Finance the Purchase
of a Dental Practice
Purchasing a dental practice is an exciting and rewarding career step for many dentists.
Pre-qualify
Enabling you to purchase
the practice of your dreams
We can support you with financing in any step of your
journey to becoming a dental practice owner
Evaluate Your Financial Situation
Before deciding to purchase a practice, it's important to assess your current financial health. Lenders will take a deep look at your credit score, existing debt, and financial history. Understanding your finances helps you determine your needs and improves how lenders view your financial situation.
Key Financial Metrics Lenders Evaluate:
Credit score
A strong credit score (700 or higher) can qualify you for lower interest rates.
Debt-to-income ratio
Lower ratios make you a more attractive candidate for loans.
Cash reserves
Lenders may require a certain amount of liquidity to ensure you can cover any unexpected costs.
Types of Practice Lending
Specialized loans are available for dentists looking to acquire practices or vacant office spaces. These loans differ from traditional business loans because lenders recognize the relatively stable income potential of dental practices. That said, you will still need to research and compare different loan options to find the best terms.
Common Types of Loans:
Dental Practice Loans
Lenders offer specialized loans for healthcare professionals, with competitive options from companies like US Dental.
Conventional Business Loans
These loans, offered by banks, have shorter repayment periods and higher rates but usually offer faster approval.
SBA Loans
SBA loans offer low rates and long terms but are harder and slower to get than traditional loans.
Seller Financing
Seller financing is rare, requiring higher down payments and shorter terms, often with a secondary note to a bank.
Learn More About How to Finance Your Practice
Read this comprehensive guide through all the financial aspects of buying a practice, navigating lending, and boosting your buying power.
Read moreCompare Interest Rates & Loan Terms
Interest rates play a crucial role in the total cost of acquiring a dental practice. A lower interest rate can significantly reduce your monthly payments and the overall amount you pay over the life of the loan. Shopping around and comparing interest rates across different lenders is essential. Keep in mind that rates are often influenced by:
Your credit score
A higher credit score generally leads to lower interest rates, as it indicates a lower risk to lenders.
Loan term length
Longer loan terms may result in higher rates, while shorter terms often have lower rates but higher monthly payments.
Loan amount
The size of the loan can impact the interest rate, with larger loans potentially attracting higher rates.
Down payment
A larger down payment reduces the loan amount and can lead to more favorable interest rates.
To get the best rate, consider working with lenders who specialize in dental practice financing, as they understand the specific risks and rewards involved. When you get a quote from Provide or another healthcare-focused lender, they may offer more competitive rates and better loan structures for dental professionals.
