Buying equipment for your dental practice can be like pulling teeth.
“It was overwhelming,” Chicago-based dentist Genaro Romo says. 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.
Setting up a basic workspace for a dental practice, including a dental chair, lighting and digital X-ray equipment, can cost up to $50,000, Romo says. “You also have to buy instruments and materials,” he adds. “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.
If you don’t have stellar credit or you’re reluctant to go through the traditional — and typically lengthy — bank application process, online small-business loans are an option.
How Much Do You Need?
Our pick for
Strong businesses
See Your Options
with Fundera by Nerdwallet
SBA 7(a) loan
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with Fundera by Nerdwallet
Est. APR
5.50-8.00%
Min. Credit Score
650
7(a) program participants include specialized lenders like Live Oak Bank and big-name traditional banks like Wells Fargo.
Pros
- Available as a term loan or line of credit.
- Interest rates are capped.
- Long repayment terms available.
Cons
- Personal guarantee is required.
- Collateral is typically required.
- Longer processing times than online lenders.
Qualifications:
- Be a for-profit U.S. business.
- Must first use alternative financial resources, including personal assets.
- Financial qualifications determined by individual lender.
Lowest interest rate
Our pick for
Competitive borrowing costs
See Your Options
with Fundera by Nerdwallet
Funding Circle - Online term loan
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with Fundera by Nerdwallet
Est. APR
12.18-36.00%
Min. Credit Score
660
Funding Circle is an option for established businesses that are financing an expansion or refinancing debt.
Pros
- Cash can be available within 3 business days.
- Competitive rates among online lenders.
- No minimum revenue requirement.
Cons
- Requires business lien and personal guarantee.
- Not available in Nevada.
Qualifications:
- Minimum credit score: 660.
- Minimum time in business: 2 years.
- Minimum annual revenue: None.
- No bankruptices in the past 7 years.
May fund quickly
How Much Do You Need?
Summary of Dental Equipment Financing: Compare Online Lenders
| Lender | Best For | Est. APR | Min. Credit Score | Next Steps |
|---|---|---|---|---|
SBA 7(a) loan See Your Options with Fundera by Nerdwallet | Best for Strong businesses | 5.50-8.00% | 650 | See Your Options with Fundera by Nerdwallet |
Funding Circle - Online term loan See Your Options with Fundera by Nerdwallet | Best for Competitive borrowing costs | 12.18-36.00% | 660 | See Your Options with Fundera by Nerdwallet |
For strong businesses: SBA loans
Loans guaranteed by the U.S. Small Business Administration are among the least expensive options for dental equipment financing, with SBA loan rates ranging from 5.50% to 8.25%. Multiple lenders participate in the SBA loan program, and funding amounts can be as much as $5 million.
In addition to purchasing equipment, dental practices can also refinance their existing debt with an SBA loan. Lowering your overall monthly payment means better cash flow to afford other expenses.
For competitive borrowing costs: Funding Circle
Funding Circle offers financing for major expenditures at dental practices, such as buying or replacing dental chairs. Chairs alone can be a large investment, as they experience a significant amount of daily wear and tear in a busy practice.
Funding Circle is a good option if your dental practice has been in business around two years and your finances are in solid shape.
Compare small-business loans
Compare equipment financing options to find the best deal for your business. NerdWallet has a list of the best small-business loans. All of our recommendations are based on the lender’s market scope and track record and on the needs of business owners, as well as rates and other factors, so you can make the right financing decision.
Last updated on November 21, 2019
To recap our selections...
Dental Equipment Financing: Compare Online Lenders
- SBA 7(a) loan: Best for Strong businesses
- Funding Circle - Online term loan: Best for Competitive borrowing costs