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Dental Practice Loans: Best Funding Options for Dentists
Dental practices need capital to not only cover regular expenses but also to invest in future growth. However, these businesses must often wait to get paid by insurance companies for services rendered, which means they may not have that money easily accessible. In that case, a dental practice loan...
Reviewed by: Jen Hubley Lickwaldt, Content Writer and Editor
Dental practices constantly need to reinvest back into the company, whether that’s to pay employees, cover malpractice insurance, or buy high-tech dental equipment to attract new patients.
Even a successful practice may not have the cash on hand to cover these expenses from time to time. They may be waiting for insurance payouts or simply going through a slow period, especially when they first get started.
Rather than struggling through these periods when cash doesn’t flow, there are dental practice loans that can bridge the gap. Learn more about these small business loans.
Our Top Picks for Best Dental Practice Loan
- Best Overall for Equipment Loans and Leasing
- Fast funding
- Early payment discounts
- Best for bad credit loans
- Multiple loan types available
- Funding in 48h
- Soft credit pull
- No monthly fees or prepayment penalties
- Same-day or next-day funding
- Best for business lines of credit
How to Choose the Best Dental Practice Loan
Finding the right dental practice loan for your business is something you shouldn’t take lightly. You want a lending partner that meets your needs, has reasonable terms, and provides great customer service.
We use the following criteria to rank lenders.
- Loan features: How much does the lender offer? What are repayment terms?
- Application process: Is the loan application simple or complex? Does it result in a hard or soft inquiry on a dental practice’s credit?
- Interest rates and fees: What interest rates does this lender charge? Are there other fees?
- Qualification process: What criteria does the lender use regarding credit scores, time in business, or annual revenues?
- Customer support: How can customers reach the lender? Is customer service available by email, phone, or chat?
- Online user reviews: What are other customers saying about the lender on review sites like Trustpilot?
- Perks and bonuses: Does the lender offer a mobile app, flexible payment options, or other features?
Best Dental Practice Loans for 2022 - Full Overview
Now let’s look at some of the best lenders that offer dental practice loans so you can determine which is best for your needs.
1. National Funding - Best For Working Capital Loans
National Funding offers short-term working capital loans, which can help your dental practice cover everyday expenses like payroll and utilities. While you may borrow up to $500,000, you’ll need to repay your loan daily or weekly.
Pros
Cons
National Funding’s working capital business loans range from $5,000 to $500,000 with repayment terms between 4 months and 2 years. Eligibility requirements include a minimum credit score of 600, at least 6 months of operations, and $250,000 or more in annual revenue.
National Funding Features Table
Min. Credit Score | Min. Time in Business | Min. Annual Revenue | Loan Amount | Interest Rate |
600 | 6 months | $250,000 | Up to $500,000 | Undisclosed |
The Bottom Line
If your dental practice has been around for some time, a working capital loan from National Funding should be on your radar. You can reap the benefits of fast funding and even save on your remaining balance if you pay off your loan early.
Try National FundingRead more in the full National Funding review
2. Biz2Credit - Best for Fast Funding
You don’t have time to wait to get the cash your dental practice needs, and with Biz2Credit, you don’t have to. You can get approved for capital within 24 hours of applying, and receive your loan proceeds within 72 hours
Biz2Credit offers working capital loans, term loans, and commercial real estate loans, all of which can be useful to a dental practice.
Pros
Cons
Biz2Credit allows dental practices and other businesses to borrow from $25k up to $6 million. Its term loans have a maximum of $500k. Loans can be used to hire staff for your dental practice, buy equipment, expand your business, or pay down other debt, and repayment periods for loans are 36 months.
To qualify for a working capital loan with Biz2Credit, you must have a personal credit score of 575 or more, be in business for at least 6 months, and have annual revenue of at least $250,000.
Biz2Credit Features Table
Min. Credit Score | Min. Time in Business | Min. Annual Revenue | Loan Amount | Interest Rate |
575 | 6 months | $250,000 | $25k - $6 million | Starting at 7.99% |
Bottom Line
If you need cash fast for your dental practice, Biz2Credit won’t keep you waiting. And with a dedicated funding specialist, you’ll make sure to get the best financing option for your needs.
Try OnDeck
Read more in the full Biz2Credit review
3. Fundbox - Best for Dental Equipment Loans
Sometimes taking out one loan for your dental practice isn’t enough long-term. With Fundbox, you can take out one business line of credit and repay it, hen take out a second (or third) loan without reapplying.
You can use a Fundbox loan to buy equipment for your dental practice, invest in marketing, or hire more employees as you grow.
Pros
Cons
Fundbox offers both term loans with repayment terms of 24 or 52 weeks, and lines of credit with repayment terms of 12 or 24 weeks.
If you’re interested in a Fundbox loan or line of credit, you must have annual revenues of $100,000 or more, be based in the U.S., and be in operation for 6 months old or more. You must also have a credit score of at least 600. Additionally, you need a business checking account. You may be required to provide a personal guarantee for a loan, and the lender may place a lien on your assets.
Fundbox Features Table
Min. Credit Score | Min. Time in Business | Min. Annual Revenue | Loan Amount | Interest Rate |
600 | 6 months | $100k | Up to $150k | Starting at 4.66% |
The Bottom Line
If you aren’t sure how much money your dental practice will need long-term, having the ability to take out multiple loans with the same lender without reapplying can be a major benefit. Fundbox makes it easy to always have access to working capital.
Try Fundbox
Read more in the full Fundbox review
4. Fora Financial - Best for Less-Than-Great Credit
Not every business has excellent credit, and for dental practices with scores under 600, it may be challenging to find financing. Fora Financial looks at criteria other than your credit score, so you may qualify for financing when you couldn’t with other lenders.
Pros
Cons
With Fora Financial’s small business loans and merchant cash advances, you can borrow $5,000 to $750,000. You must repay the loan within 15 months.
To qualify for a dental practice loan or merchant cash advance, your business must generate at least $12,000 monthly and be in operation for at least 6 months.
Fora Financial Features Table
Min. Credit Score | Min. Time in Business | Min. Annual Revenue | Loan Amount | Interest Rate |
n/a | 6 months | $5,000 credit card sales or $12,000 gross sales | $5,000 to $750,000 | Not disclosed |
The Bottom Line
Having a low credit score shouldn’t keep you from being able to get working capital to grow your dental practice. Fora Financial sees you as more than just a credit score and will look at other criteria to get you the money you need.
Try Fora Financial
Read more in the full Fora Financial review
5. Bluevine - Best for Lines of Credit
If you expect your dental practice to need extra cash over time, rather than all at once, a line of credit from Bluevine can get you the access you need to that capital. Pay back what you borrow and you can borrow it again and again.
Additionally, Bluevine offers an interest checking account, so you can make money when you use it.
Pros
Cons
Bluevine’s line of credit allows you to borrow up to $250,000 for your dental practice, and what you borrow must be repaid in either 6 or 12 months. Payments are taken monthly or weekly.
Qualification requirements include: being U.S.-based, in operation for at least 6 months, a credit score of 625 or more, and $10,000 or more in monthly revenue
BlueVine Features Table
Min. Credit Score | Min. Time in Business | Min. Annual Revenue | Loan Amount | Interest Rate |
625 | 6 months | $10,000 a month | Up to $250,000 | Starting at 4.8% |
The Bottom Line
Sometimes a one-time loan isn’t what your dental practice needs. If you like the idea of being able to borrow and pay back money and borrow it again, a Bluevine line of credit could be just the thing.
Try BlueVine
Read more in the full BlueVine review
6. Fundera by Nerdwallet - Best for Multiple Offers in One Place
Fundera allows you to save time by filling out one application and then having the lenders come to you. Fundera’s lending partners offer startup loans, lines of credit, SBA loans, term loans, and equipment and invoice financing, so you’re sure to find the right fit for your dental practice.
Pros
Cons
With such a wide range of loan options, you can find exactly what your practice needs in terms of the amount of cash and repayment period. For example, a business term loan through Fundera provides up to $600,000, with a repayment period of 1 to 5 years. Equipment financing provides up to 100% of the equipment value and also has a repayment period of 5 to 6 years.
Qualifications may vary slightly depending on the lender, but generally you will need a credit score of at least 550 and time in business of 1 year or more. You’ll also need annual revenues of $150,000 or more.
Fundera Features Table
Min. Credit Score | Min. Time in Business | Min. Annual Revenue | Loan Amount | Interest Rate |
550 | 1 year | $150,000 | Up to $5 million | Varies |
The Bottom Line
Saving time is key in your dental practice, and with Fundera, you don’t waste time while getting all the financing options delivered directly to you. Choose the one that best fits your needs and get back to running your practice.
Try Fundera
Read more in the full Fundera review
7. Torro - Best for Startup Funding
If you’re just starting out with your dental practice, you may find a lot of doors shut in your face when it comes to finding financing, as many lenders don’t work with brand-new businesses. But Torro is a lender that does offer startup financing, which you can use to buy equipment like X-ray machines and chairs, hire staff, and invest in marketing to launch.
Pros
Cons
With one application, you can see what rates and terms you qualify for from multiple lenders from Torro’s syndicated network of investors and financial resources. Existing businesses can qualify for up to $575,000, while startups can get up to $125,000. Repayments must be made between 3 and 24 months.
To qualify for financing, you will need a credit score of 680 or higher and $120,000 in annual revenue. If you’re applying for a business capital loan, your business must be in operation for at least 6 months. This requirement is waived for startup loans.
Torro Features Table
Min. Credit Score | Min. Time in Business | Min. Annual Revenue | Loan Amount | Interest Rate |
680 | 6 months for business capital loans; less than 6 months for startup loans | $120,000 | Up to $575,000 | Varies |
The Bottom Line
If you’re just starting out, you shouldn’t be limited in your ability to secure financing for your dental practice. With Torro, you can compare offers from multiple lenders to find the one that best fits your needs.
Try TorroRead more in the full Torro review
8. Credibly - Best for SBA Loans
For those dental practices that qualify, a loan backed by the Small Business Administration can provide low-cost financing with a long repayment period. Credibly provides SBA loans and great customer service.
Credibly offers SBA loans for working capital, commercial real estate, debt consolidation, and equipment purchases. If none of those fit, Credibly also offers a wide range of other financing solutions, from lines of credit to merchant cash advances.
Pros
Cons
Credibly can help you get the SBA loan your dental practice needs to grow, whether you’re looking to open a second dental office or buy the latest X-ray machines.
To qualify for an SBA loan, your practice must be in operation for at least 2 years with $100,000 or more in revenues. You must have no outstanding tax liens, and no bankruptcies or foreclosures over the last 3 years. You must be a U.S. citizen or lawful permanent resident with a personal credit score of at least 620.
Credibly Features Table
|
Min. Credit Score |
Min. Time in Business |
Min. Annual Revenue |
Loan Amount |
Interest Rate |
|
620 |
2 years |
$100,000 |
Up to $20 million |
Starting at 6.99% |
The Bottom Line
An SBA loan from Credibly offers lower interest rates than you’ll likely find anywhere else, and you’ll have years to repay your loan. That money can be used for a variety of purposes, all of which can help your dental practice grow.
Try Credibly
Read more in the full Credibly review
Best Dental Practice Loans - Features Comparisons
Company | Min. Credit Score | Min. Time in Business | Min. Annual Revenue | Loan Amount | Interest Rate |
National Funding | 600 | 6 months | $250,000 | Up to $500,000 | Undisclosed |
Biz2Credit | 575 | 6 months | $250,000 | $25,000 - $6 million | Starting at 7.99% |
Credibly | 620 | 2 years | $100,000 | Up to $20 million | Starting at 6.99% |
Fundbox | 600 | 6 months | $100,000 | Up to $150,000 | Starting at 4.66% |
Fora Financial | n/a | 6 months | $5,000 credit card sales or $12,000 gross sales | $5k to $750k | Undisclosed |
Bluevine | 625 | 6 months | $10,000 monthly | Up to $250,000 | Starting at 4.8% |
Fundera | 550 | 1 year | $150,000 | Up to $5 million | Varies |
Torro | 680 | 6 months for business capital loans; less than 6 months for startup loans | $120,000 | Up to $575,000 | Varies |
What Are the Costs of Opening a Dental Practice?
Starting a New Dental Practice
If you want to start your practice from scratch, you might want to go for a business startup loan. Usually, these types of loans begin with interest-only or low payments that restrict your expenditures during the opening phase and initial construction. In this case, lenders might release the fund disbursements over time, by paying your contractors progressively. This can reduce the amount of interest you need to pay.
Buying an Existing Dental Practice
There are pros and cons to buying an existing dental practice instead of building one from scratch. You will likely need to look for a loan such as dental practice financing that will cover equipment upgrades or renovations plus the purchase price.
Working Capital Financing
If you have a practice that is already up and running, you might need help sustaining cash flow, especially during a slow business period. An online lender that gives quick funds may be your best option because it will provide you with quick access to cash.
Dental Equipment Financing
This type of financing might be easier to get than a dental practice loan because you can use the equipment as collateral for the loan. Unlike small business loans, dental equipment loans might not be amortized. This means that the loan amount comes with the financing charge. This means that paying off the loan before due time won’t save you money as the interest doesn’t accrue over time.
Dental Software Financing
Software purchase and licensing needs for your dental business can grow over time–anywhere between hundreds of dollars to thousands of dollars. As your practice grows, your technology needs might change. You may also need funds to teach staff how to use the new software.
How to Qualify for Dental Practice Loans
While each lender will have different requirements for approval, there are a few things to consider before applying for a dental practice loan.
- How you’ll spend the money: Before taking out financing, make sure you have a budget for the money so you spend it to grow your practice. This can be part of your business plan.
- How the money will make more money: Ideally, the money you borrow will help you generate more profits. However, don’t bank on this and take out more debt than you can afford to repay.
- Your credit situation: Your personal credit may impact the types of loans and rates you qualify for, so if you have bad credit, you may be limited in your options.
- Your plans for the future: This loan may serve as a stopgap during a slow revenue period, though ideally, it will help you grow your business over time. Consider what your long-term goals are for the practice.
What Can You Use Loans for a Dental Practice For?
Let’s look at a few of the ways you can use your dental practice loans to improve your business.
- Hire staff: As your business grows, you may need to hire additional administrative staff, hygienists, or dentists to better serve your growing dental practice.
- Marketing: Getting the word out about your practice takes time and money, and a loan can help cover the costs of advertising and marketing.
- Equipment: Dentistry has seen some leaps forward in terms of technology, and having the latest equipment, such as X-ray machines, can help you attract more patients.
- Startup costs: Starting a practice can be costly, with remodeling fees, payroll costs, equipment, and supplies. A loan can help.
- Slow periods: If your business sees fewer patients during certain months, it may be challenging to pay your bills. A loan can serve as a stopgap until revenues pick up.
Conclusion
A dental practice loan can help you do more in your business by providing the capital you need to launch or grow. Choosing the best financing option is up to you. Be sure to shop around, as dental practice loan interest rates may vary from one lender to another.
Frequently Asked Questions(FAQ)
Can You Qualify for Dental Practice or Equipment Financing with Bad Credit?
How Many Years Will You Have to Finance Dental Equipment?
About the Author
Written by: Susan Guillory
Susan Guillory is an intuitive business coach and content magic maker. She’s written several business books and has been published on sites including Forbes, AllBusiness, and SoFi. She writes about business and personal credit, financial strategies, loans, and credit cards.
More about me
Reviewed by: Jen Hubley Luckwaldt
Dominique Broadway is an award-winning personal finance expert. She provides advice on all areas of personal finance including student loans. Her advice has been featured in numerous publications. Dominique is committed to helping tackle the student loan crisis and helping individuals make informed financial decisions.
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