How to Apply for a Dental Practice Loan
Everything you need to know about the dental finance application process, and how to secure the funds you need to succeed.
Whether you're planning to buy a second practice or want to refinance your current business, specialist dental finance can help you to realise these goals.
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The right funding can help your business grow. There are many different kinds of dental finance, including specialist startup loans for dentists and even dental equipment finance and refinancing packages.
No two dental practices are the same, so it's important that your finance works alongside your business goals. So, if you are just starting a dental practice with a partner or you need to help with cash flow, then this needs to be taken into account in your finance application.
At Rangewell, we work with dentists to find and secure the funding they need to run and grow their dental businesses. Our team of expert advisors work with you to apply for finance, including searching the whole of market for the right finance to suit your needs. As independent brokers, we can explore dental practice finance options from traditional and online lenders, so we can be sure that the type of financing you choose is right for you and your business.
Ready to kick off your application? Get in touch with Rangewell today, or keep reading to learn more about how the application process works and what to expect.
Review your personal income and expenses
Regardless of the type of finance you need, all applications start in the same way. We will review your financial situation, including your spending against your personal income. We know that lenders prioritise practitioners who can demonstrate the ability to meet repayment terms of any existing finance arrangements.
For example, if you are spending more than you earn, then this may demonstrate that you are not financially savvy and, therefore, a bigger risk in their eyes. Remember, if you are starting a dental practice with a partner, then both parties will be taken into account when it comes to financing. Depending on the product, you may need to provide information regarding your credit score and other personal finances.
Once we've got your finances in order and can demonstrate a responsible attitude towards money and finance, it's easier to assemble a comprehensive application for any type of finance. Lenders make decisions based on risk, so this helps us minimise the risks in their eyes and give you access to the best possible financing option for your circumstances.
Prepare your bank statements and previous financial reports
Depending on whether you are starting a new squat dental practice, or looking for funding to grow your current practice, you will need to provide financial information, such as annual turnover and any existing debts.
If this is your first solo venture, then your personal finances will play a significant role in your application. In contrast, established practices will have business accounts and possibly even an existing business plan that demonstrates the business's current situation and goals.
If you’re able to show astute financial planning with a clear means of keeping your finances in order, you’ll be in a much stronger position to convince lenders that you will repay the agreement on time.
Don't worry if you are hoping to refinance as a means of debt consolidation; it's best to provide as much information as possible about your current business debt situation, so we can work with lenders to find the right refinancing packages for you.
Review your credit profile
Before applying for a dental loan, you should also take the time to review your credit profile. You can do this by simply requesting a credit report from one of the UK’s leading credit agencies (such as Experian, Equifax, and Callcredit).
This will provide you with the opportunity to spot any issues that may affect your application and perhaps find a way to resolve them. If there are issues that you believe shouldn’t be on there, you need to get in contact with the credit agency responsible for the report as soon as possible.
Your credit report is an important aspect of the application process, especially when starting a dental practice. This allows lenders to gain an in-depth understanding of your financial situation, financial management and the risk of you defaulting.
So, when carrying out checks, lenders will incorporate into their search whether you have any recent or past CCJs, Accelerated Payment Notices (APNs), arrears, unresolved debt (e.g. credit card debts) and your history of repaying debt on time. If there are any issues, they may affect your credit score, which, in turn, affects the interest rate that you’re offered. So the weaker your credit history, the more interest you’ll need to pay throughout the agreement, and vice versa.
Assess your partner’s financial background
If you’re running or are thinking about running a dental practice in partnership with anyone else, they’ll also be subject to the same rigorous checks as you.
As such, you should review their personal and business credit profiles as well. If there are any issues, whether outstanding or historically, you should try to find a way to resolve them before applying, if possible.
Choose an appropriate finance intermediary
Finally, you need to find a suitable finance expert who has experience in your sector. Preferably, they should be able to work with as many finance solutions and lenders as possible, giving you a comprehensive overview of the funding opportunities for dentists. So, whether you opt for a traditional or online lender, they can support your application and ensure you get the best possible loan terms and affordable monthly payments that fit within your existing business structure.
Their experience should also allow them to identify which lenders to approach and what strategies to employ, increasing your chances of gaining a favourable and cost-effective agreement. In addition, their services should be independent, impartial and data-led.
Need help buying your own dental practice?
Deciding to buy your own dental practice is a big decision and one that requires a lot of thought and detailed planning. So, whilst considering the types of dental practice finance available, you should also be getting the key components of your application prepared beforehand, saving you both time and unnecessary stress.
By ensuring that you are organised beforehand and have your finances sorted, you can achieve your goals in complete confidence. All you have to do now is source the most appropriate agreement from a reputable lender - whether you're looking at start-up funding, buy-ins or the finance you need to grow your dental practice.
At Rangewell, we've got a proven track record of working with dentists to find and secure funding. We'll guide you through the application process, including identifying any risks and helping to narrow down any options, so you can make the right choice for your business.