 

How long can I finance my dental equipment?

  The length of your term depends on the type of financing you choose to purchase your equipment. For example, if you use an equipment loan, you may have a few months to 10 years to repay the loan. On the other hand, if you used a short-term business loan, you’ll usually have a few months to 3 years to repay the loan. 

Do I need to provide collateral when applying for a dental practice loan?

Some lenders may require you to provide some business assets or a personal guarantee as collateral. Collateral can be any asset including equipment, accounts receivable, or inventory.

Why Choose Loans Canada?

If you’re looking to finance or expand your dental practice or laboratory, we can help you access business loans that you can benefit from. Some of the services these loans include, but aren’t limited to:

  • Cost-effective payment schedules, adaptable to your business requirements
  • Better interest and payment rates 
  • Simple applications that can be filled out on any computer or smartphone
  • Speedier approval times than banks and other financial institutions 
  • Financing as fast as two days after approval, giving you more time to concentrate on your workspace and patients

Apply Today!

Submit an application today and be one step closer to getting the funding you need to take your dental practice to the next level. Business loans for all business owners are just a click away.

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