Dentistry is a thriving business in America. According to Dental Economics, the profession of dentistry has grown some 250% since the 1950s. It’s expected to become a $170 billion industry by the year 2020, based on data from the U.S. Centers for Medicare and Medicaid Services. Dental service rates have also gone up, but only by about 2.8% since the 2007 recession.
THE ACA AND THE IMPACT FELT BY DENTAL PRACTICES
What’s impacting the dental practice of today the most is the Affordable Care Act that put requirements on consumers and employers alike to provide dental coverage to millions more children. While it is generally viewed as a positive, this has also forced small dental practices to seek out additional working capital to update equipment, staff, and even facilities in order to compete with larger dental groups. The opportunity to meet the dental needs of the next generation are here, but it takes finances and small business loans to make it happen.
BENEFITS OF WORKING CAPITAL LOANS FOR DENTAL PRACTICES
There are several benefits of working capital loans for dental practices to consider, for building and maintaining a strong business. These benefits include:
Quality dental staff – It costs money to hire good people, particularly those who are well trained dental specialists. According to the 2016 State of Small Business Report from Wasp Barcode Technologies, the top challenge facing small businesses is hiring new employees. Having access to working capital means there is enough money in the budget to offer generous salaries, benefits, and sign on bonuses to quality dental employees.
Reducing overhead and debts – A smart dental practices understands the importance of keeping overhead and debts low, especially with delays in dental insurance claim payouts that can take months. Small business loans can provide a buffer to insure the practice stays ahead of bills and other expenses too, while waiting for other income to arrive. Merchant cash advances can also help maintain excellent credit.
Reinvestment opportunities – It’s a good business practice to use working capital for investing in the dental practice on a regular basis. Focusing at least a portion of the budget on adding better equipment, improving the experience for consumers with improved technology, and advertising more heavily can all boost the economic outlook of any dental business.
Managing cash flow – The dental industry often experiences peaks and valleys in business. When business is good, the finances are flowing in; when things are slow, the finances can dry up. A working capital loan can ensure that there is a positive cash flow occurring at all times. Accounts receivable loans for dental businesses can be an attractive option for maintaining adequate cash all year round.
Adding new features and services – Every dental business has to compete for business, therefore adding new features and services to benefit patients can lead to long time success. The Wasp Barcode Technologies report indicated that 43 percent of small businesses were focusing on improving the existing experience and retention in 2016 as a way to improve revenue growth. A small business loan can provide the funding necessary to purchase equipment, upgrade the office, hire dental specialists who offer advanced services, invest in more effective marketing, and more.
HOW TO OBTAIN WORKING CAPITAL LOANS FOR DENTAL FIRMS
As a dental provider, you may be asking how you can go about getting your hands on some working capital to fund your business goals? It’s an easy two-step process.
First, look for the features you want in a financial vendor. Small business lenders are not all the same. Choose one with experience working with dental practices for the best chance of getting the working capital you need, and at competitive rates and flexible repayment terms. You’ll also want to be able to speak with a live financial representative to help you with any questions you may have during the process. Establish a long-lasting and positive relationship with United Capital Source, a leading small business loan provider for dental practices.
Position your dental firm for success by getting ready for a small business loan. It’s important to avoid any of the mistakes you may have made in the past in regards to your dental business; factors that can affect your ability to maintain good finances now. Work on building a solid credit history for your practice by paying down as many debts as possible, generating additional forms of income with new dental programs, staying current with payroll and taxes, and collecting on your receivables. Get all utilities, credit accounts, and other bills related to your business paid up to date. Now you can confidently apply for a small capital loan for your dental practice, knowing you are set up for success.
Ask yourself if now is the right time to apply for a small business loan by reviewing the above benefits to obtaining working capital. Then reach out to United Capital Source to talk with someone who understands your business and can help you obtain the funding you need.