Loans for your dental practice expansion — Dental Practice Financing

Financing allows you to spread the cost of high-value equipment like imaging systems over 3 to 7 years. By keeping monthly payments predictable, typically ranging from $1,500 to $4,000 depending on the asset, you maintain liquidity for payroll and operating expenses instead of draining your cash reserves upfront.

Yes, SBA loans generally offer lower rates because they are government-guaranteed, often ranging from 7% to 11%. Conventional commercial loans may have higher rates but can close faster, sometimes within 14 days, compared to the 60 to 90 days often required for SBA processing.

Lenders evaluate your debt-to-income ratio carefully. While student loans are a liability, many dental-specific lenders focus more on the practice's production-to-collection ratio. If your practice generates $800K+ in annual revenue, lenders are often more flexible regarding your personal debt burden.

Valuations are primarily based on the trailing 12 months of collections and EBITDA. Lenders typically look for a stable history of at least $500K in annual collections. They apply a multiple to your net profit to determine the loan amount you qualify for during an acquisition.