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ExtraCreditLENDING MADE SIMPLE

Dental Practice Loans and Financing

Dentistry is an ownership business and an equipment business. Nearly three in four dentists own their practice, and a general dentist in private practice bills about $965,000 a year. Most dental financing goes to three things: equipment, buying or buying into a practice, and expanding one.

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By the numbers

72.5%
of U.S. dentists owned their practice in 2023, down from 84.7% in 2005
$965,660
average gross billings per general dentist in private practice
135,665
dental practice locations in the U.S. in 2023
16%
of dentists were affiliated with a dental support organization in 2024

American Dental Association Health Policy Institute. Billings are from the 2025 Survey of Dental Practice. The practice count is from the U.S. Census Bureau's County Business Patterns.

Common needs and what fits

What you needWhat usually fitsWhy
Treatment units, imaging, or a milling systemEquipment financingThe equipment secures the loan. Up to 100% of cost, on terms up to 72 months.
Buying a practice or buying in as a partnerSBA loanSBA 7(a) loans fund acquisitions and partner buyouts over long terms.
Adding operatories or a second officeSBA loanA large, planned project suits long-term money. A term loan is faster if you cannot wait.
Cash flow while insurance claims are pendingLine of creditDraw in a slow stretch, repay when claims pay.
Hiring an associate or a hygienistTerm loanCovers payroll until the new chair is producing.
A new-patient marketing pushWorking capital financingFast. The offer may be a loan or revenue-based financing repaid from collections. Make sure the new patients are worth more than the cost.

An ownership business

Most dentists still work for themselves. The American Dental Association’s Health Policy Institute found that 72.5% of U.S. dentists owned their practice in 2023.

That share is falling. It was 84.7% in 2005. Dental support organizations, the corporate groups that run or support practices, now count 16% of dentists as affiliates.

Those groups bring capital. An independent practice that wants the same imaging, the same milling system, and the same updated operatories has to fund them itself. That is what most dental financing is for.

An equipment business

A dental office is a small surgical facility. The list of what it needs is long:

  • Treatment units and delivery systems
  • Digital X-ray and 3D imaging
  • Scanners and in-office milling
  • Sterilization and compressors
  • Practice-management software and computers

Equipment financing fits because the equipment secures the loan. Kapitus finances up to 100% of the cost for qualified buyers, on terms up to 72 months, with rates starting at 7.5%.

What a lender sees in a dental practice

Dental practices underwrite well.

  • Revenue per dentist is high. General dentists in private practice average $965,660 in gross billings. Specialists average $1,213,040.
  • Cash comes two ways. Insurance pays part. Patients pay the rest, often at the visit. That shortens the wait compared with a medical practice.
  • Deposits are frequent. Card payments and insurance payments arrive daily.
  • Patients come back. Recall visits make revenue predictable.

What gets a closer look:

  • One-dentist risk. If you cannot work, production stops.
  • Debt already on the books. Practice loans and equipment loans come off what you can carry.
  • Insurance mix. A practice that depends on a few low-paying plans has thinner margins.

Buying or buying into a practice

A purchase is the largest financing most dentists ever do. An SBA 7(a) loan is the usual tool:

  • Loans up to $5 million
  • Terms long enough to keep the payment manageable
  • About 10% down
  • A 680 credit score
  • Three to six months to close, on average

Start early. If a seller wants to close in 60 days, an SBA loan may not get there in time.

Dental practice loans: what you can get

Product Amount Term Typical use in a dental practice
Equipment financing Up to 100% of cost Up to 72 months Treatment units, imaging, scanners, milling
SBA 7(a) loan Up to $5 million Up to 25 years Buying a practice, a buy-in, a build-out
Line of credit Up to $750,000 Up to 24 months Payroll and supplies while insurance pays
Term loan Up to $5 million 6 to 36 months A hire, a repair, an opportunity with a deadline
Business HELOC Up to $750,000 5 to 30 years Low-rate capital for an owner with home equity

Amounts and terms are what our primary lender publishes; your offer is sized to your production and bank balances.

Matching the tool to the need

Dental practice financing requirements

The starting points are the same as for any business: 2 years in business, $250,000 in annual revenue, and a credit score of 600 or higher, with floors that run from 600 to 680 depending on the lender. Equipment financing can start at 1 year with some lenders. An SBA practice loan asks more: a 680 score published, above 700 in our experience, and about 10% down.

Have these ready:

  • 3 to 6 months of business bank statements
  • Monthly production and collection reports
  • For equipment, the vendor’s quote
  • For a purchase, the seller’s tax returns and financial statements

Check your number with the funding estimator.

Sources

Common questions

How do dentists finance equipment?

Usually with equipment financing, where the equipment itself secures the loan. Kapitus lists dental treatment units among the equipment it finances, at up to 100% of cost for qualified buyers, on terms up to 72 months.

What is the best loan to buy a dental practice?

An SBA 7(a) loan is the common choice for a practice purchase or a partner buy-in, because of its long term and lower cost. Expect a 680 credit score, about 10% down, and several months from application to funding.

Can I get dental practice financing with student loans?

Student debt alone usually does not disqualify you. Lenders look at whether the practice's cash flow covers the new payment along with what you already owe.

How much can a dental practice borrow?

For short-term working capital, it depends mostly on monthly collections, time in business, and credit. A practice collecting $80,000 a month could see roughly $64,000 to $240,000. Equipment and SBA loans are sized separately and can go higher.

Should I lease or buy dental equipment?

Buy with financing if you will use the equipment for most of its life, since you own it at the end. Lease if the technology changes fast and you expect to replace it. Kapitus offers leasing only when the equipment vendor allows it.

ExtraCredit Loans is a loan marketplace. We act as a broker, not a direct lender. We may be paid by a lender when a financing closes. How we get paid.

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