Key Takeaways
- Average loan size: $350K
- Approval rate: 91% for qualified applicants
- Typical funding timeline: 10-21 Days
- Average borrower revenue: $1.4M
- Check your Bankability Score to see personalized options
A dental practice loan is a financing product designed for dentists seeking to start, acquire, equip, or expand a dental practice. Dentistry ranks among the most bankable professions in commercial lending—lenders recognize the combination of high patient demand, recurring revenue, and professional stability that makes dental practices exceptionally reliable borrowers. Bankable connects dentists with lenders offering specialized dental programs that feature reduced paperwork, premium rates, and terms structured around the unique economics of dental practice ownership.
Industry Challenges
- Practice acquisition costs ranging from $500K to $1.5M for established practices
- Dental equipment costs ($50K-$200K per operatory for chairs, imaging, digital systems)
- Student loan debt averaging $280K+ for dental school graduates
- Insurance reimbursement delays of 30-60 days for major procedures
- Technology upgrades (CBCT, CAD/CAM, digital scanners) requiring ongoing capital
- Staffing costs for hygienists, assistants, and front office consuming 25-30% of revenue
Funding Solutions
- Practice Acquisition Loans: Finance up to 100% of an existing dental practice purchase. SBA and conventional programs available with dental-specific underwriting.
- Dental Equipment Financing: Fund chairs, digital imaging, CAD/CAM systems, CBCT scanners, and operatory buildouts with the equipment as collateral.
- Practice Expansion Lines: Revolving credit from $100K-$750K for adding operatories, associates, or satellite locations.
- Startup Practice Loans: Specialized programs for new dentists opening their first practice, with favorable terms even with student debt.
- Working Capital: Bridge insurance reimbursement gaps and fund marketing to build your patient base.
Capital Products
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Explore →Frequently Asked Questions
Established dental practices typically sell for 60-80% of annual collections. A practice collecting $1M annually would sell for $600K-$800K. Add $50K-$150K for equipment upgrades and working capital, and total acquisition costs range from $650K to $1M+.
Yes. Multiple lenders offer startup and acquisition programs specifically for recent dental graduates. These programs account for student debt and evaluate your clinical training, specialty certifications, and the practice opportunity rather than requiring years of ownership experience.
Dental professionals receive premium rates: SBA loans from Prime + 2.25%, conventional practice loans from 5-8%, and equipment financing from 4-7%. These are among the lowest rates in commercial lending, reflecting the industry's low default rates.
Buying an established practice is generally recommended because you inherit patients, staff, and cash flow from day one. Startups take 12-24 months to reach profitability. However, startups offer more location flexibility and lower total cost if you're in an underserved area.
Dental equipment financing covers 100% of equipment cost with no down payment required. Individual items or full operatory buildouts ($100K-$300K per operatory) qualify. Terms run 5-7 years with rates from 4-7% for qualified borrowers.