Would A Bank Lend To Your Dental Practice?
Most of the time, banks are very willing to give loans to dental practices, for good reason. The industry is growing, it has a tendency to hold its own during a recession, and the advances in technology are reassuring. However, dental professionals find it frustrating to deal with the high capital for equipment and leasehold improvements.
So, even though dental practices can be places banks are eager to lend to, they do still have strict underwriting requirements and specific areas of your practice they’ll focus on. Some of these factors include:
- Payment policy
- The number of patients you see
- The abilities of your dental team
- Cash flow whether it’s enough to cover office expenses, your personal debt, and the new loan
- The number of operatories
- Efficiency of your scheduling
- Your current technology
- The number of patient referrals coming to your practice
- The amount of revenue generated by hygiene
- Your relationship with other dental practices in your area
As you may have noticed, these are the same factors that you would consider when trying to increase profits, bring in new patients, and eventually put your practice on the market. Before seeking a loan, consider contacting Dental Bookkeeping, as we can help you improve in any of these areas and help you get your practice on track!