How to finance your dental dream—without getting in over your head
If you’re planning to buy or start a dental practice in 2025, here’s something you need to hear upfront: being bankable matters.
A lot.
That’s the word that came up again and again in our conversation with Lauren Camacho from Bank of America Practice Solutions. And for good reason -whether you’re fresh out of school or finally ready to own your own practice, your ability to look good on paper (a.k.a. bankable) is what opens doors, literally and financially.
So let’s unpack what that actually means, and then walk through the options for dental practice loans that are on the table in 2025.
First, What Does “Bankable” Mean?
If you’re applying for financing, lenders are looking at a few big things:
- Have you been producing income as an associate?
- Do your personal finances look lean and responsible?
- Do you have a decent credit score and some savings?
In Lauren’s words: Don’t go buy a Ferrari just because you finally have a dentist’s salary.
Banks want to see that you’re earning (ideally $150k+), that you’ve got a year of production history under your belt, and that your monthly personal debt payments aren’t sky high. You don’t need to be perfect, but you do need to show them that you’ll be able to handle the loan and keep your practice running.
Traditional Bank Loans
This is probably the most familiar route—and still one of the most accessible, especially for dentists. The dental industry is considered low risk by lenders, so terms are generally favorable.
These loans are ideal for acquisitions, practice buildouts, or big capital projects. But they do require some prep. Think: clean credit, steady production, and some cash reserves to cover a down payment or working capital.
Our advice? If you’re 12–24 months away from making your move, start preparing now. Talk to a lender early, get your financials reviewed, and put yourself in a position where the answer will be “yes” when the right opportunity comes along.
SBA Loans & The 504 Advantage
SBA loans are another solid option, especially if you’re starting from scratch or buying real estate. The benefit here is flexibility: longer repayment terms, lower down payments, and more breathing room as you ramp up your revenue.
One popular version is the SBA 504 loan. It’s structured with two parts: one from the bank and one from the SBA itself. The SBA portion comes with a fixed 25-year rate, which can be a game changer for your monthly cash flow, especially in a high-interest environment like we’ve seen lately.
The only catch? SBA loans involve more paperwork and tend to move more slowly. So again, planning ahead matters.
Line of Credit = Safety Net
Let’s be honest: unexpected expenses are part of owning a business.
A business line of credit is like a financial first-aid kit. You might not need it every day, but when you do, you’ll be glad it’s there.
You only pay interest on what you actually use, and it can help you get through slow months, a temporary cash crunch, or take advantage of growth opportunities (like expanding your team or buying equipment). Just don’t use it like a credit card. It’s not there to cover bad cash flow habits—it’s there to help you solve short-term problems, not fund long-term issues.
Equipment Loans & Creative Financing
This one’s great if you’re not ready for a full practice acquisition but need new gear or want to refresh an older space. Equipment loans are relatively easy to qualify for since the equipment itself serves as collateral.
What’s more interesting is how equipment loans can be part of a creative financing plan, especially for taking over an underperforming or “non-bankable” practice. We’ve seen dentists negotiate new lease terms, self-fund their working capital, finance equipment separately, and basically rebuild a neglected practice into something brand new. It’s not traditional… but it works.
Real Estate & Practice Ownership
Buying the building your practice is in adds another layer. Most banks will treat this as a separate loan from your practice purchase. You might pair a conventional loan for the practice with a 504 SBA loan for the real estate to give yourself a better monthly payment.
There’s also long-term strategy here: owning the real estate means tax benefits, rental income opportunities, and potentially more flexibility when you eventually exit or sell the practice.
So… How Long Does This All Take?
If you’re buying a practice, once you’re approved, it typically takes about 45 days to close, and longer if real estate is involved. For a startup, the timeline stretches out. You might spend 10 months or more just on construction and buildout, depending on your lender’s terms.
In either case, the worst thing you can do is wait until you’ve found the perfect deal to start the financing process. By then, it might be too late. We;ve seen deals fall apart because the buyer wasn’t ready. Don’t be that buyer.
Your Biggest Asset? A Great Team
Lauren said it best: your success depends on your team. That means a dental-savvy CPA, an attorney who knows lease terms, a banker who works in the industry, and a real estate agent who knows how to spot opportunity. You shouldn’t be leading your team—they should be leading you.
Your CPA should be helping you plan ahead. Your lender should be helping you structure smart financing. And when the time comes, your entire team should be working to keep you out of trouble, not pulling you out of it.
Final Thoughts
Financing your first—or next—dental practice doesn’t need to be overwhelming. But it does require planning. That’s the recurring theme from Lauren, and it’s one we strongly believe in too: get ready early, know your numbers, and build the right team around you.
That’s how you become bankable. That’s how you take advantage of the right opportunities when they show up.
And when you’re ready? We’ll be here to help you get your numbers right.
Thinking about buying or starting a practice in 2025?
Let’s talk strategy now – so you’re ready when the opportunity comes knocking.
Simply use the calendar below to book an introductory call.
Until next time.
