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.
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 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 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.
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.
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.
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.
If you’re looking to obtain a dental practice loan, there are a few things you can do to improve your chances of qualifying.
What will lenders consider when reviewing your loan application? Access personalized insight at mySMBScore now.
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.
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.
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.
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.
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:
There are several benefits to seeking an SBA loan over a conventional loan. A few benefits include
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.
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.
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.
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.
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:
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
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.