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Best Dental Practice Loans: Rates, Terms & Information

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LOAN AMOUNTS
INTEREST RATES
REPAYMENT TERMS
TURNAROUND TIME
Pros
Cons

Best Dental Practice Loans: Rates, Terms & Information

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Best Small Business Loans for Dental Practices

Lenders for Dental Practice Loans:

From equipment to retail products and payroll, dental practices have plenty of costs to cover. Not to mention standard operating costs. After investing in your own education and building a practice to provide the best dental care, you may find yourself in need of a dental business loan. If so, here are some lenders that may be able to help. 

OnDeck (Minimum credit score 625)

Best known for short-term financing, OnDeck is a top choice for dental practices. With loans up to $250,000 available, OnDeck can provide funding as soon as the same business day. Plus, they report to major credit bureaus so dental practices can leverage loans to build credit. Some loans require daily or weekly repayment which can be challenging to keep up with. Furthermore, loans require a personal guarantee and business lien.

Kapitus (Minimum credit score 600)

Kapitus is all about making dental practices smile. From fast funding to a variety of lending products, Kapitus is an ideal partner to find financing that can take your practice to the next level. For new practices, Kapitus may not be the right partner as they do prefer businesses with established revenues and time in business. To apply you will need your three most recent bank statements and a few minutes of time. Once approved, you can get funding as soon as the same business day. Kapitus can offer invoice factoring, small business loans, equipment financing, and more. Requirements and funding times can vary depending on the type of product you choose. To find out what you qualify for you will need to apply as rates are not advertised online. 

Rapid Finance (Minimum credit score 620)

Rapid Finance can provide funds well, rapidly. With a minimum credit score requirement as low as 630, Rapid Finance is a fan favorite for a variety of financial products. Rapid Finance is both a direct lender as well as a source to connect business owners to better suited lenders. Thanks to a large network and plenty of options you can get the funding you need quickly, hence to the name. To explore your options, apply with Rapid Finance. Prepare yourself though, the convenience and speed may come at a cost. Rapid Finance does not list rates but may have higher rates than some competitors as a trade off for being able to fund loans quickly. 

Lenders for dental practice loans for bad credit

Even if you have bad credit, you can still smile through. Here’s our top pick for lenders that have a low credit score requirement.

OnDeck (Minimum credit score 625)


In addition to a low minimum credit score requirement, OnDeck can provide fast funding too. Plus, with a variety of financial products available they can meet the needs of business owners. Highlights of working with OnDeck include a streamlined application process, low credit score requirement, and funds available as soon as the same business day.

Lenders for fast dental practice business loans

Need funds quickly? Say hello to Rapid Finance. 

Rapid Finance

Sometimes, you need funds fast. When you do, call on Rapid Finance. Rapid Finance can fund business loans as soon as the same day of approval. With access to a variety of products, choose what works best for your practice and receive funds quickly.

Dental practice loan rates

At SMBScore, it's our job to give you insights about your business so you can make the right choices. There are many banks and lenders that offer varying rates depending on many factors such as your credit score, time in business, monthly revenue, and many other factors. Here are a few banks and lenders dental practice loan rates so you can make an informed decision:

  • Bank of America offers dental practice loans up to $5 million but does not list their interest rates.
  • 1st Med Financial offers conventional practice loans at 5.95% - 6.50% with a 10 - 20 year fixed rate as of 2023.
  • SBA loans: Rates start at 7.75% for dentists
  • Bank loan rates typically start at 7%
  • Business line of credit for dentists usually starts at 7% also
  • Dental equipment financing starts slightly lower at 6% interest rate

Rates can vary from roughly 7% to 25% or more depending on your business. It's typical that traditional banks and sba loans have lower interest rates compared to alternative lenders. We recommend weighing your options and especially the interest the lender is offering before making a decision.

What is a dental practice loan?

A dental practice loan is a small business loan or business line of credit that provides funding to open, sustain or purchase a dental practice. Whether you’re an established dentist looking to expand your practice or recently graduated and want to start your own business, a dental practice loan can help you achieve your business goals. 

There are several ways you can get a dental practice loan, including from specialized lenders, online lenders or SBA government-backed loans. As you explore a dental practice loan, make sure you understand all of your options available.

What advice is there for a dentist looking for a dental business loan?

If you’re looking to obtain a dental practice loan, there are a few things you can do to improve your chances of qualifying. 

  • Improve your credit score - Having a high credit score will allow you to unlock the best terms and conditions for your dental practice loan. Although there is no magic formula to improving your personal credit score, you should consider cleaning up errors on your personal credit report.
  • Have a strong business plan - Banks and lenders like to see that you have a clear plan of action for your dental practice. Make sure you have a business plan that outlines your goals and how you plan to repay the loan. 
  • Seek out a specialty lender - Borrowing from a lender specializing in dental loans can give you access to different terms and conditions. They also may not be deterred if an applicant has student debt from dental school. A lender specializing in dental loans should better understand the risks associated with the loan. 
  • Keep a low credit balance - Paying your bills on time and keeping a low credit card utilization will show a bank you are financially responsible. 

What will lenders consider when reviewing your loan application? Access personalized insight at mySMBScore now. 

Will a dentist's student loans affect their chances of receiving dental practice loans?

If a bank is specialized in working with dental or doctor loans, student loan debt is generally not considered against a borrower. While the payment will be factored into their debt-to-income ratio, it is expected that most recently-graduated dentists will have several thousands of dollars in student debt. 

However, if you are not making your student loan payments or defaulting on your student loans, a bank will likely see this as a concern and could impact your approval decision. Learn more about how student loan debt may affect your ability to qualify for a business loan at mySMBscore. 

How much working capital do I need for a dental practice?

The amount of working capital needed will depend on the practice and your business plans. Additional working capital can help fund marketing efforts and operating expenses or help keep the business open during slower periods. 

If you need quick access to funds for your dental practice, an online lender will likely be the fastest way to get the working capital loan you need. Before applying for a loan, focus on your needs and budgets. It’s important to only borrow what you need to avoid unnecessary hardship. 

When should a dentist contact a banker about a dental practice loan? 

The sooner, the better! If you are considering starting your own practice or are about to graduate from dental school, it can be helpful to understand your financing options. Bankers may be commissioned though so learn what you can and ask the right questions. If you already have an established practice check your SMBscore before making the call. 

What can dental practice loans be used for?

There are several ways you can utilize a dental practice loan. Some common uses include: 

You can explore different lending products based on your needs and goals. 

What types of dental practice loans are available?

Whether you’re looking to start a new dental practice or need new equipment for your office, several loan options are available. Some common ones include: 

  • SBA loan - If you’re looking to acquire real estate or open a new location, an SBA loan could be a good option for you. It’s an affordable lending option with a lower down payment requirement and a favorable amortization schedule. Plus, interest rates are capped and loans are partially backed by the government. Beware though - qualifying takes time, patience, and no shortage of legitimacy. 
  • Working capital loan - If you need more cash flow to support your business, a working capital loan will give you access to fast funds you can use for a variety of operating expenses. 
  • Business line of credit - This is one of the most popular ways to get financing for your dental practice.  A business line of credit is a great option for borrowers who are looking for a flexible source of financing they can draw from repeatedly. 

When should a dentist consider an SBA loan over a conventional loan?

There are several benefits to seeking an SBA loan over a conventional loan. A few benefits include

  • Looser qualifications: With looser requirements, an SBA loan is a great option for a borrower who cannot qualify for a conventional term loan
  • More favorable terms: SBA loans can offer more flexible repayment terms, including lower down payments, lower interest rates and a favorable amortization schedule. 
  • Real estate transactions: With a fixed interest rate and longer loan period, an SBA loan is a good solution for real estate financing or large commercial projects. 

What credit score do you need for a dental practice loan?

While each lender will have different credit requirements, the better your credit score, the better terms and conditions you’ll unlock. A good credit score (anything over 670, according to FICO) will help you improve your chances of qualifying for a dental practice loan. 

How many years can you finance a dental practice?

If you are looking to get a dental office financing loan, the repayment terms can range from a few years for an equipment loan up to 25 years for a more conventional term. The repayment period will depend on the type of loan you get and the amount you finance. Keep in mind that the longer your repayment period is, the lower your monthly payment may be, but you will likely spend more on interest over the term. Keep an eye on total loan costs as you shop offers

Are dental practice loans tax deductible?

While the payments on a dental practice loan principal are not tax-deductible, the interest payments are. If you have questions about how a dental practice loan can affect your taxes, make sure to speak with a qualified tax professional.

What is a good profit margin for a dental practice?

Having a benchmark for your dental practice’s gross profit margin can help you understand how to improve and generate more profit. The average dental practice has around 30-40% gross profit margin. Although this can change depending on the expenses and costs associated, around 40% is a typical gross profit margin. 

What common mistakes do dentists make that can delay a dental practice loan approval?

If you’re looking to get a dental practice loan, there are a few common mistakes you should avoid to ensure you’re able to get the funding you need smoothly and quickly. Some mistakes include: 

  • Not getting pre-qualified - Getting pre-qualified is a simple and easy way to make sure you know what your borrowing capacity is and what you can get approved for, assuming you can provide necessary documentation and meet underwriting checks. If you are looking to get pre-qualified and see offers from lenders ready to work with you, mySMBscore can help. With the mySMBscore platform, you can find lenders that want to work with you based on your personalized credit data, saving you time and money as you review your dental practice loan options.
  • Missing documentation - As you apply for your dental practice loan, you must gather all the appropriate documents so you can quickly send them to your lender with your application. This will ensure the lender has all the information they need to approve your application. 
  • Irresponsible financial decisions - If you are late with your current bill payments or have a low credit score, your application might not get approved. It’s important to stay on top of your finances during the application process to ensure you’re approved.  
  • Submitting misinformation - During the pre-qualification process it’s important to submit accurate information. If information is incorrect this can cause the prequalification to be revoked. 

How do you qualify for a dental practice loan?

While each lender will have different requirements to qualify for a dental practice loan, there are a few things that are common across the industry, including 

  • A high credit score - It’s recommended your personal credit score be at 700 or higher to get the best rates. 
  • A solid business plan - Showing a complete and thorough business plan to your lender can strengthen your application. 

As you submit your application, ensure you clearly understand what you can afford and how you’ll repay the loan. To learn more about what you need to qualify for a business loan, unlock actionable insights at mySMBscore discover personalized business loan options

Best banks for dental practice loans

We identified 8 banks that offer loans for dentists which include:

  1. Bank of America: They offer specialized loans for dentists, including practice loans for expansion, relocation, or renovation. They also provide equipment financing and commercial real estate loans.
  2. Wells Fargo: Known for their Practice Finance program, Wells Fargo provides loans for buying, starting, or expanding a dental practice. They also offer equipment financing and a range of other financial services.
  3. U.S. Bank: Offers various business loans that can be used for dental practices. They are known for competitive rates and terms.
  4. Live Oak Bank: Specializes in loans for healthcare professionals, including dentists. They offer practice loans, commercial real estate loans, and equipment financing.
  5. TD Bank: Provides loans for dental practices including practice expansion, equipment financing, and real estate loans. They are known for personalized service and competitive rates.
  6. Huntington National Bank: Offers various business loans that can be suitable for dental practices, including term loans, line of credit, and equipment financing.
  7. CIT Bank: Known for healthcare financing, including dental practice loans. They offer practice acquisition loans, expansion financing, and equipment leasing.
  8. First-Citizens Bank: They provide a range of business lending services that can be tailored to the needs of a dental practice, including term loans and lines of credit.

If you need a business loan for your dental practice, banks usually offer decent loan terms. There are other options such as SBA loans, online lenders, and more. In any case we recommend reviewing the terms thoroughly before committing to any loan. In addition, consider reviewing your credit score since this greatly impacts your loan terms.

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