Running a successful dental practice involves significant financial and time investments. To ensure your practice grows to its full potential, you will need to not only get it off the ground but also manage your cash flow throughout your business’s life.

Your practice’s sustainability depends on its cash flow. You must be able to work at your best and make the most of every opportunity to grow your practice. These opportunities often present themselves when we least expect them. What if you don’t have the means to afford to grow?

When you are in dire need of capital, small business loans can help. You can use small business loans to fund your needs, whether you are looking to upgrade old equipment or hire new staff members or launch a marketing campaign to get new clients.

If you can secure terms that are favorable for your business and your future, financing your dental practice will be beneficial. Continue reading to find out how small-business loans can be used to help dentists expand their practice and how to maximize your financing.

How do small business loans work? And what are the benefits for dentists?

There are many types of small business loans available. However, all of them provide capital to your business. There are two types of financing: term loans and business lines of credit. Certain types of small-business loans are tailored to specific situations, such as equipment financing for asset purchase, while others have more flexible terms, such as revenue-based financing.

A bank, credit union or online lender can provide small business loans. An alternative source of financing, such as angel investors, is also available. Although each avenue has its own terms, conditions, and eligibility requirements they are all useful in specific situations.

Small business loans can be beneficial to dentists just like any other business. The funds can be used to cover operating expenses, buy equipment, hire employees and stockpile materials. But the benefits do not end there.

You probably know that dentists don’t always get paid immediately by their clients. Unpaid or late invoices can cause a clog in your accounts receivables and make it difficult to run your practice at its maximum capacity. If this continues, you may find yourself unable to grow your practice or to serve clients at the speed they are used to.

These problems can be solved by small business loans. The best way for dentists to quickly get cash for their challenges and opportunities, and then use that money to build a stronger financial organization.

What are the requirements for a small business loan?

The type of loan you are applying for, the amount that you wish to borrow, your financial strength, and the lender with whom you work will all affect the eligibility of small business loans.

Most lenders require at minimum $120,000 in annual income, a 580+ score and more than one year in businessspan type=”font-weight 400 ;”>. Non-bank lenders are more likely to have stricter requirements, particularly during uncertain economic times. Bank lenders might be more strict.

Some non-bank lenders, for example, don’t require a minimum credit score to be eligible for their programs. There is always a compromise. A lower credit score can lead to higher interest rates and reduced funding amounts. Make sure you speak to multiple lenders as part of your selection process so that you don’t miss out.

How do you apply for a small business loan as a dentist?

A small business loan can be obtained from banks, credit unions, marketplaces and alternative lenders. Every organization has its own application process. Let’s take a look at the basics.

Bank Small Business Loans

Small business loan applications are usually made to banks first. You will first contact your bank to request a small-business loan application. Fill out the application. Next, collect all required documentation. This includes bank statements, credit reports and profit and loss statements.

Next you will file your application. It can take 60-90 daysspan styling=”font weight: 400 ;”>. After you have received your approval or denial you can make decisions about the terms and conditions that best suit your business and goals.

Alternative Lender Small Business Loans

Alternative lenders are also known as non-bank and online lenders. They operate almost entirely online and offer a simpler process for clients thanks to their reliance on technology.

Search engines are the most common way that people find online lenders. Once you have found the right lender for you, you can start filling out applications just like you would with a bank. This stage will require you to submit documentation. Make sure you have all the necessary documents so that you don’t waste your time.

The underwriting phase begins. The underwriting process involves waiting for the decisions on your individual applications. Once they are made, you will choose a lender based upon the terms, funding amounts and interest rates. For smaller amounts of funding, it can take a few days, while for more substantial requests, such as $1 million, it can take up to five weeks.

Marketplace Small Business Loans

Marketplaces are a combination of alternative lenders and bank lenders. This allows entrepreneurs to submit one time and receive multiple offers span styling=”font-weight 400 ;”>. These organizations are efficient in financing businesses and offer advising services that can help you decide which offer is best for your company.

The process of applying to a marketplace is very similar to that of non-bank lenders. Find them online and fill out the application. Then, upload your business documents. Once you have submitted your application, the team will review it, locate lenders who match your goals, then return to you with offers that best suit your business.

Marketplaces are great for saving time. Marketplaces will save you the time of searching for lenders and filling out multiple applications. However, many of these organizations charge a fee for their services, which can discourage some entrepreneurs. The fee is negligible if you don’t want to wait for the funds you need to grow your business.

Tips to Grow Your Practice with Small Business Loans

Each dentist will have their own unique ways of managing their practice. However, there are some general guidelines that you can follow when you use small business loans to help grow your practice. These are some tips and tricks for entrepreneurs who want to grow their practice.

DO acquire new equipment.

Equipment purchases that are too expensive can cause cash flow problems and make it hard to run your business at its best. You can spread the payment over a longer period of time and reduce your cash flow pressure by getting equipment financing or a small business loan. Finance equipment may be eligible for tax benefits, such as section 179. This can help you to save money in tax season.

DO make investments in advertising and marketing.

It’s not always possible to find a budget spot for advertising or marketing. However, there will come a time when you need to get your name out there in order to attract new clients. You can use small business loans to get the buying power you need to market your ideas effectively and to win back business from the rest of the pack.

You have the option to work with a marketing agency, or you can do it yourself The choice is yours!

Keep a detailed record about how you spend your money

It is easy to get carried away when you have loan funds. However, it is important to use them in a strategic and calculated way to benefit your business. Keep track of the remaining funds and write down all purchases you make as you invest in your company. You’ll be able to track your balance and know how much you have spent.

Do not agree to terms that aren’t appropriate for your business.

There is always a better deal. Restrictive capital is worse than no capital.

You shouldn’t expect to get more money than you can manage for your business. If your annual revenue is $100,000, you shouldn’t expect a lender offer you $1,000,000+. You simply aren’t eligible for that amount.

Do not “throw money at problems.”

The best way to prevent a problem from returning is to identify the root cause. If your company has significant inventory expenses each month, it is better to increase your purchasing power, lock in a better relationship, than to borrow capital to pay that monthly expense. While it might seem more costly in the short-term, the long-term savings could be significant. So, be open to considering financing options.

Do not limit yourself to one lender.

Non-bank lenders are also available. While bank lending is great, so is non-bank lending. Each lender will view your business differently and offer different terms depending on the same information. A bank could deny you, but a non-bank lender might offer favorable terms due to their differing qualifications.

There are many lenders available, and you don’t have to choose one. You can explore all of them to find out what type your business is eligible for.

Make Your Search for Small Business Loans Easier With National Business Capital

National Business Capital is an efficient time-saver for business owners. You can submit one application and receive multiple offers. Our Business Finance Advisors will help you choose the best one for you. We learn everything about you and your business to make sure we are able to offer terms that meet your needs and allow you to grow freely.

Through 25,000 transactions, we have secured more than $2 billion and have a great reputation with our clients. Because we are familiar with almost all industries, you can be sure that we will “get” your needs.

Your growth doesn’t need to be delayed. Access to capital is available at your fingertips and you can achieve success no matter what time it is.

To get started, complete our digital application

FAQs

How do I market my dental business?

Marketing is about being able to put yourself in the shoes and mind of potential clients, and finding ways to grab their attention before your competitors.

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  Compare competitors
  
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  Be realistic with your budget
  
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  Conduct SEO research
  
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  Create a search-friendly site
  
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  Ask your current customers how they found you
  
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  Advertise in Local and National Publications
  
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  Use to publish press releases about noteworthy achievements
  
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  Imagine yourself in the shoes your patients – where are they looking for new businesses?
  

What is the most important asset in a dental clinic?

It’s as easy as your equipment and your team.

Your practice is what you make it. But a great dental practice has the equipment it needs to keep up with its workload. Without equipment, you won’t make it big. You also won’t attract or retain customers if your staff isn’t qualified. This is a delicate balance that you will need to maintain if you want growth.

Dentists can get SBA loans

Yes! Yes!