The Best Loans for Financing Your Private Dental, Medical, or Veterinary Practice

The Best Loans for Financing Your Private Dental, Medical, or Veterinary Practice

Author: LenDRgroup Consulting Published on: Published in: Practice Financing

As a dentist, medical physician, or veterinarian, you are likely aware of your skillset. For years,
you went to school and grew your knowledge and abilities as it relates to helping your patients
achieve positive health and wellness outcomes. As financial consultants who specialize in
helping professionals like yourself, we have done the exact same thing, just in a different
discipline—and seek to assist you as you achieve positive financial outcomes for your practice.

At LenDRgroup Consulting, we work specifically with private dental, medical, and veterinary
practices and are passionate about helping you understand what the best loans are for your
individual business. In this blog, we will outline some key loans you will want to know about.

What Can Loans Be Used to Fund?

Depending on your needs and goals, practice loans can be used for a variety of things,
including:

  • Working capital
  • Office furniture and fixtures
  • Debt refinancing
  • Real estate/building purchase, construction, and renovation
  • Practice acquisition expenses
  • Medical machinery and equipment

Ultimately, different loan products can address each of these unique needs.

What Are the Types of Loans for Practices?

There are a few options available to professionals like yourself, including:

SBA Loans: An SBA loan is a traditional term loan offered by the U.S. Small Business
Administration. They are considered the best-of-the-best when it comes to small
business loans as they have great terms and offer wide flexibility. Here are some fast
facts:

    • Loan Amounts: $5K to $5M
    • Repayment Terms: Five to 25 years
    • Interest Rates: Start at 7.75%
    • Time for Approval: Three weeks to several months (this point is usually
      considered a downside as is the extensiveness of the application)

Bank Loans: Healthcare practices tend to fare better than other small businesses with
bank financing, and several large banks, like Wells Fargo and Bank of America, have
dedicated professionals and resources to meet the needs of practices—however, your
credit score will be highly scrutinized. Here are some quick facts:

    • Loan Amounts: $30K to $5M
    • Repayment Terms: Up to 25 years
    • Interest Rates: Start at 7%
    • Time for Approval: Two to six weeks

Short-Term & Medium-Term Loans: If you need a fast loan with as little paperwork as
possible, a short-term or medium-term loan from an online lender might be right for
you. However, these loans tend to be more expensive and have shorter repayment
periods. At the same time, you could get the cash you need in as little as one business
day. If you are having cash flow challenges, this could be an answer. Some facts include:

    • Loan Amounts: $2.5K to $250K
    • Repayment Terms: Three months to five years
    • Interest Rates: Start at 10%
    • Time for Approval: As fast as one business day

Business Lines of Credit: When you need working capital, a line of credit could provide a

solution. Like a traditional credit card, a line of credit gives you access to funds set at a
max amount. You pay interest only on what you withdraw/use. When you pay off a
balance, those funds are available again. Here are some facts:

    • Loan Amounts: $10K to $1M
    • Repayment Terms: Six months to five years
    • Interest Rates: 7% to 25%
    • Time for Approval: As fast as one business day

Equipment Loans: No matter if you are a startup or in expansion mode, equipment is

a critical part of running a practice—and represents some significant costs. Therefore,
financing equipment through a loan is a great option, especially if one has bad personal
credit. Equipment loans can also be combined with other forms of financing. And here
are the facts:

    • Loan Amounts: Depends on the equipment cost and lender
    • Repayment Terms: Six months to 25 years
    • Interest Rates: Start at 6%
    • Time for Approval: As fast as one business day

How To Choose the Best Loan for Your Practice

Of course, now you are likely wondering which loan or loans is best for you. Ultimately, many
financing strategies can be created depending on your individual needs, goals, and
objectives—and that is where LenDRgroup Consulting can help. Because we only work with
dentists, medical physicians, and veterinarians, we understand your focus as well as your
challenges.

We would love the opportunity to consult with you over what the best loans are for your
practice’s needs—and are connected with many different types of lenders to address ranging
requirements. Reach out to us today and let’s talk.

You may also like