What funding is available to buy a dental practice?
Whether you plan on buying an existing practice, buying out a competitor, or if you're looking to buy a second site to expand your current operation - this will require a substantial investment. There are multiple options for dental practice loans, here are just a few examples.
There may be multiple reasons why dental practices should apply for a business loan - they can be one of the best ways of securing working capital. Here are some examples of common business loans available.
Unsecured loans are flexible alternatives of lending that are better suited for smaller lending amounts.
Secured Loans may be used to borrow upwards of £250,000, and may be more suitable for the costs involved in a business purchase. This is longer-term lending based on the security of your assets.
Buy-in and Buyout finance recognises the challenges and provides funding tailored to help you make full use of the opportunity.
If you'd like to find out more about your credit score, how a credit agreement works, and how this type of loan will benefit you, Rangewell are on hand to provide the support you need.
Buying a franchise
Franchising is becoming more popular with UK dentists. However, it will mean a substantial initial franchise fee and costs for premises and equipment purchases. In addition, there may be a monthly fee and additional expenses to consider once you are up and running, especially in the crucial first few months of operation. Conventional business lenders, such as banks, may not be able to help, as your business is technically a start-up, lacking a business history. A franchise loan with Rangewell may provide the solution.
Merchant cash advance
Any dentist surgery that accepts credit card and debit card payments can take advantage of merchant cash advice (also known as business cash advice or a PDQ loan). A merchant cash advance means there are no fixed monthly payments - a proportion of the transaction sales will be taken as repayment of the unsecured cash injection. This will mean your repayments will flow with your business transactions.
Cash flow can be a major bugbear for many independent dental businesses. With invoice financing, you can unlock the cash tied up in B2B invoices. Gone are the days of waiting for payments to land in your business account. Instead, invoice finance is the most convenient way of managing cash flow and getting paid quickly.
Tax Loans for dental practices
Tax Loans help you to spread the cost of VAT and annual tax demands into monthly payments, helping smooth your cash flow. Our finance experts are on hand to help you deal with your tax bills. Get in touch for more information.
Working Capital Finance for your dental practice
Working Capital Finance is designed to give you additional working capital, often to provide cash to pay staff and suppliers during the early weeks and months of opening a practice or during a period of growth. It is designed to be repaid in the short- to medium-term.
Our practice financing experts can help solve your working capital needs.
What can the dentist business loan be used for?
Dental practices can spend their loan on a wide range of business equipment. Here are some examples.
Buying dental equipment can be expensive, and your dental practice needs to be well equipped! You can use a dental business loan to purchase items such as new dental chairs, x-ray machines, and imaging units. You can also spend it on non-dental related equipment such as IT infrastructure or upgrading your office systems and telecoms systems.
To find out more about business finance, speak to one of our finance professionals.
Securing a dental practice loan can mean that you have the capital to invest in expanding your current practice.
If you’ve been thinking about knocking through a wall to expand your practice, business finance can help you do that. It’s up to you how you spend your money to make your business more profitable.
A dental practice loan will mean that you will have the capital to refresh your practice. It’s the perfect solution for you to get rid of the tired decor and to spruce up the interiors to make your surroundings more comfortable for your customers.
Your dental practice business loan could be used for emergency repairs. Having money in the bank and readily available to carry out those essential repairs can offer peace of mind when your practice only has to stay closed for a minimum amount of time.
What types of finance of available to fund dental equipment?
At Rangewell we have found that Asset Funding can provide the most cost-effective solutions:
If you need to spread the cost of bringing in durable equipment that will go on giving service for years, hire purchase can provide the answer.
If you need to use the latest dental technology without the cost of owning the equipment, leasing will give you the freedom and flexibility you need.
New or used?
Good quality used equipment may be a sound investment. If you are setting up a new practice, it may be the only practical solution to prevent hefty upfront payments. Many sources of used and refurbished dental equipment exist, and many dentists look to source finance to take advantage of the savings it offers.
At Rangewell we can help you spread the cost of used equipment as well as new equipment with asset finance. Contact us to find out more about equipment finance for your practice.
Does my dental practice qualify for a business loan?
Most lenders will lend on an unsecured basis (up to a certain level), so they’ll want to be sure that you have the financial ability to repay them when you take a business loan out.
Usually, when you approach a lender for finance, they’ll ask to see a breakdown of your current assets and liabilities to see how you spend your income.
When looking into your income and expenditure, lenders will usually ask to see your bank statement to verify your income and outcome. Some lenders may ask you for six month’s worth of bank statements to see your income as a dentist.
They’ll look at how you control your funds, so whether you’re overdrawn regularly, they may wish to see three years of your dentist associate accounts to verify your income.
Lenders will look to see if you have a sound financial background and that you can control your finances, which will be needed when managing your own dental practice.
Funding to buy the premises for your dental practice
Premises in a good location will be a major cost for your dental practice. You may need to borrow for the deposit on a long-term lease. Alternatively, you might want to buy a suitable property with a Commercial Mortgage.
A practice loan recognises your professional status and does not require security. It can provide a relatively high level of funding at a preferential rate of interest, which you may use for any business purpose.
Contact us to find out more about this type of funding.
Large-scale finance can be vital if you have major plans for your practice, such as acquiring a competitor.
Growth Finance is a special type of funding designed to fund your plans.
Get our help finding the most competitive lending for your practice. Get in touch with us today for more information.
Goodwill Loans (also known as cash outs) use the value you have built up in your practice as the security for a loan.
They can often provide a sum comparable to your annual turnover. In general, Goodwill Loans are suitable for any purpose inside or outside the business. Many dentists use it to fund investments or property purchases.
We can help you find the most appropriate lending, get in touch with our friendly team to find out more.
Many major projects require funding from more than one source. At Rangewell, we are experienced at creating this kind of ‘Jigsaw' funding, which allows us to use our financial expertise to provide the most cost-effective solution for each aspect of your financial plans.
Contact us to discuss how Jigsaw Funding could be an option for you.
There are many dental finance solutions for your dental practice, so contact Rangewell today to talk through your options and get a clearer understanding of what your practice can achieve.
What if my dental practice has bad credit?
It is possible to get a dental practice loan with bad credit, but you should be aware that not all dental practice loan options will be available, but there will still be solutions to will help you start your practice while working on improving your financial situation.
If you have a less than stellar credit score, speak to Rangewell, we can discuss lending options suited for bad credit.