At
Metropolitan Bank, we recognize that while you know your way around the
bicuspids, you may not be familiar with the wide array of financial
services available to dentists. We’ve assembled this comprehensive guide
to banking for dentists and dental practice loans that you can use as a
reference whenever you need to make changes in your practice. Whether
you are ready to open a new dental practice, buy into an existing dental
group, or grow your practice, we hope you will find the resources in
this guide helpful.
When Do I Need Dental Practice Financing?
There are several different reasons you may seek a loan for your
dental practice. Metropolitan Bank offers financing for dentists who are
starting their own practice, buying out someone else’s practice, or
upgrading with new equipment.
Loans for dentists can cover a range of items including:
• New building purchase
• Practice financing
• Equipment financing
• New building construction
• Debt consolidation
• Dental office expansion
• Facility refinancing
• Student debt
• Practice financing
• Equipment financing
• New building construction
• Debt consolidation
• Dental office expansion
• Facility refinancing
• Student debt
If you are starting a new dental practice, you may find that
it is a particularly expensive and daunting undertaking. Even if
you have saved funds for this move, you may need additional funds to get
started. You may also need a dental equipment loan and a real
estate loan.
When making a change to your practice, or starting a new one, you
want to investigate all the loan options available to you. A community
bank like Metropolitan Bank will offer the personal attention and customized
solutions that make the process go smoothly.
Lines of Credit for Dentists
In addition to borrowing a lump sum of money for a specific purpose
in your dental practice, you may benefit from having access to extra
cash on hand to cover operating expenses that come up unexpectedly. Cash
flow, especially in a new practice, can be tight. You must pay rent or a
mortgage on your building and make payroll no matter how many clients
you have coming through the door. In the beginning, there could be some
lean weeks.
Even after you get a full schedule of clients booked each week, you
could have other unexpected expenses. Sometimes equipment breaks or
needs more than just routine maintenance. You may need to purchase
expensive materials. There are many situations that might threaten your
short-term cash supply.
Establishing a line of credit will provide a safety net for those
financial surprises in the management of your dental office. This is
something you want to consider in advance. Do you have enough cash on
hand for any contingencies that may arise? A line of credit can provide
peace of mind, allowing you to focus on patient care and day-to-day
tasks for your practice.
Cash Management for Dentists
Managing cash flow is an essential part of running any business.
Running your practice can involve large expenses that are not equalized
over time. One month may be just the regular expenses of payroll, rent
and energy charges, but the next month could suddenly include supply
costs or lab charges incurred on behalf of your patients.
The money you charge your patients for your services will cover
these expenses, but the timing of those payments could present a
challenge. You may be running a dental practice where the receivables
exceed the payables at the end of the year, but some months may not work
out that way.
One of the most important and unpredictable factors could be
insurance company payments. Those payments may not always come in right
away, and some may even be disputed before they are paid. When there is a
large gap in time between the date of service and the date of payment,
you could end up managing a financial crisis.
Another big factor in cash flow is unpredictability of patients.
You may have many regular patients, but you cannot predict when each one
will need your services. Your cash flow can be variable from month to
month just due to the needs of your clients. It is hard to keep your
practice on budget when income fluctuates too much.
The online cash management services from Metropolitan Bank
will help manage cash flow for your dental office. The banking services
included in a cash management system will allow you to accept all forms
of payment from your customers, transfer funds, pay vendors and
employees, deposit checks from your desktop and ensure your funds and
transactions are secure.
Leasing Dental Equipment
Just like buying or leasing a car, there are advantages and
disadvantages to leasing equipment. The primary advantage is that you
can get the equipment you need before you can afford to purchase it out
right. Depending on the lease agreement, there can be other advantages,
as well. You may be able to afford newer equipment in a lease deal
rather than what you could buy on your budget. Maintaining or replacing
the equipment may be easier in a lease deal, again, depending on the
terms offered.
Buying equipment generally provides a price advantage. Since you
pay for the equipment up front rather than over time, there is no
interest charge to worry about. And, if you can afford to buy your
equipment, it is usually a one-time transaction. You do not have to
worry about fitting payments into your budget for the next several
years. Maintenance on the equipment, however, is your sole
responsibility unless your purchase includes some type of maintenance
agreement.
Each time you need a new piece of equipment, it is a good idea to
get some financial advice on the best terms for your practice. There are
several different ways to buy or lease equipment for your dental
office, so it would be helpful to have your accountant or banker analyze
your situation and help you make the right decision for your financial
future.
Metropolitan Bank is Your Expert for Dental Practice Loans
One of the most beneficial action you can take is to find a bank
that can help develop and grow your business. Your practice is going to
be a part of the community wherever it is located, and it could grow and
thrive there for the next twenty years or more. You’ll want to work
with a financial institution that is also part of that community.
Metropolitan Bank is part of the community where you do business,
so we have a stake in your success. Our personal service and customized
solutions mean you get the answers you need quickly, and we can
recommend financial services that work for your individual needs. Connect with us today to find out how we can help make your dental practice a success.
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