How to qualify for a Dental Practice LoanPublished on 29th May 2018 - Last update on 8th January 2019
Maintaining our oral health is an important aspect of everyday life, meaning there’s no shortage of opportunities to be had whilst operating in this sector. As such, choosing to establish or buy a dental practice could prove to be a very profitable venture, providing you know how to go about it. In order to achieve this goal, you’re going to need the funds to back it up. Fortunately, with the growing prominence of the Alternative Finance Industry, you’ve now got plenty of funding opportunities to choose from, including Dental Practice Finance. Yet, in order to find the most appropriate solution, you need to know which factors to incorporate into your decision.
What Dental Practice Loans can I apply for?
If you’re thinking about establishing or buying an existing dental practice, there are many finance solutions available to help you achieve your goal. These include Secured and Unsecured Business Loans, Commercial Mortgages and Bridging Loans. However, you need to appreciate that each of these products works in different ways. As such, seeking the expertise of a qualified business finance professional who understands your sector could prove invaluable in helping you source an appropriate agreement.
How do I create a positive image?
Lenders often look favourably upon the dental industry, considering it to be very profitable. As such, any investments in this sector are often perceived as being low risk, with dentists often settling their agreements on time. Nevertheless, lenders will always exercise due diligence when considering any request. As such, when applying for a Dental Practice Loan, you still need to ensure that you portray yourself as positively as possible. That said, lenders typically look at factors such as your credit history, monthly income and whether you’re able to provide collateral, depending on your chosen finance product.
Will Lenders look at my credit history?
When dealing with any request for finance, lenders usually request permission to review both your personal and business credit profile. Although adverse credit may not always be used against you, it enables lenders to form a more in-depth understanding of your financial situation and the risks that may be involved. To achieve this, they’ll incorporate into their checks whether you have recent or past CCJs, arrears, Accelerated Payment Notices, unresolved debts (e.g. credit card debt) and a history of settling debt on time. However, although possessing adverse credit may not always lead to a rejection, it will affect how much interest you’re charged.
Will lenders assess my monthly revenue?
Yes. Allowing lenders to assess your monthly revenue offers them the ability to determine the likelihood of you repaying the agreement on time. If you’re able to show that you have a reliable income each month, you can use this to put forward an argument for a larger lump sum or a lower interest rate.
Will I need to present collateral?
If you decide to apply for a Secured Business Loan, Bridging Loan or a Commercial Mortgage, you’ll be required to present collateral. In the context of these products, collateral is usually in the form of property. On the other hand, using an Unsecured Business Loan doesn’t require you to make such a commitment, but can be harder to acquire on account of the increased risk to the lender.
Thinking about applying for a Dental Practice Loan?
If you’re thinking about establishing or buying a dental practice, making sure that you’ve got access to the necessary financial support can be difficult. This is especially true if you don’t know where to look. Fortunately, thanks to the Alternative Finance Industry, you now have access to a wide range of business finance solutions. All you have to do is source an agreement which is in line with your goals.
At Rangewell, we’re an Access to Finance specialist working with over 300 lenders to offer you an overview of more than 23,000 business finance products. Our services are free to use, we have an in-depth knowledge of your sector and we’ll also guide through the application process. We’re with you every step of the way. So if you’re looking to establish or acquire an existing dental surgery, apply for a Dental Practice Loan today or find out more with Rangewell.
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