Best Business Loans for Dental Practice Financing
You have many options to secure funds for your dental practice. Each has its own unique purpose for your business needs.
Traditional Bank Loans
If you want to secure funding for your needs, go for a traditional bank loan. It is still the leading source of business loans. Some larger banks have loan programs specifically for medical professionals. Since dentists have high success rates, banks offer more favorable loan rates.
If you want financing that offers the most favorable rates and terms, consider a small business administration (SBA) loan. The SBA makes loans for dentists as well as doctors. The terms are generous, and borrowers can get easy approval compared to a direct lender.
Alternatively, non-bank online lenders can provide short-term business loans to your existing business. Some of these online lenders require a personal guarantee or a lien from business owners.
If you are waiting for customer payments from insurance providers and are struggling with your cash flow, a business line of credit may be the perfect solution. It is readily available cash that you may draw on through lenders or banks.
If you require a source of funding immediately, go for companies that can provide you a merchant cash advance (MCA). You can receive these loans on the same day of the application or the next day. It relies on credit card sales. So, if you have a large volume of credit or debit card transactions, MCA may be right for you. When using an MCA, you have to repay the amount by giving a percentage of your future credit card sales.
Equipment financing is an option that can provide you up to $2 million in funding. Having a good credit score can help you qualify for no origination fee and lower interest rates. You can use your loans for dental equipment financing, which includes the leases.
Dental Practice Financing: Plan Ahead
When you run a dental office, you always need extra cash. Invoice factoring may be an option in some cases, while loans may be a preferred choice in other situations.
Careful planning helps you ensure that you get the funding you need at the best possible rate and term. If you want to learn more about dental practice financing, contact us today.