Finding and obtaining the best dental practice loan is challenging in many ways, even if you’re an experienced dentist. However, there are many ways of funding to start and grow your business in 2022.
According to a 2021 report by the American Dental Association, 90% of dental patients were ready to visit their dentists post the COVID-19 pandemic. But, do you know that around 75% of adults fear a visit to a dentist? As per studies, 3 out of 4 patients say that they experience anxiety when they think of a dental emergency.
Now, if you have the highest quality dental services and a way to make your patients relaxed, you can have a high-traffic dental clinic. The only problem is dental practice funding to start a clinic and get the required equipment.
But, the problem can be solved by knowing the best ways to obtain a loan for financing your dental services. Let’s have a look at the options for dental equipment financing:
- What are the Different Funding Types for Dental Practices?
The answer is: There are many options to fund a dental practice. One option you’ll choose depends on the loan provider you select. You can make a decision considering the amount of loan you require and the time you have to collect the money.
Your options will be:
- Small Business Administration Loans
Popularly known as the SBA loans, these are funding options backed by the Small Business Administration and offered by banks and online lenders. Although these types of loans are among the best dental practice loan options, their application process takes a long time. It means if you require quick money, you must look for other options than the SBA loans.
- Commercial Real Estate Loans
These are long-term loans that you can obtain to start/renovate your new dental clinic or refinance your current real estate loan. The amount of money you receive depends on a lender, but it can be up to $6 million.
- Short Term Loans
As the name suggests, these types of loans are apt for meeting your temporary dental clinic needs. The time to pay back the loan can be between one year and three years. These types of loans are taken to maintain the cash flow of your business.
- Who are the Different Dental Practice Loan providers?
Ideally, there are two types of loan providers who help you when you require dental practice funding:
- Traditional banks
- Online lenders
Traditional banks are among the most trusted loan providers that have been helping businesses for years. However, the only reason many businesses look for alternatives is the process of traditional banks. First, each bank has its own criteria of underwriting. Apart from that, the bank may require you to have an excellent credit score to qualify for the loan.
Online lenders are modern-day loan providers that are easy to approach. In addition, they take fewer days than traditional banks to deposit the loan amount to your account. You can get a loan from an online lender for opening a new practice, dental equipment financing, investing in advertisement, employee training, etc.
- The Bottom Line: What Should You Choose?
Financing a dental clinic is necessary to start your practice and maintain a healthy environment for patients. In addition, you require the best equipment to ensure that your patients get the best services and care.
Although it may be a challenging task to explore multiple loan options and choose one of them, it is essential to spend some time on research and make an informed decision. It is the only way to ensure that your practice succeeds and you have a successful business.
All the best!