What You Need to Know

Types of loans available for dentists

1. A Business Line of Credit:  A business line of credit gives you access to flexible, revolving funds when you need them for your practice. With a line of credit, you borrow what you need, pay down the balance, and the funds are replenished so you can use the line again. Many dental practice owners will use a line of credit to bridge cash flow in between reimbursement from insurance companies. Learn more about OnDeck's Business Line of Credit. 

2. A Short-Term Business Loan: Many online lenders offer short-term business loans for small businesses like dental practices. With terms that range from three months to three years, this type of financing makes it possible for a dentist’s office to borrow capital and repay it quickly—often making the total dollar cost lower than a longer-term loan. Getting a short-term business loan from an online lender can be much quicker than getting a traditional loan from a bank – typically, the borrower can apply in minutes and get their funds within days. Many dentists will use a short-term loan to make improvements to their office, add another line of service, or purchase new technology or equipment to better serve their patients. Learn more about OnDeck's Short Term Business Loan.

3. Equipment Financing: Equipment financing is another way to finance the purchase of business equipment, besides just using a loan or line of credit. Any tangible asset used in business operations can be considered business equipment. For dental practice owners, this can include dental patient chairs, x-ray imaging equipment, dental operatory lights or chairside CAD/CAM systems.

4.  A Bank Loan: As a business owner, the financing option you’re likely most familiar with is a traditional bank loan. A bank loan typically requires collateral to secure the loan, and the application process tends to take several weeks. The length of the loan can be anywhere from 2-20 years. While the interest rates on a bank loan can be attractive, dentists may find the application and funding process too slow for their cash flow needs.

5. The SBA (Small Business Administration) Loan Guarantee Program: Although the SBA is not a lender and provides financing through participating banks and credit unions (among others), the SBA Loan Guarantee Program will sometimes qualify a borrower who might not otherwise meet the more rigid criteria required by the bank. If your dental practice is an established business, with a few years under its belt, and your personal credit score is above 680, this could be an option for your practice. 

Resources for Dental Practice Small Businesses

What type of loan makes sense for your business?

Financing options to help you grow your business

If you’ve ever heard the adage, “It takes money to make money,” you must be a small business owner. Fortunately, there are more small business loan options available today than ever before—you just need to know where to look and what to look for. You don’t need to be a financing expert to build a successful business, but you do need to consider all the business loan options available to determine which one is best to meet your business need.