Dental Equipment Financing: Compare the Best Options
Dental Equipment Financing: Compare the Best Options
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Bank of America - Health care practice loan
Best for Bank financing
Max loan amount
$5,000,000
Min. credit score
Undisclosed
Pros
- Can fund startup practices; interest-only and graduated payment structures available for startups.
- Fee discounts for veterans and endorsed medical group members.
- Dedicated project managers assigned to project-based loans.
Cons
- Loan terms, interest rates and qualification requirements not available online.
- Must call to learn more about financing options and how to apply.
- Cannot make loan payments online.
Bank of America - Health care practice loan
Best for Bank financing
Max loan amount
$5,000,000
Min. credit score
Undisclosed
Pros
- Can fund startup practices; interest-only and graduated payment structures available for startups.
- Fee discounts for veterans and endorsed medical group members.
- Dedicated project managers assigned to project-based loans.
Cons
- Loan terms, interest rates and qualification requirements not available online.
- Must call to learn more about financing options and how to apply.
- Cannot make loan payments online.
SBA 7(a) loan
Best for SBA financing
Max loan amount
$5,000,000
Min. credit score
650
Est. APR
10.50-14.00%
Pros
- Large borrowing maximums.
- Interest rates are capped.
- Long repayment terms available.
Cons
- Collateral is typically required.
- Longer processing times than online lenders.
SBA 7(a) loan
Best for SBA financing
Max loan amount
$5,000,000
Min. credit score
650
Est. APR
10.50-14.00%
Pros
- Large borrowing maximums.
- Interest rates are capped.
- Long repayment terms available.
Cons
- Collateral is typically required.
- Longer processing times than online lenders.
Max loan amount
$150,000
Min. credit score
600
Pros
- Funding in as little as 24 hours.
- Prepayment discounts available.
- Offers loans to startups and borrowers with bad credit.
- No collateral or down payment required.
Cons
- Charges a factor rate that makes it more difficult to compare costs with other lenders.
- Requires higher annual revenue than other online lenders.
- Misleading website marketing: National Funding offers only short-term loans and equipment financing/leasing.
- Charges an origination fee.
National Funding - Equipment financing
Best for Startups
Max loan amount
$150,000
Min. credit score
600
Pros
- Funding in as little as 24 hours.
- Prepayment discounts available.
- Offers loans to startups and borrowers with bad credit.
- No collateral or down payment required.
Cons
- Charges a factor rate that makes it more difficult to compare costs with other lenders.
- Requires higher annual revenue than other online lenders.
- Misleading website marketing: National Funding offers only short-term loans and equipment financing/leasing.
- Charges an origination fee.
Max loan amount
$250,000
Min. credit score
580
Est. APR
6.50-34.99%
Pros
- Can fund within one to two business days.
- No prepayment penalty.
- Flexible repayment options: monthly, quarterly, annually or semiannually.
Cons
- Charges an origination fee.
Triton Capital - Equipment financing
Best for Bad credit
Max loan amount
$250,000
Min. credit score
580
Est. APR
6.50-34.99%
Pros
- Can fund within one to two business days.
- No prepayment penalty.
- Flexible repayment options: monthly, quarterly, annually or semiannually.
Cons
- Charges an origination fee.
Max loan amount
$10,000,000
Min. credit score
620
Est. APR
5.99-18.00%
Pros
- Funding available within 48 hours.
- Competitive rates and repayment terms.
- Flexible payment options available, including deferment options for certain industries.
- No down payment required.
- Can be used to build business credit.
Cons
- Must have good credit to qualify for no prepayment penalties.
- Charges an origination fee.
JR Capital - Equipment financing
Best for Large loan amounts
Max loan amount
$10,000,000
Min. credit score
620
Est. APR
5.99-18.00%
Pros
- Funding available within 48 hours.
- Competitive rates and repayment terms.
- Flexible payment options available, including deferment options for certain industries.
- No down payment required.
- Can be used to build business credit.
Cons
- Must have good credit to qualify for no prepayment penalties.
- Charges an origination fee.
Balboa Capital - Equipment financing
Best for Fast funding
Max loan amount
$500,000
Min. credit score
620
Pros
- Multiple financing options available.
- Fast funding and simple application process.
- Accepts borrowers with fair credit.
Cons
- Lack of pricing information on website.
Balboa Capital - Equipment financing
Best for Fast funding
Max loan amount
$500,000
Min. credit score
620
Pros
- Multiple financing options available.
- Fast funding and simple application process.
- Accepts borrowers with fair credit.
Cons
- Lack of pricing information on website.
What is a dental equipment loan?
A dental equipment loan can be used to fund the purchase of specialized equipment needed in the operation of a dental practice. New equipment may be necessary when you open a practice, expand an existing one or buy a practice that has outdated equipment.
Dental equipment financing may be used to purchase:
- Dental patient chairs.
- X-ray imaging equipment.
- Sterilization tools.
- Air compressors.
- Nitrous oxide systems.
- Exam lighting.
- Hygiene tools.
- Storage and cabinets.
- Dental software.
How does dental equipment financing work?
Dental equipment financing typically functions like a business term loan — in which you borrow funds and pay them back over time, with interest. You can get an equipment loan that's up to 100% of the value of the equipment you’re looking to purchase — depending on your lender and qualifications. Some equipment lenders may also finance soft costs, such as delivery, installation and warranties.
Repayment terms may range from 12 to 60 months, or longer, but don’t usually exceed the expected lifespan of the equipment you purchase.
Dental equipment financing vs. leasing
Some lenders may offer equipment leasing as an alternative (or in addition to) equipment loans. Equipment leasing can be described as an agreement between the business owner and the equipment owner that allows you to use it for a certain period of time at a set cost. At the end of the lease, you return the equipment. In some cases, you may also have the option to renew the lease or buy the equipment.
Leasing your dental equipment can help you lower monthly payments. It can also be a good option if the equipment you need will become less useful as it ages. On the other hand, if you plan to use the equipment regularly and over a long period of time, equipment financing may be a better option.
Where to get dental equipment financing
Dental equipment financing is available from banks, SBA lenders and online lenders. Some equipment vendors also offer their own in-house financing solutions.The best option for your business is typically the one you can qualify for with the lowest rates and most competitive terms.
Banks
National and community banks — such as Bank of America, BMO Harris and Huntington Bank — offer dental equipment financing. And even if a bank doesn’t specifically advertise for dental business loans, it might still offer equipment financing that you can use to purchase equipment for your practice.
Bank business loans typically have the lowest interest rates and most competitive repayment terms. However, to qualify, you’ll likely need strong credit, good finances and a few years in business.
If you think you might be able to qualify for a bank loan, you should contact any banks with which you have an existing relationship, as it may help you access the financing you need.
SBA lenders
SBA loans are issued by participating lenders, like banks and credit unions, and partially guaranteed by the U.S. Small Business Administration. SBA loans have long repayment terms, competitive interest rates and can be used for a variety of purposes — including purchasing dental equipment.
The most popular type of SBA loan — the SBA 7(a) loan, for example — offers repayment terms up to 10 years for equipment and interest rates that range from
10.5
% to 14
%.Although SBA loans can be slightly easier to get than bank loans, you’ll still need strong credentials to qualify. You’ll usually need good credit and finances, as well as a few years in business.
» MORE: How to qualify for an SBA loan
Online lenders
If you can't qualify for a bank or SBA loan, or you need faster financing, a dental equipment loan from an online lender may be a good option.
Online lenders generally have more flexible requirements and some even work with startups or businesses with low credit scores. Online lenders also tend to have streamlined application processes and may be able to fund loans within 24 hours.
As a result, however, these lenders often charge higher interest rates and offer shorter repayment terms.
Equipment vendors
With vendor financing, a vendor lends you money to buy equipment from it directly. This helps you simplify the borrowing process by cutting out the go-between (i.e., a traditional lender).
If you know which equipment vendor you’re going to work with, you might check to see if it offers its own funding.
Vendor financing might be a good option for borrowers who can’t qualify for other loans, as well as those who have an established relationship with a specific vendor. However, like online loans, vendor financing can be more expensive than traditional business loan options.
🤓 Nerdy Tip
Need financing for other use cases? Medical business loans can be used for working capital, expansion and renovations, among other purposes. Compare the best medical practice loans here.How to get dental equipment financing
1. Determine what your business needs
Identify the type of equipment you want to buy and how much it’s going to cost. Keep in mind that you may have to pay soft costs, such as warranties, installation or delivery, when making your purchase.
You should also consider how much of a down payment you may be able to provide on your loan. Some lenders may require a minimum down payment of 10% of the loan amount. Even if it’s not required, providing a down payment can help you qualify for the most competitive rates and terms.
Use our equipment loan calculator to help estimate your payments and total cost.
2. Evaluate your business credentials
Most companies will use your credit score, time in business and annual revenue to underwrite your application, although specific criteria vary. Lenders will also consider the value of the equipment you’re looking to purchase.
In general, stronger qualifications will help you access lower business loan rates and more financing options. Even borrowers who face credit challenges may be able to get funding through lenders who offer equipment financing for bad credit.
3. Find the equipment you want to purchase
Most lenders will ask you to provide an equipment quote as part of the loan application process. You’ll want to research different options to find out where you can get the best price for your dental equipment.
4. Compare equipment lenders
As you explore different small-business lenders, you should think about their available loan options, borrowing costs and repayment terms. You’ll also want to consider a lender’s funding time, application process and company reputation.
It may be helpful to read online reviews of lenders — and/or consult with other dentists who have purchased equipment in the past.
5. Complete your loan application
Application processes and funding times vary based on your lender. Banks and SBA lenders typically have lengthy, detailed business loan applications and are slow to fund. Online lenders, on the other hand, tend to have streamlined processes and offer quick access to capital.
Nevertheless, you’ll generally be required to provide:
- Basic information about you and your business.
- Personal and business tax returns.
- Personal and business bank statements.
- Business financial statements.
- Information on the equipment you want to buy.
After you’ve been approved, you’ll receive a business loan agreement to sign. You should review this document thoroughly and if you have any questions, reach out to your lender for more information.
Last updated on August 19, 2024
Methodology
NerdWallet’s review process evaluates and rates small-business loan products from traditional banks and online lenders. We collect over 30 data points on each lender using company websites and public documents. We may also go through a lender’s initial application flow and reach out to company representatives. NerdWallet writers and editors conduct a full fact check and update annually, but also make updates throughout the year as necessary.
Our star ratings award points to lenders that offer small-business friendly features, including:
- Transparency of rates and terms.
- Flexible payment options
- Fast funding times.
- Accessible customer service.
- Reporting of payments to business credit bureaus.
- Responsible lending practices.
We weigh these factors based on our assessment of which are the most important to small-business owners and how meaningfully they impact borrowers’ experiences.
NerdWallet does not receive compensation for our star ratings. Read more about our ratings methodology for small-business loans and our editorial guidelines.
Wondering if you qualify?
It’s possible to get a business loan even if you have bad credit. Bad-credit business loans are available from alternative sources, like online or nonprofit lenders.
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