Financing a Dental Practice Transition
In nearly every dental practice transition, some type of dental practice financing will need to be acquired to complete the transition. An ADS Dental Broker will work with you to find your best financing option and ensure that the process goes smoothly.
The team at ADS offers a network of relationships with major lenders throughout the country. Our preferred lenders are established leaders in the industry, demonstrating an understanding of the unique dental practice transition process. Our preferred lenders include Bank of America Practice Solutions, Wintrust Commercial Banking – Professional Practice Group, and Columbia Bank Dental Financing Solutions.
What Can You Do With Financing?
As a dental practice owner, you may require financing if you are in one or more of the following situations:
- Purchase or start your own dental practice
Whether you're ready to own a dental practice or purchase an existing one, a dental transition broker can help you find the financing you need to realize your professional goals.
- Expand or relocate your practice
When business is good and it's time to expand your existing location or relocate, our team can help you find the funding, with both national and local lenders, to support your growth.
- Upgrade equipment, technology, or systems
Over time, hardware and software can become outdated. Keeping up with current management systems and tools to keep your patients happy is vital for growth. When you need extra funds to make the upgrade, an ADS broker can assist you in finding equipment financing to help you move forward.
- Jump-start future growth
You may wish to use your existing practice equity to remodel your office or update your marketing activities. An experienced transition specialist can work with you to help you make the wisest investments for practice.
- Build practice equity with commercial real estate
If you are a doctor seeking to finance land or building purchases, new construction or a large practice acquisitions. The specialists at ADS will work with you to help you understand these specialized financing programs.
- Consolidate business debt
Consolidating business debt is recommended by most financial advisers. Get in touch to learn more about how an ADS transition specialist can facilitate an increase in your dental practice cash flow with debt consolidation or dental practice refinancing.
SBA vs. Traditional Small Business Bank Loan
When seeking a dental practice loan, there are several loan types that are available. In working with many dentists trying to secure dental practice loans, we have found that many do not understand the difference between an SBA and a traditional small business bank loan.
With a typical bank loan, you and your assets serve as collateral. Most banks try to secure as much as they can in their investment which can include your personal assets. In some cases, it has become increasingly difficult for dental practice buyers to get unsecured loans. Many times, these types of loans come with a higher interest rate and are riskier for the borrower.
Alternatively, an SBA facilitated loan is a much less risky option. With an SBA loan, the government guarantees a certain percentage of the defaulted loan if the lender is unable to pay. The goal of most SBA loans is to increase lending to start-up businesses and ultimately boost the economy.
Get in touch with an ADS dental transition specialist to learn more about dental practice loan and financing options.