If you are a dentist looking to start your own practice or fund your existing one, there’s good news! Lenders generally do not have much of an issue with lending to dentists, physicians, veterinarians, and others in the medical field. However, there are a few things to keep in mind about dental practice financing, especially if you are trying to fund your dental practice.
1. Have A Plan of Action
Plan out the best-case scenario, as well as the worst. It may be difficult to ask what will happen if you abruptly leave your practice or are forced to shut it down. Asking these questions now is far better than asking them later.
2. Knowing Exactly How Much You Need
Do the math and figure this out before making a trip to the bank. Know how much money you are asking for. Unexpected costs undoubtedly will arise. Make sure you borrow enough so that you do not run out of money. Banks become suspicious if you come back again after only a short period of time. Save yourself the trouble and simply calculate how much you will need to finance your dental practice.
3. Don’t Borrow To Cover Operating Costs
If you have an established clinic or dental practice and you want to borrow money to cover things like payroll, it’s unlikely that banks will offer you a loan. The banks will be wary that you won’t be able to make the repayment, and they don’t like to fund dental practices — or any other type of business — just to carry them over for another month.
4. You’re Going to Start Small
If you are opening up a brand new clinic, you may not have very many patients in the beginning. Be patient that the patients will come! If you do good work, referrals will come by word of mouth, figuratively and literally.
5. Borrow Your Equipment
In this day and age of technology, new inventions seem to spring up all the time. That’s why dental practice equipment financing is far easier if you borrow the equipment. Moreover, many companies will cover the maintenance costs and labor of their equipment, saving you time, energy, and money. Plus, you won’t have to figure out what to do with your machinery once it becomes outdated.
Running a dental practice is indeed a CEO job, even if your passion is helping people with their oral health. Maintain both physical and financial health are of critical importance.