We wanted to lend a hand and explain in plain English what the options are for dentists who are looking for funding, as well as offer our recommendation.
If you want money quickly and you know you can pay it back quickly, you could consider a merchant cash advance.
An MCA is different to any other funding because its based on income rather than credit, this would benefit a dentist that has lots of customers paying by credit card.
Be warned! An MCA needs to be repaid within a month or two and is not a long-term financial solution.
Backed by the government, small business loans are good for dentists looking to reduce their monthly payment for a larger loan.
On average, their interest rates are around the 10% mark with repayment terms lasting up to 20 years.
Invoices are considered the collateral on a loan and unpaid invoices are considered assets. So, a dental practice offering payment plans should have enough invoices to borrow against.
Again, these are short-term fixes and shouldn't be considered when looking to buy new equipment or refurb your practice.
Dentists are considered professionals so can obtain these loans without a huge amount of effort. Professional loans can be secured or unsecured, have interest rates below 10%, and can be repaid over several months.
"you can also add extras to your equipment finance packages such as installation or maintenance"
Whether you're looking for long-term or short-term solutions to funding your new dental gear, equipment finance is your best option.
Not only do you get great rates over a period of time that suits your dental practice but you can also add extras to your equipment finance packages such as installation, maintenance and any future upgrade to your dental equipment, should they become available.
The length of time a dental practice has been in operation as well as having strong monthly revenue are both factors that can determine the creditworthiness of your surgery.
As we said earlier, dentistry is looked at as a professional industry that offers a service to the public, this means lenders see them in a more favourable light.
If you're interested in applying for finance, click below to find out how much you can borrow.
If you've still got a few unanswered questions about the types of funding available for dental practices, business loans or equipment finance then you can check out our FAQ page or contact us and we'd be happy to chat.
