Start up finance for your dental practice
Setting up a successful new dental practice will depend on access to the funding you need
Any start-up business faces a funding hurdle. Traditional lenders are only interested in lending to established businesses with years of audited accounts. Even the new breed of online business lenders usually want evidence of a year’s trading, with online accounts and VAT returns before they will consider an application.
However, setting up your own dental practice demands premises, equipment, marketing, and working finance until you have built up a patient list and become profitable.
Whether you borrow money, dip into your savings, look for equity investors or go another route, you need to understand all your options before you decide. At Rangewell, we can show you all the options, and we have a 5-step plan to help you to secure the finance you need.
Step 1 Your first step should be to ensure you understand the real costs and challenges your new business will present. You should be able to decide on a clear figure of just how much finance you will need, with costings for your chair, drill - all the equipment you need in your surgery.
Step 2 Then ensure that your own personal financial situation has no issues like outstanding debts, CCJs or other negatives. You may need to provide a Personal Guarantee to secure the funding you need.
Step 3 Prepare a business plan with a forecast profit and loss, your balance sheet and your cash flow. This should help you see how much funding you need and help lenders or investors understand the potential of your business.
Step 4 Now simply contact us. We’ll help you use your business plan as a tool to help secure the funding you need. Because we work across the entire UK lending market, we know which lenders to approach.
Step 5 We will find lenders who are prepared to provide the finance you need and use our unique online system to ensure you can secure the funds you want at the most competitive rate.
The types of funding you might consider for your start-up
Premises will be a major cost for your new practice, but buying with a commercial mortgage may cut costs compared with leasing. Commercial Mortgages work much like a residential mortgage, and can be used to help you buy a surgery or even an existing practice. Some lenders have a minimum loan value of £75,000 or more, but there is no set upper limit.
Commercial Property Finance is arranged on an individual basis. Rates and terms will be agreed based on your business plans.
There are two types of commercial loan - Secured and Unsecured - which could provide the funding you need.
- Secured Loans must be supported by security, such as your home, that the lender would take and sell if you became unable to make repayments. This reduces the risk to lenders, and allows them to reduce the cost to you, with rates that can be as low as 2% above base rate, and ten or more years to repay.
- Unsecured Loans are a straightforward way of borrowing, and operate much like a personal loan. The loan is repaid in monthly or quarterly instalments over an agreed term under 5 years. Decisions can be fast but you will need to provide a personal guarantee meaning that you will become personally liable for the debt if your business was unable to pay.
Asset Finance covers a range of funding solutions designed to let you spread the cost of equipment :
Hire Purchase lets you acquire equipment straight away, with a single deposit payment. It then lets you spread the costs in regular monthly instalments over up to 5 years. At the end of this term, you own the asset outright, making it ideal for items which have a high cost and a relatively long life.
Leasing works much like a rental agreement. It lets you use the equipment without having to buy it, with a payment each month to the finance company. For technical equipment which could go out of date, leasing can be ideal, as it can be easy to update when a better model becomes available. Leasing can also include maintenance agreements - meaning that keeping your equipment in perfect condition remains the responsibility of the lender - helping you avoid any unexpected costs.
Government-backed Start-up Loans
Government supported start-up loans are now available for entrepreneurs looking to start a business. The scheme is designed for individuals over the age of 18 who have a viable business plan, but no access to finance. The scheme can provide loans to businesses in every sector.
Setting up a practice may mean a range of funding is required. We can provide Jigsaw Funding - a bespoke package made up of the most appropriate type of funding for each need. We have found that it can help people ready to make the most of their business, access a higher level of funding that could be provided by a single finance option - and reduce costs.
REAL EXAMPLES OF WHAT WE CAN DO
Find funding to allow a new practice to acquire premises
Help find the most competitive funding to fud the first months of a new practice
Source a professional loan for dentist ready to start a practice
Find the most competitive lender for equipment and spread the cost with HP
Help arrange ‘jigsaw’ funding for all aspects of a startup
Getting the help you need from Rangewell
Coming to Rangewell means getting a team of financial experts working for you and your new practice.
We can discuss your objectives, point out the challenges and the opportunities and help find answers that are right for you.
We can help you with financial solutions that can scale to fit your business and find the most competitive rates for all types of finance, including Professional Loans, Unsecured and Secured Loans, Invoice Finance, Asset Finance, Merchant Cash Advance, Commercial Mortgages, Growth Finance and more.
To find out more about setting up the finance you need to set up your practice simply call us. Our experts are ready to help.
Meet real dentists who have recently started up
Helping you build your profits
Funding to suit your plansEvery practice is different, and we can work with you to find financial solutions designed around your particular circumstances.
Take your pick of the lending marketWe understand all types of business finance, and have mapped thousands of products from hundreds of suppliers.
Experience in the dental sectorOur expert team includes people who have worked with dental practices. They understand the challenges you face, and know the answers.
Jigsaw FinanceYou may need finance with different types of lending for specific purposes. Because we cover the entire business lending market, we can help you find tailored jigsaw funding.
Getting government supportGovernment start-up funding can help provide the investment you need. At Rangewell, we can help you secure it.
Finance that can grow with youHaving flexible funding that can grow with you could help you make the most of the potential of your practice.
Download Rangewell’s free and detailed guide to Funding your Startup
What finance is available for startups?
Can a loan get your business off the ground?
What are the real costs?
Why you must find the right lender - and why most lenders can’t help
The downsides of borrowing
What are guarantees and security?
Key Terms to check
Money management skills are essentialManaging money is key to a successful business. You’ll need to understand banking, cashflow, bookkeeping and accounts, and more.
Loans have to be repaidIf you secure lending to launch your business, you will have to repay it from the profits you make. You need to be confident that your business can generate the necessary funds.
Can you afford to risk your assets?You might have to take out a secured loan based on the value of your home. What if your business failed and you were forced to sell your house?
Our service is...
ImpartialTransparent and independent, treating all lenders equally, finding the best deals.
In-depthEvery type of finance for every type of business from the entire market - over 300 lenders.
In-personSpecialist Finance Experts support you every step of the way.
FreeWe make no charge of any kind when we help you find the loan you need.