Dental Practice Loans
Financing your Dentist Business
The majority of dental specialists begin as an associate working under somebody else who has a busy practice. For some dentists, it's their entire career and for others it's only a few years. If your goal is to have your own practice one day in the future, you should pounce on the opportunity once you become comfortable in your healthcare skills.
As a dentist, you want your practice to stand out from competitors in order to bring in new patients and earn their trust. Competition in some cities for patients is intense and dentists understands this aspect. Unfortunately, it will likely get more challenging because estimates for the number of dentists to increase non-stop until the year 2035.
A smart investment in your dental practice is to get the right equipment for your clinic. New equipment separates you from your competitors in a significant way. Fortunately, you may be able to get a loan for new equipment and showcase it prominently in marketing campaigns. Besides that, new state-of-the-art dental equipment enables you to make people feel less anxious about your dental procedures.
Overall, a clinic that has modern equipment and advanced technical aids helps dentists provide an experience completely different from what patients are accustomed to. That's a big advantage for building a pool of clients and getting referrals.
loan on new equipment will pay for itself in other ways too. You may be able to bring in other practitioners to expand the range of services you offer or open up new streams of income with additional services. Your ambition and creativity can make your return on investment unlimited.
The majority of dental practice lenders offer payments on 10- or 15-year fixed amortization terms. Furthermore, some lenders give you the option of a tiered plan, which means that your payments would go up over time as your practice thrives with time. Let's say your dental business gets approved for a $300,000 loan, with an amortization period of 10 years your payment for the first three months is $0, then the next nine months it's $1,722, and $2,583 for the next 24 months, $3,838.62 for the remaining years 12 years.
Rates of interest and payment terms may not be as favorable with a business loan so look into a refinancing your home or your investment property if it makes sense. There are still stated income loans in California on investment property and lines of credit that may suit your needs. It is recommended to consult with your tax advisor about how to best structure this new business debt.