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Best Financing Option for Dental Practice Acquisition

Posted On: February 9, 2023 author Paul Kendall

Looking for a lender that offers the best dental practice loan rates?

Acquiring a dental practice can cost a lot of money. Using your capital for the acquisition might put your future operations at risk because it will leave you empty handed.

That’s why it’s best for you to get a loan. It can help you acquire a dental practice without the risk of having financial problems in the future.

However, you still need to be careful in getting loans. You might end up having a lot of debt if you get a loan from the wrong lender.

Usually, the right lender offers the best dental practice loan rates. But dental practice loan rates aren’t the only factor to look for in choosing the right financial partner.

In this blog post, we’ll help you find the best lender, with the best dental practice loan rates and loan contracts. We’ll talk about the best financing option for your dental practice acquisition.

So where can you get the best dental practice loan rates? Let’s find out.

Selecting the Best Financing Option for Dental Practice Acquisition


Finding the best lender for a loan is not that hard. As long as you know how loans for dental practice acquisitions work, you can easily determine which lender is the best for you.

We’ll give you an idea where you can get a loan for your dental practice acquisition and which lender gives the best dental practice loan rates.

But before that, let’s first know why you need to get financing for your dental practice acquisition.

Why Get Financing for Dental Practice Acquisition?


A loan can be used for different purposes. You can use it to maintain business operations, acquire equipment, start a new practice, or purchase an existing practice.

Apart from that, getting a business loan also builds and/or improves your business credit.

If you make your payments for it on time, that’s good for your business credit history. (That’s just one of the reasons you want to find a lender with good dental practice loan rates.)

Also, getting a loan can protect your business’s cash flow. This preserves your available capital so you can use it elsewhere like acquiring additional equipment, hiring extra employees, or using it for emergency expenses.


Best Financing Option for Dental Practice Acquisition - dental practice

Getting a Dental Practice Loan


 There are different ways to finance a dental practice. You can choose from a number of lenders and investors.

Usually, you can get a dental practice loan from a local bank. However, you should consider getting it from other private lenders and other banks.

This is because the future of your business may depend on the financing option that you choose.

You could end up having a large amount of debt if you get a loan from the wrong institution or dental practice lender. One with poor dental practice loan rates can ruin your financials.

For example. We had a client go to a private equipment lender and get high interest rate debt before he came to us where we could've financed the whole project at a lower rate and a longer term with no pre payment penalty. 

In this scenario. The customers financials looked worst because he took on more debt. 

With that said, be sure to choose the right method of financing. Doing this ensures you that you won't have problems with money and can get great dental practice loan rates.

To help you with that, the ideal financial partner for a dental practice loan should have the following:

  • Attractive dental practice loan rates.
  • Fast approval.
  • Fast release of funds.
  • Easy qualification and paperwork requirements.
  • Tolerance for bad credit scores or a willingness not to raise dental practice loan rates too drastically in the face of a poor credit score.
  • Flexible and long terms.
  • Less money down.
  • No prepayment penalty.


Other than that, you should also check these aspects in choosing the lender for a loan. The following can assure you that your partnership with the lender will benefit you in the long run.

A Fair Loan Agreement


Having low dental practice loan rates isn't the only thing to look for a financial partner.

Your financial partner should offer a fair loan agreement too. Your contract with them must include reasonable terms for repaying the loan. Be sure to request no pre payment penalty. A no pre payment penalty where you can just pay off the loan at any time and only pay the remaining principal.

Also, the lender should allow you to have either short or long contracts.  Most contracts go up to 120 months and up to 300 months if real estate is included. 

You need to be cautious if the lender determines the length of the repayment period. Longer loans can build up a large amount of interest, even with seemingly-decent dental practice loan rates.

A shorter contract may require you to have larger periodic payments. However, this has lower dental practice loan rates (of interest), usually.

List of the Requirements


You can also get the best dental practice loan rates if you meet the lender’s requirements.

It’s best to get a loan from a lender that has low requirements. Seek funding from sources whose requirements are in your range for the best dental practice loan rates.

Traditional financing requirements include credit score requirements and specific financial ratio tests like debt-to-equity or interest coverage ratios.

But aside from that, you must prepare the following documents as well:

  • Business tax returns.
  • Financial statements.
  • Schedules of liabilities.
  • Personal tax returns.
  • Personal financial statement.



Best Financing Option for Dental Practice Acquisition - dental practice 2


Choosing the Right Financial Partner


There are a lot of institutions that offer loans. You can get it from a bank or other lenders like dental financing companies.

However, don’t expect their dental practice loan rates to be the same.

You should get the loan you need for acquiring a dental practice from a lender that offers the best dental practice loan rates. Also, make sure that they will give you support.

The financing option that you’ll get from the lender should help you achieve your objective. They shouldn't just give you a loan, they should support you in using it as well.

Having said that, you must choose the right financial partner because different ones will impose different payment rules… some of which may not be ideal for your business or finances.

They might not also give the dental practice loan rates that you expect.  

To help you pick the right lender, here are some of the best institutions where you can get the best dental practice loan rates.

Dental Practice Loan with Trust Capital


Many dentists get a loan from financing companies like Trust Capital.

Their company offers a loan called a dental practice loan. You can use it for different purposes as long as it’s related to a dental practice.

Applying for a dental practice loan is quick and easy. Trust Capital is quick at processing loan applications.

In fact, they’re known for having a short application process and same day approval. Trust Capital accepts applications of clients within a day.

In addition to that, many business owners and dentists choose Trust Capital because they have tailor-made financing solutions based on client requirements.

They offer loans like banks and have rates starting at 5%.

SBA Express Loan from Trust Capital


Trust Capital also offers an SBA Express loan. They can provide an SBA Express loan regardless of how you’re going to use it.

Loans worth $350,000 or less are approved in a day or two. While loans up to $5 million are also approved within 4-6 business days.

Trust Capital can finance start-ups and take over practices with rates starting at Prime plus 2.75% with payment terms up to 120 months.

It can be up to 25 years if real estate is financed as well. Deals can go up to $30,000,000.

To get approval, make sure to present the following:

  • Credit Application.
  • Personal Financial Statement.
  • If you operate under a corporation, then a Beneficial Owners Statement.
  • 2016, 2017 tax returns, personal.
  • 2016, 2017 tax returns, from practice.
  • 2018 P&L from practice – or tax returns if done.
  • 2018 Paystub.
  • CV/Resume/Short email detailing education and work history.


Getting an SBA loan from Trust Capital allows you to have the borrowed money instantly. This is helpful if you need additional funds immediately.

Trust Capital will provide you with a free in-depth quote to give you an accurate estimate for their loans.

Final Thoughts on Dental Practice Acquisition and Dental Practice Loan Rates


In this blog post, we talked about the best financing option for dental practice acquisition.

You must consider getting a loan for acquiring a dental practice. Doing this prevents you from using up all your available capital.

Saving your capital allows you to use it on other aspects of your dental practice. You can use to acquire equipment or hire additional employees.

Getting a loan with good dental practice loan rates will benefit you in the long run. Aside from giving you healthy cash flow, getting a loan can improve your credit as long as you pay it on time.

But to ensure that you’ll get the best from your loan, you need to get it from the right lender.

Making a partnership with the right lender also gives you the best dental practice loan rates.

Usually, the right lender won’t just give you the money you need. They will also ensure that you’ll benefit from the loan that you’ll get from them.

That’s in addition to them offering you great dental practice loan rates.

Pick a lender like Trust Capital. They give the best financing solutions to every business so expect to get the best dental practice loan rates from them.

To know how to get the best dental practice loan rates you can qualify for, you can reach Trust Capital at (866) 458-4777.

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