Finance and valuation
Practice loan
A practice loan is a business loan used to buy, start or expand a dental practice, repaid from practice earnings and often secured by assets.
The SBA describes its 7(a) program as its primary business loan program, providing a loan guarantee to lenders so they can help small businesses with special requirements. The ADA's startup guidance says many banks set a loan limit for dentistry startups and almost all require the borrower to provide a capital investment. The ADA also advises running basic projections as a reality check before talking with lenders. Lenders usually ask for a business plan and practice financial statements, and for a purchase they may rely on a practice valuation. Loan terms, rates and personal guarantees should be reviewed with an attorney and a CPA.