Opening a dental practice is a major professional milestone—and a major financial undertaking. From acquiring equipment and securing office space to hiring staff and marketing the practice, startup costs can quickly reach six or seven figures. That’s why dental practice financing plays such a critical role in helping dentists turn years of training into a thriving, independent business.
This guide explains how dentists finance new practices, the funding options available, and how the right financial structure can set a practice up for long-term success. Whether you’re a new graduate or an experienced dentist opening a second location, understanding your financing strategy is essential.
Dental practice financing refers to the funding solutions dentists use to start, acquire, or expand a dental office. Unlike personal loans, these financing options are designed specifically for business use and often tailored to healthcare professionals.
A well-structured financing plan can cover:
Practice startup or acquisition costs
Dental equipment and technology
Leasehold improvements and buildouts
Initial operating capital
Marketing and patient acquisition
Because dental practices have predictable revenue models and high demand, lenders often view them as attractive borrowers—when the financing is structured correctly.
Even dentists with strong personal savings typically rely on financing. Paying cash for a practice can limit growth and strain liquidity, especially during the early months before patient volume stabilizes.
Preserves cash flow: Keeps working capital available for payroll, supplies, and marketing
Accelerates growth: Allows dentists to open sooner and scale faster
Access to modern equipment: Makes high-quality imaging, chairs, and software affordable
Builds business credit: Establishes a strong financial profile for future expansion
Tax efficiency: Certain financing structures may offer depreciation and interest deductions
Strategic dental practice financing is less about taking on debt and more about deploying capital effectively.
Financing a dental practice typically follows a structured process. Understanding each step helps dentists prepare and improve approval odds.
Lenders want clarity. Dentists must decide whether they are:
Starting a practice from scratch
Buying an existing practice
Partnering into an established office
Opening a satellite location
Each model carries different funding requirements and risk profiles.
Startup costs often include:
Dental equipment and technology
Lease deposits and renovations
Furniture and IT systems
Licensing, insurance, and legal fees
Initial marketing and staffing
According to industry data reported by Forbes, dental practice startup costs can range from $350,000 to over $750,000 depending on location and scope.
Most lenders will request:
Personal credit history
Dental school transcripts or resume
Business plan or pro forma
Practice location details
Existing debt obligations
Strong preparation can significantly shorten approval timelines.
Dentists often combine multiple funding products to meet different needs, such as pairing equipment financing with a working capital loan.
Once approved, funds are disbursed according to the financing structure, allowing the dentist to move forward with buildout, hiring, and opening.
Not all financing options serve the same purpose. Choosing the right type depends on where you are in your practice journey.
SBA-backed loans are one of the most popular options for dentists due to their:
Longer repayment terms
Lower down payment requirements
Competitive interest rates
The U.S. Small Business Administration highlights healthcare practices as strong candidates for SBA financing because of stable demand and predictable cash flow.
Source: https://www.sba.gov
When purchasing an existing dental practice, acquisition loans help cover:
Goodwill and patient base
Equipment and inventory
Transition costs
These loans are commonly structured to align with the acquired practice’s cash flow.
Equipment financing allows dentists to acquire essential tools such as:
Digital X-ray systems
Dental chairs and operatories
CAD/CAM technology
Because the equipment serves as collateral, approval requirements are often more flexible.
Working capital financing supports day-to-day operations, including:
Payroll
Supplies
Marketing campaigns
Cash flow gaps
This type of financing is especially useful during the first year of operations.
A line of credit provides flexible access to funds as needed, making it ideal for managing ongoing expenses or unexpected costs.
Dental practice financing is well-suited for:
New dental school graduates opening their first practice
Associate dentists transitioning to ownership
Dentists acquiring an existing practice
Practice owners expanding to new locations
Dentists upgrading equipment or technology
According to data from the U.S. Census Bureau, healthcare services—including dental offices—continue to grow steadily, reinforcing the long-term viability of dental practices.
Source: https://www.census.gov
Dentists sometimes consider alternatives such as personal loans or investor partnerships. While these options can work in limited cases, they often come with trade-offs.
Using savings avoids interest costs but can leave the practice undercapitalized. Financing preserves liquidity and reduces personal financial risk.
Bringing in investors may dilute ownership and decision-making authority. Most dentists prefer full control of their practice.
Credit cards carry high interest rates and are rarely suitable for large startup expenses.
For most dentists, professional dental practice financing offers the best balance of control, affordability, and scalability.
Crestmont Capital specializes in helping professionals secure smart, growth-focused financing. Their approach is consultative, not transactional—meaning dentists receive guidance, not just funding.
Crestmont Capital supports dentists with:
SBA loan programs tailored for healthcare practices
https://crestmontcapital.com/sba-loans/
Dental equipment financing for modern, efficient offices
https://crestmontcapital.com/equipment-financing/
Business loans designed to support startup and expansion needs
https://crestmontcapital.com/business-loans/
Business lines of credit for flexible working capital
https://crestmontcapital.com/business-lines-of-credit/
By understanding the unique economics of dental practices, Crestmont Capital helps dentists structure financing that aligns with long-term success.
A recent dental school graduate secures an SBA loan to fund buildout, equipment, and initial operating capital, allowing them to open without exhausting personal savings.
An associate dentist uses a practice acquisition loan to purchase an established office with an existing patient base, minimizing ramp-up time.
An established dentist combines equipment financing with a line of credit to open a second office in a growing suburban market.
A practice owner finances digital imaging and CAD/CAM equipment to improve patient experience and increase efficiency.
A startup practice uses working capital financing to cover payroll and marketing expenses during the first six months.
Startup costs typically range from $350,000 to $750,000 or more, depending on location, size, and equipment needs.
Yes. Many lenders understand the prevalence of student loans among dentists and focus more on income potential and practice cash flow.
Most lenders require at least financial projections and a clear overview of the practice model, even if a formal business plan is not mandatory.
Approval timelines vary by product but often range from a few weeks to a few months, especially for SBA loans.
Yes. Many financing structures include working capital to support staffing and patient acquisition efforts.
Interest and depreciation may be deductible, but dentists should consult a tax professional for personalized guidance.
Before applying, dentists should:
Clarify their practice goals and timeline
Estimate total startup or acquisition costs
Review personal and professional financials
Work with a lender experienced in dental practice financing
Partnering with a knowledgeable funding advisor can simplify the process and improve outcomes.
Opening a dental practice is both a professional achievement and a financial commitment. With the right dental practice financing, dentists can launch confidently, preserve cash flow, and position their practices for long-term growth. By understanding available options and working with experienced partners like Crestmont Capital, dentists can turn their vision of ownership into a sustainable, successful reality.
Disclaimer:
The information provided in this article is for general educational purposes only and is not financial, legal, or tax advice. Funding terms, qualifications, and product availability may vary and are subject to change without notice. Crestmont Capital does not guarantee approval, rates, or specific outcomes. For personalized information about your business funding options, contact our team directly.