Becoming a dental practice owner requires making goals, extensive planning, and, of course, money. The financial end can be overwhelming. However, it doesn’t have to be and it shouldn’t deter you from achieving your dreams.
At LenDRgroup Consulting, we have a platform of over 300 dental- and healthcare-specific lenders to help make your dream of practice ownership a reality. But first, let’s break down the process of dental practice financing by answering a few common questions.
How much does it cost to start a dental practice?
How much does it cost to run a dental office?
How do you finance a dental practice?
What types of funding are available to dental practice owners?
Where can dental practice owners get loans?
Read on for more information on how to finance your dental practice.
Dental Practice Costs
Being a dentist and treating patients is only half of what you do. As the practice owner, you need to understand the financial or business aspects as well.
How Much Does It Cost to Open a Dental Practice?
Opening a dental practice requires substantial money upfront, before you are even open, seeing patients, or turning a profit. To start your own dental practice, you need to understand, plan for, and know how you are going to pay for these costs.
According to DentistryIQ, the average new practice costs approximately $500,000. This includes costs to structurally prepare the building, equipment, and supplies.
How Much Does It Cost to Run a Dental Office?
Construction to outfit your building or office suite takes a large portion of your new practice budget. This includes preparing the rooms, renovating, or doing repairs. Then, you need to consider dental equipment, chairs, and technology for each room.
When planning for your future practice, you must also consider funding to help you cover salaries, insurance benefits, utilities,and overhead until you are turning a profit. Don’t forget hidden or overlooked costs such as suitable parking or general office supplies for day-to-day functioning.
Financing for Dental Practice Owners
Starting, running, and maintaining a dental practice requires funding. Many new dental owners still have student debt from dental school. They do not have the necessary cash to pay for a new practice out-of-pocket.
How Do You Finance a Dental Practice?
Before you can reach out to lenders for financing, you need to research and plan out your future business. You need to create a business plan detailing specifics about your business. Your business plan may include location, equipment, services offered, projected earnings, competition, and marketing plans.
Your business plan shows that opening a dental practice isn’t just a whim. You are serious about becoming a practice owner. Your business or finance consultant may be able to assist you in drafting your business plan.
After planning out your future business, review your financing options. Work with a financial consultant who is familiar with the ins and outs of dentistry. This ensures you will be matched with a lender precisely suited to your unique needs, cash flow, and monthly payments.
Where Can Dental Practice Owners Get Loans?
Dentists who want to become owners need to maintain their finances and credit history. Individuals should maintain a couple revolving credit accounts such as lines of credit or credit cards to demonstrate good credit practices.
Make all monthly payments including mortgages and student loans on time. Protect your identity and review credit reports annually to ensure accurate reporting.
By maintaining a strong credit profile, you will be an attractive candidate for potential lenders.
What Types of Funding Are Available for Dental Practices?
Numerous funding options are available to dentists including small business loans and traditional bank loans. There is no one-size-fits-all loan. Every practice is different.
At LenDRgroup Consulting, our specialized, turn-key services include pairing you with the appropriate lender. We do the work so you can focus on what you do best, treating your patients. We will complete the application, communicate with lenders, and negotiate the loan terms.
Our goal is to simplify the financing process and to help you achieve your dream.
Dental Practice Financing with LenDRgroup Consulting
If you are ready to start a dental practice, consult the experts at LenDRgroup Consulting. We can review the startup costs, assist you with your business plan, and help you find financing.
Experienced, Certified Dental Practice Consultants
LenDRgroup Consulting is a team of experienced dental practice consultants. We can help you navigate the finance and management aspects of running your private practice.
We care about your long-term success. Let LenDRgroup Consulting help with your dental practice financing or business consulting needs. We customize our services based on the needs of your practice and your career.
We built a network of 300+ dental and healthcare-specific lenders to help dental professionals achieve practice ownership without the typical obstacles. To date, we have helped hundreds of dental professionals just like you start and grow their practices. We understand your practice’s needs and can help you avoid costly mistakes.