Dental school is anything but cheap, and many graduates are left with a quarter of a million dollars in student loan debt. Opening or operating a practice isn’t cheap either, especially when there’s no money leftover to pay for it.
And to make matters worse, dentists are left with a number of restrictions and disadvantages when seeking traditional financing. But there is another way.
Dentists seeking traditional loan financing for their practice through a bank, credit union or other lender are faced with a few obstacles.
Many lenders like to see better-than-average credit scores or will ask the borrower to provide some form of collateral to secure the loan. This can be tough for anyone saddled with dental school loan payments.
Lack of equity
Small business loans typically do not allow a borrower to cash in on any equity in the practice. Getting more money will require taking out another loan.
Bank loans can come with certain restrictions, such as maintaining your debt-to-equity ratio at a certain level.
Tying up cash
Loans provide financing, but they also tie up cash that can prevent a practice owner from buying new equipment, hiring another employee or making renovations.
Dental practice owners who are saddled with debt have another financing option. Benevis is a dental practice management network that buys private practices for affiliation. If you own any equity in your practice, affiliating with Benevis can be a nice way to put some cash back in your pocket to pay off those dental school loans and free up your cash.
Aside from cashing in on your dental practice investment, affiliating with Benevis brings a number of additional benefits.
Namely, you’ll be able to focus on what you love and dedicate your time to practicing dentistry. No longer will you be burdened with the business side of running a practice. We’ll take care of that part while you do what you’re trained to do.
What does that mean? It means things like managing HR, payroll, purchasing, marketing and facilities management are no longer on your to-do list.
Explore the benefits that Benevis can bring to your practice and consider this alternate route to financing.
American Student Dental Association: http://www.asdanet.org/paying-for-dental-school/
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Zac joined Benevis as a Manager of Talent Acquisition in 2015. He works to identify dentists who would be interested in ownership opportunities at our affiliated practices across the United States. Zac enjoys really getting to know the dentists he works with so he can help them purchase a practice that perfectly suits their needs. Zac spends his free time with his wife and two dogs. When the weather gets warm, you can usually find him on the lake, at a Braves game, or playing golf.