If you’re starting, acquiring or expanding a dental practice, you’ll typically need business financing to make that happen. And choosing the right lender is critical to your business’s success. That’s why it makes sense to pick a lender that has direct experience with practice loans and understands the unique needs of a dental practice.
With four loan types for dental practices and a large network of lenders to compare, Lendio is a convenient stop for all your practice financing needs. It offers loans up to $5 million, so whether you need to refinance your debt at a lower rate, purchase state-of-the-art dental equipment or obtain a line of credit, Lendio likely has a solution. And it offers fast funding on some loan types, with access to capital as soon as 24 hours after loan approval.
Loan amount
$1,000 – $10,000,000
APR
Varies by lender
Min. Credit Score
500
With four loan types for dental practices and a large network of lenders to compare, Lendio is a convenient stop for all your practice financing needs. It offers loans up to $5 million, so whether you need to refinance your debt at a lower rate, purchase state-of-the-art dental equipment or obtain a line of credit, Lendio likely has a solution. And it offers fast funding on some loan types, with access to capital as soon as 24 hours after loan approval.
Pros
Loans up to $5 million
Fast funding possible
Accepts fair credit
Network of lenders
Cons
Some loan types may have high APRs
May require extensive documentation
Some lenders may charge origination fees
Loan amount
$1,000 – $10,000,000
APR
Varies by lender
Min. Credit Score
500
Loan term
3 months to 25 years
Requirements
Operate business in US or Canada for 6 months or more, have a business bank account, minimum 520 personal credit score, at least $8,000 in monthly revenue.
BHG Financial advertises a simple and fast application process for dental practice loans, with minimal paperwork required. You could be notified of loan approval within 24 hours, with funding in as little as three days. It also offers personal loans up to $200,000 for dental professionals.
However, it caps dental practice business loans at $500,000, and most loans are approved at $250,000 or less, which is smaller than many other practice loans. Plus, it charges origination fees, and its rates are a bit higher than some of its competitors, starting at 11.32%.
Loan amount
$20,000 – $500,000
APR
Starting at 11.32%
Min. Credit Score
660
BHG Financial advertises a simple and fast application process for dental practice loans, with minimal paperwork required. You could be notified of loan approval within 24 hours, with funding in as little as three days. It also offers personal loans up to $200,000 for dental professionals.
However, it caps dental practice business loans at $500,000, and most loans are approved at $250,000 or less, which is smaller than many other practice loans. Plus, it charges origination fees, and its rates are a bit higher than some of its competitors, starting at 11.32%.
Pros
Easy application process
Fast funding possible
Personal loans up to $200,000
Cons
Charges origination fees
Minimum APR is 11.32%
Smaller loan amounts than some competitors
Loan amount
$20,000 – $500,000
APR
Starting at 11.32%
Min. Credit Score
660
Loan term
3 to 12 years
Requirements
660+ credit score, no bankruptcies in the past year, licensed professional
Many dental practice loans top out at $5 million or $10 million, but practice loans from TD Bank can go as high as $12 million. It offers equipment financing, startup loans, real estate and construction financing and working capital loans. But it doesn't disclose rates and loan terms, and you can't apply online — you'll need to call or visit a bank branch.
Loan amount
$10,000 – $12,000,000
Many dental practice loans top out at $5 million or $10 million, but practice loans from TD Bank can go as high as $12 million. It offers equipment financing, startup loans, real estate and construction financing and working capital loans. But it doesn't disclose rates and loan terms, and you can't apply online — you'll need to call or visit a bank branch.
Pros
Loans up to $12 million
Multiple loan options
Offers SBA loans
Cons
Doesn't disclose rates and fees
Doesn't state loan terms
No online application
Loan amount
$10,000 – $12,000,000
Loan term
36 to 60 months
Requirements
Have assets to use as collateral, realistic business plan, talk with a loan officer in person
A specialist in practice loans — and only practice loans — 1st Med Financial is the place to go for conventional dental practice loans as well as SBA 7(a) and 504 loan options. Whether you need to buy, build, equip or expand your dental practice, 1st Med Financial offers direct industry knowledge and dedicated loan advisors to help you every step of the way.
With loans up to $10 million, terms as long as 25 years and interest rates starting at 3.99%, 1st Med Financial is a strong competitor in the industry. But it states that conventional practice loans typically close in 15 to 30 days, which is a little longer than some lenders.
Loan amount
Up to $10,000,000
APR
As low as 3.99%
A specialist in practice loans — and only practice loans — 1st Med Financial is the place to go for conventional dental practice loans as well as SBA 7(a) and 504 loan options. Whether you need to buy, build, equip or expand your dental practice, 1st Med Financial offers direct industry knowledge and dedicated loan advisors to help you every step of the way.
With loans up to $10 million, terms as long as 25 years and interest rates starting at 3.99%, 1st Med Financial is a strong competitor in the industry. But it states that conventional practice loans typically close in 15 to 30 days, which is a little longer than some lenders.
Pros
Loans up to $10 million
Rates as low as 3.99%
Specializes in practice loans
Cons
Funding could take 2 weeks or more
Unclear about additional fees
Loan amount
Up to $10,000,000
APR
As low as 3.99%
Loan term
Up to 25 years
Loan amount
Up to $10,000,000
APR
As low as 3.99%
Best for SBA loans
Bank of America business loans
3.6
★★★★★
Finder score
Bank of America dental practice loans range from $10,000 to $5 million, and the bank is endorsed by dozens of dental associations across the country. It's also an SBA preferred partner lender, meaning it's authorized to approve SBA loan requests in-house — without requiring SBA approval. This partnership helps to streamline the loan process, potentially saving borrowers weeks of waiting for funding.
Bank of America provides loans to start, expand or acquire a dental practice, including real estate loans, equipment financing and debt consolidation loans. It also offers veteran discounts and other options to save on loan costs. But answers to some of its basic FAQs are rather vague.
Loan amount
$10,000 – $100,000
APR
Starting at 8.50%
Min. Credit Score
700
Bank of America dental practice loans range from $10,000 to $5 million, and the bank is endorsed by dozens of dental associations across the country. It's also an SBA preferred partner lender, meaning it's authorized to approve SBA loan requests in-house — without requiring SBA approval. This partnership helps to streamline the loan process, potentially saving borrowers weeks of waiting for funding.
Bank of America provides loans to start, expand or acquire a dental practice, including real estate loans, equipment financing and debt consolidation loans. It also offers veteran discounts and other options to save on loan costs. But answers to some of its basic FAQs are rather vague.
Pros
An SBA preferred partner lender
Competitive rates
Flexible payment plans
Cons
Charges loan administration or origination fees
Must have two years in business
FAQs don't answer a lot of questions directly
Loan amount
$10,000 – $100,000
APR
Starting at 8.50%
Min. Credit Score
700
Loan term
12 to 60 months
Requirements
Good credit, 2+ years in business, $100,000+ revenue
Live Oak Bank is a lender with extensive experience in the dental industry and has financed more than $1.5 billion in dental practice loans. Live Oak specializes in construction loans if you plan to build from the ground up or real estate financing if you've found the perfect space for your dental practice.
But its website isn't clear about the range of loan amounts or any additional fees charged. And, while it advertises competitive rates, it doesn't actually disclose what those rates are. It appears you'll need to talk to a representative to find out fairly basic loan details.
Loan amount
Up to $15 million
APR
Varies
Live Oak Bank is a lender with extensive experience in the dental industry and has financed more than $1.5 billion in dental practice loans. Live Oak specializes in construction loans if you plan to build from the ground up or real estate financing if you've found the perfect space for your dental practice.
But its website isn't clear about the range of loan amounts or any additional fees charged. And, while it advertises competitive rates, it doesn't actually disclose what those rates are. It appears you'll need to talk to a representative to find out fairly basic loan details.
Pros
Experienced with dental practice loans
Offers construction loans and real estate financing
Has an express loan option with faster funding
Cons
Dental practice loan amounts unclear
Doesn't disclose interest rates or fees
May need excellent credit to qualify
Loan amount
Up to $15 million
APR
Varies
Loan term
Up to 25 years
Requirements
Not stated, but most SBA loans require a minimum credit score in the mid-600s, a down payment of 10% to 30% and possibly collateral
Finder’s business loan experts analyzed dozens of lenders offering multiple loan types available for dental practices. We ultimately chose lenders that offer loans specifically for dental practices and have expertise in the needs of these types of businesses.
Some of the criteria we evaluate include:
Interest rates
Additional fees, like origination fees
Loan amounts
Loan terms
Repayment plans
Turnaround times
Credit score requirements
Time in business requirements
Revenue requirements
Reputation of the lender
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How to compare dental practice loans
Analyzing your loan options is a smart way to benefit your business and save you money in the long run. Here are some key loan features you’ll want to compare.
Interest rates. Interest rates for dental practice loans can vary widely depending on the type of loan and the lender. Be sure to check with multiple lenders to find the best rates, and keep in mind that longer loans usually have lower rates and vice versa.
Loan fees. Some business loans come with origination, service and other fees that add to the loan’s cost. Avoiding unnecessary fees can help you save hundreds or even thousands of dollars over the life of the loan.
Loan amounts. Most lenders state their minimum and maximum loan amounts. Be sure to only look at lenders that offer loans in your desired range.
Loan terms. Some loans have short terms that last only a year or two. Larger loans often last up to 10 years or more. Having a firm grasp of your budget and loan needs can help you decide the loan term that makes the most sense for your dental practice.
Loan processing time. Some loans can be funded quicker than others. For example, SBA loans or real estate loans could take weeks or months, whereas invoice financing or other short-term loans can turn around within days.
Reputation of the lender. Learning about lenders through online reviews or word of mouth can help you get a sense of how different lenders operate and how they treat their customers.
What is a dental practice loan?
Dental practice loans are similar to other types of business loans, but they’re offered by lenders with experience in the dental industry, so they understand the needs of dental professionals. Loan types include construction and real estate loans, equipment financing, business lines of credit and working capital loans, to name a few.
Dental practice loans are commonly used to rent offices, purchase real estate, buy dental equipment and medical and office supplies, cover cash flow shortages and pay for other practice expenses. Loan types include both short- and long-term solutions.
How do dental practice loans work?
Dental practice loans work just like other business loans, which vary depending on the loan type you choose. Certain loans, such as a term loan or an equipment loan, are disbursed in one lump sum, and you’ll pay it back, with interest, in equal monthly installments for years.
By contrast, a short-term loan, like a business line of credit, can be drawn on whenever you need. You’ll only pay interest on the amount you use, and you may only be required to make interest payments during the draw period. Other dental practice loans may have different loan terms and repayment plans.
You may want to talk to a dental practice loan specialist who can explain exactly how the loan types work and help you decide which option makes the most sense for your practice.
Pros and cons of dental practice loans
Consider the advantages and disadvantages of dental practice loans.
Pros
Large loan amounts available
Multiple loan types
Short- and long-term loan options
Cons
Some loan options have high APRs
Some lenders require at least two years in business
May need good-to-excellent credit for some loans
Compare other types business loans
To leave no stone unturned, consider these other business lenders to see if they can meet your loan expectations and budget.
Retail businesses or others that have a lot of credit card sales
How to qualify for a dental practice loan
Dental practice loan requirements may vary by lender, but here are the basic criteria needed to qualify:
Credit score. Most lenders that offer dental practice loans check your score to determine if you’re a good credit risk. A score of 700 or more can improve your approval odds and get you better rates, but some lenders accept lower scores.
Age of your business. In general, lenders prefer businesses that have been operating for at least six months, but others may require one to two years in business to qualify.
Revenue requirements. Most business lenders have minimum revenue requirements you’ll need to meet. In general, your dental practice likely needs to bring in at least $100,000 or more per year to qualify for most loans.
Other financials. Depending on the lender, you may also need to demonstrate profitability and cash flow and disclose your existing debts.
Business plan or loan proposal. Lenders may want to see your proposal for using the loan proceeds and possibly your overall business plan.
How to apply for a dental practice loan
The process to get a dental practice loan varies depending on the lender and the type of loan. But the basic steps to secure this type of financing are similar:
Define your loan purpose. Decide how you plan to use the loan proceeds and how much you’ll need to accomplish that goal.
Assess your budget. Go over your finances to determine how much you can afford to repay. This amount can help you determine if a short-term or long-term loan makes more sense for your practice.
Check your credit. Checking your credit score before applying for a dental practice loan is a good way to ensure everything is accurate and up to date. It can also help guide you toward lenders that accept borrowers in your credit range.
Compare lenders and loan types. Compare loan types to see which option makes the most sense for your purpose and which lenders offer those loans. Once you’ve figured out the best loan for you, be sure to compare rates, fees and loan terms from multiple lenders.
Research requirements. Also check out the lender requirements needed to qualify. For example, if you’ve only been in business for a year or two, make sure the lenders you’re looking at consider newer practices.
Gather your documents. Depending on the loan type, the required documentation could be minimal. But other loan types may require more extensive paperwork, so you’ll want to be prepared.
Apply. Once you’re ready, choose a lender and apply for the loan, submitting any required documents.
Depending on the lender and the loan type, the approval process could take some time. And, it’s possible a decision could be delayed if your application isn’t complete or the lender needs additional documentation.
Alternatives to dental practice business loans
You may also want to consider some alternatives to dental practice loans as part of your research.
Business grants. Non-profit dental practices or those that operate in underserved areas may qualify for a business grant, although they can be competitive.
Investors. Because dental practices tend to be profitable, you may be able to attract investors. But you may have to share a percentage of your business or profits.
Personal loans. Many business owners turn to personal loans to help fund their dental practices. Requirements are usually less strict than business practice loans, but you’ll need good credit to qualify for the most competitive rates.
Home equity financing. If you’re a homeowner, you may want to consider leveraging your home’s equity with a home equity loan or home equity line of credit (HELOC) to fund your dental practice.
Credit cards. For smaller funding needs, you could apply for a card with a 0% introductory rate and qualify for a year or more of no-interest financing.
Frequently asked questions
What is the best dental business loan?
There is no “best” dental practice loan. It all depends on the goal you’re trying to accomplish. For example, if you’re just getting your practice off the ground, a startup loan might make sense. But if you need to replace expensive dental equipment, an equipment loan may be the best option.
How long does it take to get funding for dental practice loans?
How long it takes to get funded depends on the lender and the loan type. Online lenders, for example, can often approve and fund your loan within a few days. But if you’re applying for a real estate loan or an SBA loan, it could take weeks or even months to go through.
Is a dental practice loan tax deductible?
You may be able to deduct your business loan interest payments on your taxes. However, there are certain restrictions and limitations, and not all loans are eligible. It’s best to talk to a tax professional who can guide you through the complex world of business tax deductions.
Lacey Stark is a freelance personal finance writer for Finder, specializing
in banking, loans, investing, estate planning, and more. She has 20
years of experience writing and editing for magazines, newspapers, and
online publications. A word nerd from childhood, Lacey officially got her
start reporting on live sporting events and moved on to cover topics
such as construction, technology, and travel before finding her niche in
personal finance. Originally from New England, she received her
bachelor’s degree from the University of Denver and completed a
postgraduate journalism program at Metropolitan State University also
in Denver. She currently lives in Chicagoland with her dog Chunk and
likes to read and play golf. See full bio
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