🦷 Tailored Financing for Dentists: Specialized loans designed to meet the unique needs of dental practices, including equipment upgrades, marketing, and managing insurance reimbursements.
💳 Diverse Loan Options: Access to various financing solutions such as equipment financing, working capital loans, and revenue-based financing to support different aspects of your practice.
⚡ Quick & Easy Application: Streamlined application process with fast approvals, allowing you to secure funding promptly to address your practice’s needs.
📈 Support for Growth: Loans can be used to expand your practice, invest in new technology, or enhance marketing efforts to attract more patients.
📞 Free Consultation Available: No-cost, no-obligation quotes and consultations to help you explore the best financing options for your dental practice.
🌐 Nationwide Service: Serving dental professionals across various states, ensuring accessibility to funding regardless of your location.
🛠️ Flexible Funding Amounts: Options to request working capital ranging from $5,000 to over $10 million, catering to practices of different sizes and needs.
The requirements for a successful dental practice have undergone significant changes in recent years. Newer technology offers less invasive methods for performing services such as X-rays and fillings. Additionally, there is a need to market your practice to patients seeking low-cost plans consistently.
Covering these expenses would be easier if dentists didn’t have to wait weeks (or even months) to receive reimbursements from insurance carriers. And when you’re preparing for the busy season, delinquent payments can’t stop you from obtaining the necessary resources to meet the upcoming surge in demand.
United Capital Source offers dental practice loans designed to help dental businesses remain competitive, despite the complexity of their payment structures. Many of these funding solutions can help succeed in the dental industry.
Dental Practice Business Loans are specifically designed to address the cash flow cycles and periodic expenses of dental practices. Besides covering short-term needs and large purchases, dental practice loans can bridge gaps in cash flow while dentists await reimbursements from insurance providers. The loan process helps provide capital to maintain cash flow for the dental office.
Business loans for dental practices can come in the form of:
Each of the lending products listed above can suit a different type of expense or cash flow issue. For example, let’s say you need to cover payroll and other monthly bills while awaiting reimbursements from insurance providers. Possible solutions for this common dilemma include a business Line of Credit and Accounts Receivable Factoring.
A Business line of credit works best when the reimbursements are expected to come in shortly. Your interest rate depends on how quickly you can pay off the full balance. However, you may not be sure how long it will take for the provider to pay. Perhaps you need cash now, and the reimbursement may not arrive until the following month. Accounts receivable factoring was designed for this exact situation.
You would sell the unpaid receivables for a discount price (at least 85%). Instead of waiting weeks or months for compensation, you’d get cash in just a few business days. It is now the responsibility of the factoring company to collect the payment from the insurance provider. When the payment is received, you get paid the remainder from the first sale, minus fees.
If you have subpar credit or a rocky cash flow, you may want to consider a merchant cash advance instead. This highly accessible option allows you to borrow against the strength of your sales. For many dentists, this is the preferred payment method for their patients. You could access enough cash to cover operational expenses during a slow period without making substantial payments until business picks back up.
Dentists sometimes struggle with financing needs due to high levels of debt, such as student loans from dental school. Some loans provide funding for debt consolidation. You can improve your cash flow by consolidating bills into one low monthly payment.
Established dental practice owners with excellent credit can consider SBA business financing options. SBA loans provide funding for significant investments, such as purchasing commercial real estate for your dental practice. SBA loan programs offer substantial loan amounts and extended loan terms, but may require collateral.
The Small Business Administration partially guarantees these loans. SBA loans are subject to SBA eligibility guidelines. Other business loans, such as term loans, can also provide real estate financing.
| LOAN TYPES | MAX AMOUNTS | RATES | SPEED |
|---|---|---|---|
| Merchant Cash Advances | $7.5k – $1m | Starting at 1-6% p/mo | 1-2 business days |
| SBA Loan | $50k-$10m | Starting at Prime + 2.75% | 8-12 weeks |
| Business Term Loan | $10k to $5m | Starting at 1-4% p/mo | 1-3 business days |
| Business Line of Credit | $1k to $250k | Starting at 1% p/mo | 1-3 business days |
| Receivables/Invoice Financing | $10k-$10m | Starting at 1% p/mo | 1-2 weeks |
| Equipment Financing | Up to $5m per piece | Starting at 3.5% (SBA) | 3-10+ business days |
| Revenue Based Business Loans | $10K – $5m | Starting at 1-6% p/mo | 1-2 business days |
Dental practice business loans help smooth out your cash flow, allowing you to consistently obtain the resources needed to serve as many patients as possible. You can stay up to date with equipment, pay recurring bills on time, and stock up on supplies ahead of the busy season. When business slows down, you can maintain advertising campaigns and cover operational expenses despite decreasing revenue.
The same concept applies to gaps in cash flow due to delinquent insurance payments. You can stay current on bills and cover sudden expenses rather than waiting until compensation arrives in the coming weeks or months, which is a common challenge in the healthcare industry.
It’s also important to note that most dental practice loans can be accessed very quickly. This means that when a piece of equipment breaks or you become low on supplies, you can have a solution in place just a few days later. You don’t need entirely consistent cash flow to get approved, so you’ll still have plenty of options during slow periods.
Lastly, even though most dentists began their careers intending to help people, they must also stay competitive, like any other business owner. This might involve ramping up their advertising or renovating their waiting area. The medical payment structure doesn’t make it easy to save for growth, hence the necessity for additional funding.
Dentists may avoid additional debt solely because of their erratic cash flow. Appointments get canceled, and patients take their time paying bills. In other words, it’s hard for dentists to predict how much cash they’ll have on hand in the coming months. This makes it very difficult to choose the right product and the borrowing amount. Making incorrect choices in either area could put even more pressure on your cash flow and ultimately divert your attention away from your primary concern, which is serving your patients.
Additionally, since medical technology advances rapidly, leasing equipment may be a more financially sound option than purchasing. And once you’ve accumulated a fair share of leasing bills, the last thing on your mind is taking on even more debt.
Pros
Cons:
The amount of paperwork required depends on the product you choose. Funds can be approved and distributed for most products within 1-3 business days. Here’s how to apply:
The first step is choosing the most sensible solution to the problem at hand. This should require some research, as each product is designed for different types of expenses and cash flow cycles. Are you looking to cover a short-term or long-term expense? Is demand expected to increase or decrease in the coming months?
Considering the funds’ purpose will also help us determine the correct borrowing and terms for your needs.
Here are the documents and information required for all Dental Practice Business Loans:
Driver’s license
Voided business check
Bank statements from the past three months
Invoice for equipment (for Equipment Financing)
Credit card processing statements from the past three months (for Merchant Cash Advance)
SBA loans require additional documents and information, such as financial statements. To learn what’s needed for the SBA-backed loans, visit our SBA loan page.
You can begin the application process by calling us or filling out our one-page online application. Either way, you’ll be asked to enter the information from the previous section along with your desired funding amount.
Once you apply, a representative will contact you to explain the repayment structure, rates, and terms of your available options. This way, you won’t have to worry about any surprises or hidden fees during repayment.
If you’re approved, we’ll contact you within 24 hours. After closing, funds for most business financing products should appear in your bank account within 24 hours to one week.
Your business loan isn’t just a way to get financing for your business. It’s also an excellent opportunity to start building (or improving) your credit.
Regardless of the type of business loan you get, make all your required payments on time and in full. If you get a business credit line or another form of revolving credit, keep your balance below the credit limit.
Consistently making your business financing payments on time and in full will positively impact your credit. And that means preferred rates and terms when you next need business financing.
If your application is declined, it’s possible that you applied for the wrong product to meet your cash flow needs. We would likely recommend a different product with a less hazardous repayment structure in this case.
Your application might also be declined if it is determined that you cannot afford to take on more debt at this time.
If your credit score is holding you back from accessing financing, consider working with a reputable credit repair service to raise your scores.
Yes, you can use a business loan to purchase an existing dental practice. However, this is only possible if you’re currently running another business with strong cash flow and profitability. You’ll also need excellent credit and (most likely) collateral to qualify for an acquisition loan to purchase an existing practice.
Business loan providers rarely approve loans for buying existing businesses if you don’t already own another business. Purchasing an established dental practice allows practitioners to focus on patient care rather than business operations. However, it’s unlikely to get funding to start a new dental practice.
Healthcare professionals who find a lender that provides startup funding may find additional benefits. Interest-only and graduated payment structures are available for startup loans.
Most dental practice loans can be approved in just a few business days. Dental equipment financing and receivable factoring may take 1-2 weeks for credit approval. SBA loans have the longest period, often taking 3-5 weeks to be approved and distributed. This is because SBA loans typically feature larger amounts (i.e., more than $350,000) and longer terms. For this reason, substantial documentation requirements are involved, including:
Personal Tax Returns
Business Tax Returns
Personal Financial Statement
Statement of Personal Credit History
Credit Card Processing Statements
Debt Schedule
Rental/Lease Documentation
Yes, six out of the eight dental practice loans are accessible for borrowers with bad credit. Your rates may be higher, and your terms may be shorter because bad credit makes you more likely to default. However, if you have strong cash flow or can provide collateral, your bad credit may have less impact on your rates and terms.
The only two products that are not accessible with bad credit are business term loans and SBA Loans. These products carry high borrowing limits, low rates, and long terms. The other six types of medical practice business loans typically have shorter terms and are easier to repay. We can also customize your terms and payment frequency to ensure that you can make payments while staying current on other bills.
Fraud Disclosure:
Please be aware that individuals have been fraudulently misrepresenting to business owners (and others) that United Capital Source, Inc. (“UCS”) can assist small businesses in receiving government grants and other forgivable business loans, when in fact those grants or loans do not exist or are not available. These individuals have ulterior motives and are engaging in the unauthorized use of the names, trademarks, domain names, and logos of UCS in an attempt to commit fraud upon unsuspecting small business owners.
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