How do I finance buying a dental practice?

Practice-acquisition loans — often SBA 7(a) or specialty practice lenders — are the standard path. They fund the purchase price plus often working capital and transition costs, with terms up to 10 years (25 if real estate is included). Lenders view established dental practices favorably because of their stable, recurring patient revenue, so financing up to 90–100% of the purchase is common for qualified buyers.

How much can a dentist borrow to start or buy a practice?

Acquisitions commonly run several hundred thousand to a few million depending on the practice; startups (de novo) typically need $350,000–$600,000+ for build-out, equipment (chairs, imaging, sterilization), and working capital. SBA 7(a) funds up to $5 million, and many lenders specialize in dental specifically.

What do lenders look at for dental practice loans?

Your dental license and clinical experience, personal credit, and — for an acquisition — the practice's collections, patient base, and cash flow. Dentists are considered low-risk borrowers thanks to high earning stability, so strong-credit buyers often qualify with little or no money down on an acquisition.

Should I use an SBA loan or a specialty dental lender?

Both work. SBA 7(a) offers long terms and can require less down, but takes longer to close. Specialty dental/practice lenders move faster and understand the model deeply, sometimes offering 100% financing on acquisitions. Compare total cost and speed; many dentists use SBA for larger deals and specialty lenders for speed.

Dental Practice Financing: Buy, Start, or Expand a Practice

Financing options for buying, starting, or expanding a dental practice — practice-acquisition loans, equipment, and working capital — and what lenders want from dentists.

Dental practice financing funds buying, starting, or expanding a practice — through practice-acquisition loans, equipment financing, and working capital. Because dental practices generate stable, recurring patient revenue and dentists are low-risk borrowers, financing up to 90–100% of an acquisition is common for qualified buyers, via SBA 7(a) loans (up to $5M, long terms) or specialty dental lenders that move faster.

Whether you're buying an established practice, opening a de novo office, or adding chairs and operatories, the capital need is large and the right structure matters. The good news: lenders love dentists — high, stable earnings and recurring revenue make practices one of the most financeable small businesses there is.

The short version

Acquisition loans (SBA 7(a) or specialty dental lenders) are the main path — often 90–100% financing for strong-credit buyers because practices have stable recurring revenue. Finance the big assets (the practice, the equipment, the build-out) over long terms; keep working capital for the transition. SBA = lower down / longer close; specialty lenders = speed.

Three scenarios, three financing shapes

Dental practice financing by goal
Goal	Primary financing	Notes
Buy an existing practice	Acquisition loan (SBA 7(a) or specialty)	Often 90–100% financed; recurring revenue de-risks it
Start a de novo practice	Startup loan + equipment financing	$350k–$600k+; longer ramp to profitability
Expand / add operatories	Equipment financing + working capital	Match the term to the asset life
Buy the building too	SBA 504 or 7(a) w/ real estate	Up to 25-year term on the real estate portion

Why dentists are easy to finance

Lenders underwrite risk, and dental practices score well: patients return on recurring schedules, collections are predictable, and dentists have high, stable incomes. That's why acquisition lenders routinely offer 90–100% financing to qualified buyers — the cash flow of an established practice reliably services the debt. An SBA 7(a) loan is a common vehicle; specialty practice lenders compete hard for dental deals too.

What lenders want to see

License and experience

Your dental license and clinical/production track record. New grads can still qualify, especially for acquisitions of cash-flowing practices.

Personal credit and finances

Strong personal credit is the biggest lever on rate and down payment.

The practice's numbers (for acquisitions)

Collections, patient counts, payer mix, and cash flow. The seller's financials carry the underwriting.

A working-capital cushion

Even a profitable practice needs runway through the ownership transition — build it into the request.

Match the loan term to what you're buying

Finance equipment over its useful life, the practice over a long acquisition term, and real estate over 25 years — don't put a long-lived asset on a short loan, and don't drain cash buying equipment outright. Structure preserves the working capital that keeps the practice running.

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The bottom line

Dental practices are among the most financeable businesses there are — stable, recurring revenue and low-risk borrowers mean acquisitions are often 90–100% financed. Pick the structure that fits your goal (acquisition, de novo, or expansion), weigh an SBA loan's longer terms against a specialty lender's speed, and finance the big assets over their useful life so your cash stays free to run the practice.