Dental Practice Loan Guide | Student Loan Planner

There are many people who decide to pursue the career of dentistry. It is a noble calling to be able to make people’s smiles beautiful and healthy. However, an aspiring dentist would have to consider many things in order to be able to make this dream come true. The cost of education is quite expensive, and the field is very competitive. However, there is hope. There is a way for you to pursue your dream of becoming a dentist without going into too much debt. In this article, I will share with you the steps you need to take in order to be able to pursue your career of choice without drowning in debt.

The cost of tuition is rising each year and students are having a harder time paying for school. While scholarships, grants, work-study, and student loans can help, it may not be enough to cover everything. Some students are turning to another source to bridge the gap between the cost of tuition and financial aid: Dental Practice Loans. These loans can be used to pay any school-related expenses that need to be covered, such as tuition, housing, books, and even meals. Students should be aware of the guidelines and requirements for dental practice loans before choosing this option.

According to the latest data from the American Dental Education Association, the average 2019 dental school graduate has $292,169 in student loan debt. It’s a big financial hole to get out of!

One of the best ways to pay off your loans faster can be to open your own practice. However, the American Dental Association (ADA) states that it takes about $500,000 in working capital to open a typical dental clinic. How do you find that funding when you just got out of dental school with a mountain of debt?

Fortunately, there are special financing options for dentists. In this guide, we’ll look at what dental practice loans are, where you can find them, and what you should consider before financing a dental practice.

What are dental credits?

Dentists have several advantages that have traditionally made them attractive to lenders.

First, they have a healthy income that averages six figures per year, according to the Student Loan Planner. Second, dental clinics, like other medical professions, are something of a recession-proof business. During an economic downturn, people may not go to restaurants more, but they will get rid of their toothache sooner. And third, dentists have historically had one of the lowest waiver rates in the medical industry.

For these reasons, many lenders offer financing to help you start your dental practice. To begin your search for the right lender, you need to learn more about the different types of dental clinic loans.

Credit forms for dental clinics

Dental practice financing can take the form of an installment loan or a commercial line of credit. Dental practice loans can be used for a variety of purposes, for example B :

  • Takeover of existing practices
  • Beginning of a new practice
  • Acquisition of an existing practice
  • Expansion of existing practices
  • Acquisition of commercial property

Finally, many lenders offer financing for dental equipment, which can be used to purchase dental chairs, x-ray machines, computers, etc. Since these loans are guaranteed by the equipment, they are easier to obtain.

Do the real estate practice questionnaire!

3 Considerations for applying for practice funding

Are you wondering if a practitioner loan is for you? You should think about that first.

1. Do you have a good credit rating?

Lenders in dental practices are used to new dentists having a high debt-to-income ratio. But to reduce their risk, they still want you to have a good credit score. And if you’ve taken out small business loans before, they’ll also want to see a solid business record.

According to MyFICO, a score of more than 670 is considered good and a score of 740 or more is considered very good. You can check your credit score with your bank or credit card issuer, or use a free credit score website like Credit Karma or Credit Sesame.

2. Do you have a business plan?

As mentioned earlier, lenders want to reduce risk. Therefore, dentists, like other entrepreneurs, are required to include a solid business plan with their loan application.

If you don’t know how to create a business plan for a new dental practice, the ADA has an excellent guide for beginners. Here are some things he recommends including in your plan:

  • Statement on the business concept
  • External environment and sector analysis
  • Products and services offered (and those you plan to offer in the future)
  • Growth strategy
  • Marketing strategy
  • Details of the operation
  • Management philosophy and strategy
  • Financial analysis
  • Risk analysis

Read the full ADA guide for more information on preparing a business plan for new dental practices.

3. Are you eligible for a group discount?

When looking for dental clinic financing, pay attention to closing commissions and other administrative fees. One way to save money is to take advantage of the group discounts available.

Are you a member of the ADA or other professional associations? If so, you can find dental lenders that offer exclusive discounts on membership fees.

For example, BMO Harris offers ADA members a 0.50% discount on the rate. And Bank of America gives 50% off administrative fees to dentists with more than 20 dental associations.

Where can I get a loan for a dental practice

There are three main places to look for a dental practice loan. Here’s what you need to know about each option.

Banks and credit unions

For most dentists, banks or credit unions should be the first place they fund their practice. Yes, you can apply for traditional small business bank loans anywhere. However, you can look for lenders that offer loans specifically for dentists.

For example, with a Practice Solution loan from Bank of America, dentists can get up to $5 million in financing. Bank of America dental practice loans or lines of credit can be used for the acquisition or expansion of an existing practice or for debt consolidation. Each of these convenient loans offers flexible repayment terms of up to 15 years and currently offers low introductory interest rates (or fee waivers) for applications submitted before the 30th. June 2021.

And don’t forget it: BofA cuts dental loan processing fees in half if you are a member of one of our affiliated dental associations. U.S. military veterans can also receive a 25% discount on loan costs. And if you’re a Preferred Rewards for Business customer, you can get a reduced interest rate of 0.25% to 0.35%.

Other banks also offer loans for dental clinics. Live Oak Bank, Wells Fargo and U.S. Bank are just a few examples. You can also check with local banks or credit unions in your area to see if they offer special loan programs for dental clinics.

Other financing sources

There are several alternative financing options for small businesses, including. B. Non-bank lenders (lenders without a full bank license), peer-to-peer lending and crowdfunding.

According to a recent study by the Pepperdine Graziadio Business School, financing options for small businesses without a bank are taking off. Nearly 30% of businesses in the sample said they used online lenders, 20% more than in the previous quarter.

Often these lending options are the first online businesses that have few or no physical branches. And they usually use technology to reduce costs or speed up the application process. Here are some popular alternative lenders that offer small business loans:

Online lenders are easier to deal with than banks, but that doesn’t necessarily mean they are the best choice. You should always compare rates and terms with all types of traditional and non-traditional lenders.

Small Business Administration

Don’t want to get a practice loan from a bank or alternative lender? In that case, you can consider getting a loan from the Small Business Administration. Technically, the SBA is not a creditor. Instead, it guarantees SBA loans from lenders in its partner network.

This SBA guarantee reduces the lender’s risk. And it can make it easier for you to get funding for your dental clinic. In addition, this type of loan can offer other benefits, such as. B. a reduced deposit or no deposit required. Here is a short list of facts about SBA loans:

  • Loan amount : Up to $5 million
  • Interest rate : Fixed or variable interest rates are available, usually no higher than prime +2.75% (higher rates may apply to loans under $50,000).
  • Conditions: Generally up to 25 years for real estate and up to 10 years for other assets.
  • Credit guarantee: from 50% to 90%.

To obtain an SBA loan, you must have exhausted all other financing options (i.e., you have already tried to obtain financing from banks and alternative lenders). And you must meet the SBA’s small business standards.

How to choose the right loan for the practice

Ultimately, the best loan for your own practice depends on your credit rating and how you plan to use the funds. If you have a good credit history and a good business plan, a conventional loan from a bank may be a better choice.

But if your application for a loan at a traditional bank or credit union has been rejected, you have options. You can always get financing from an alternative lender or through an SBA loan. Just pay attention to the loan terms and costs and look for the best deal.


Take our 15-question quiz and find out in 2 minutes if you’re ready to start a
practice (we’ll also give you a $500 Amazon gift card if you accept a credit from one of our referral partners).

Do our questionnaire.

Best offers for refinancing of dental schools

BONUS of $1,000 for 100,000 or more. 200 for 50,000 to 99,999¹.

variable 1.99% – 5.64% APR1
fixed 2.98% – 5.79% APR1

1,250 BONUS2 For 250k+, tiered bonus from 300 to 500 for 50k-250k.2

1,275 BONUS3 For 150,000 and above. Multi-level bonus from 300 to 575 for 50k to 149k.3

variable 2.39% – 6.01% APR3
fixed 2.79% – 5.99% APR3

1,000 BONUS4 for $100,000 or more. 200 for $50,000 to $99,9994.

variable 2.25% – 6.43% APR4
fixed 2.99% – 6.88% APR4

1,050 BONUS5For 100k+. 300 bonus for 50k to 99k.5

1,250 BONUS6 for 100k+ or $350 for 5k to 100k.6

1,250 BONUS7 For $150,000 or more. Multi-level bonus from 100 to 400 for 25k to 149k.7

variable 1.91% – 7.69% APR7
fixed 2.95% – 8.49% APR7

This source has been very much helpful in doing our research. Read more about pnc dental practice loans and let us know what you think.

Frequently Asked Questions

Can dentist make 1 million a year?

If you are a dentist and looking for a way to earn a million dollars a year, you should consider starting your own dental practice. For those who are new to this, here are 4 steps you should consider before you launch your new dental practice. Dentistry is one of the highest paying professions in the medical field, and it is not hard to see why. The average dentist makes over $144,000 a year, and even the least experienced dentists can expect to make over $80,000 per year. In short, becoming a dentist is a good idea if you want to earn a lot of money, and this guide will show you how to become a dentist, and what to expect when working as one.

How long does it take to pay off student loans for a dentist?

This article will cover how long it takes to pay off a dentist loan if you have a steady dental practice income. Dentists who are just starting out in their practices or who are in the process of getting their practice started will be able to use this information to determine if they will be able to pay off their loans at the time that they were given. This is because it will be possible to work out how long it will take to pay off a loan based on the dental practice’s income. It’s not uncommon for dentists to pay off their student loans for the rest of their lives. No matter how much money you make, the question remains: how long will it take to pay off my student loans? How long it takes to pay off your student loans is dependent on three major factors: the amount you borrowed, your current interest rate and your current level of income.

What is the fastest way to pay off dental school debt?

According to the American Dental Association, the average dentist graduates with about $200,000 in school loans. Since the average income for a dentist is about $150,000 per year, that is a huge debt to pay off in just a few years. This article will explore some of the options available to dentists looking to pay off their school loans as quickly as possible. There are different approaches that can be taken when it comes to paying off dental school loans. The fastest way to pay off dental school debt is not the only way to go about it, and there are some great methods that are worth considering. However, if you are looking to really make a dent in your debt and really get on track to paying off your loans, the fastest way to do it is to select a flexible repayment plan (consolidation, income-based repayment, extended repayment) and pay off your loans as quickly as possible.

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