Business loans for dentists typically follow the same guidelines as other commercial business loans, with just a few different caveats that you would not need to follow. One of the best ways to secure business loans for dentists is to have all the documents you need ready to submit.
Opening a new dental practice or even buying an existing practice is not cheap. On average, you can expect to invest about $500,000 to get started. Most dentists rely on business loans for dentists to get started in their new practice.
The bank requests documents to gauge if you are a good risk for the loan and if you have the ability to run this type of business. The bank wants to see that you are creditworthy, that you pay your bills on time, and that you have the experience to succeed in this business. The bank would also like to see that there is going to be enough collateral to cover the value of the loan.
Some of the documentation is personal documents and some of the documents you will provide will be focused on business.
You will need to provide a personal financial statement. The statement will include your income, your debt, your overall overhead, and all of your assets like your personal home.
If you have yet to establish a business, you will have to provide your personal tax returns. In some cases, you need to provide up to three years of personal tax returns. Tax returns are used to verify your income.
The bank may request a copy of your resume and credentials. This work history will provide information about your career track and job stability for the last three years and beyond.
You will need a business plan if this is a new practice. The plan should outline how you plan on making your business a success. If you currently own a practice and are adding a new one, you will need to provide a profit and loss statement and business tax returns.
Having all your ducks in a row early in the process can make the process easier. Business loans for dentists take a little effort, but come with a lot of reward.