If you own a dental practice, buying equipment for your clinic can be like pulling teeth.
“It was overwhelming,” Chicago-based dentist Genaro Romo tells NerdWallet. The challenge, he says, is not only deciding what kind of dental chair or X-ray system to buy, but also figuring out how to pay for it all.
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- Dentists in business a year or more with $150,000+ in yearly revenue
- Dentists in business 2+ years, $150,000+ in annual revenue and profitable
- Dentists in business 2+ years with strong financials
- Dentists in business 2+ years, $100,000+ in annual revenue, 3+ employees
Setting up a basic dental practice workspace, called an operatory — which includes a dental chair, lighting and digital X-ray equipment — can cost up to $50,000. Romo adds, “You also have to buy instruments and materials. There’s a lot more than the major equipment.”
Some dental equipment vendors offer lease-to-own and short-term financing options. Romo says he had a “reasonable” monthly payment through a lease-to-own deal for his digital imaging equipment.
San Francisco dentist Vlad Shuster tells NerdWallet he went the traditional route: “All my financing was done through a bank that offered a 10-year fixed rate on my equipment.”
If you don’t have stellar credit, however, or are reluctant to go through the traditional bank application process, which is typically lengthy, online loans are an option. Whatever you choose, Shuster says, doing your due diligence by comparison shopping is essential in getting the best financing for your dental equipment.
Here are some financing options:
If you’ve been in business at least a year and make $150,000 or more in annual revenue: Dealstruck
- Time to funding: two days to two weeks.
- Good for one-time business expenses, including dental equipment.
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Minimum qualifications |
Typical borrower |
|---|---|---|
| Personal credit score | 600 | 660 to 700 |
| Time in business | 1 year | About 5 years |
| Annual revenue | $150,000 | About $1 million to $2 million |
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Dealstruck offers financing for both used and new dental equipment based on fixed terms and payments, according to Candace Klein, the company’s chief strategy officer.
Dealstruck’s lending terms (term loan)
- APR: 11% to 28%
- Loan amount: $50,000 to $250,000
- Loan duration: 6 months to 4 years
The lender says dental offices also can apply for an unsecured $50,000 line of credit to cover expenses. Klein says Dealstruck financing can be used for buying equipment and to cover employee-training costs associated with the equipment.
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If you’ve been in business two years and make $150,000 or more in annual revenue: Funding Circle
- Time to funding: four to 10 days.
- APR is generally lower compared with other online lenders.
- Your dental practice needs to be at least 2 years old and profitable at least one of the last two years.
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Minimum qualifications |
Typical borrower |
|---|---|---|
| Personal credit score | 620 | Average personal credit score is 700 |
| Time in business | 2 years | About 10 years |
| Annual revenue | $150,000 | About $2 million |
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Funding Circle financing works for major expenditures at dental practices, such as buying or replacing dental chairs, says Mike Rabil, Funding Circle’s vice president of partnerships. He notes that the chairs alone represent a large investment, and “in a busy practice, these chairs are exposed to a significant amount of daily wear and tear.”
Funding Circle is a good option if your dental practice has been in business around two years and your finances are in solid shape.
Funding Circle’s lending terms
- APR: 7% to 26%
- Loan amount: $25,000 to $500,000
- Loan duration: 12 to 60 months
If you’ve been in business two or more years and have strong financials: SmartBiz
- Time to funding is seven days or more, depending on how quickly you submit documents required.
- Because they originate SBA loans, APR is typically low.
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Minimum qualifications |
Typical borrower |
|---|---|---|
| Personal credit score | No minimum listed, but most borrowers have at least a 600+ personal FICO score | Average is 705 |
| Time in business | 2 years | About 10 years |
| Annual revenue | No minimum listed, but most borrowers make at least $50,000 | About $1 million |
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SmartBiz has the least expensive online small-business loans, mainly because the lender specializes in U.S. Small Business Administration-guaranteed financing. SmartBiz offers SBA loans of up to $350,000 with an APR of 7.21% to 8.44%.
For example, for a loan of $100,000 for dental equipment and other business needs, the monthly payment would be about $1,120, according to a SmartBiz representative.
Evan Singer, president of SmartBiz, says dental practices have also turned to his company to get better financing deals.
“We’re seeing a lot of dentists refinance high-interest debt with our loans right now,” he tells NerdWallet. Lowering the overall monthly payment means better cash flow.
SmartBiz lending terms
- APR: 7.21% to 8.44%
- Loan amount: $30,000 to $350,000
- Loan duration: 10 years
If you’ve been in business at least two years, make $100,000 in yearly revenue, and have three or more employees: Fundation
- Time to funding: five days.
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Minimum qualifications | Typical borrower |
|---|---|---|
| Credit score | 600 | 680 to 720 |
| Time in business | 2 years | 5 to 10 years |
| Annual revenue | $100,000 | $250,000 to $750,000 |
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Fundation offers term loans of up to $500,000 with an APR of 8% to 30%. Your dental practice should have at least three employees. Fundation is known as a mid-prime lender: It offers financing that’s generally more expensive than a bank, but not as pricey as most online lenders, particularly those offering short-term cash flow loans.
Fundation Lending Terms
- APR range: 8% to 30%
- Loan amount: $20,000 to $500,000
- Loan duration: 1 to 4 years
Dental equipment financing: The bottom line
When it comes to dental equipment financing, you typically will get the best loan deal — including SBA-backed loans — at a traditional bank. But you should also consider online options if your business and personal finances aren’t excellent or if you need faster access to capital.
Financing through online lenders, such as SmartBiz, Dealstruck, Funding Circle and Fundation, is typically more expensive than going with a bank loan, but online loans are a convenient and quick way to get the money you need to buy dental equipment for your practice.
Find and compare small-business loans
NerdWallet has created a comparison tool of the best small-business loans to meet your needs and goals. We gauged lender trustworthiness and user experience, among other factors, and arranged them by categories that include your revenue and how long you’ve been in business.
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Benjamin Pimentel is a staff writer at NerdWallet, a personal finance website. Email: bpimentel@nerdwallet.com. Twitter: @benpimentel
To get more information about funding options and compare them for your small business, visit NerdWallet’s small-business loans page. For free, personalized answers to questions about financing your business, visit the Small Business section of NerdWallet’s Ask an Advisor page.
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