Dental equipment financing can help you pay for the equipment and machinery you need for your practice, such as dental chairs, lighting and digital X-ray machines.
With a dedicated equipment loan, the equipment you purchase serves as collateral, making the funding easier to qualify for than some other small-business loans.
Below, compare some of the best options for dental equipment financing and learn more about how to get the right funding for your business.
How much do you need?
We’ll start with a brief questionnaire to better understand the unique needs of your business.
Once we uncover your personalized matches, our team will consult you on the process moving forward.
Here are 5 dental equipment financing
Lender | NerdWallet Rating | Max loan amount | Min. credit score | Next steps |
|---|---|---|---|---|
SBA 7(a) loan with Fundera by NerdWallet | Best for Government-guaranteed equipment financing | $5,000,000 | 650 | with Fundera by NerdWallet |
Funding Circle - Online term loan with Fundera by NerdWallet | 5.0/5 Best for Dental equipment loans for established businesses | $500,000 | 660 | with Fundera by NerdWallet |
Triton Capital - Equipment financing with Fundera by NerdWallet | 4.0/5 Best for Dental equipment financing for startups | $250,000 | 600 | with Fundera by NerdWallet |
Fora Financial - Online term loan with Fundera by NerdWallet | 4.5/5 Best for Dental equipment financing for bad credit | $1,400,000 | 500 | with Fundera by NerdWallet |
OnDeck - Online term loan with Fundera by NerdWallet | 5.0/5 Best for Short-term dental equipment loans | $250,000 | 625 | with Fundera by NerdWallet |
Here are 5 dental equipment financing
Best for Government-guaranteed equipment financing
Best for Dental equipment loans for established businesses
Best for Dental equipment financing for startups
Best for Dental equipment financing for bad credit
Best for Short-term dental equipment loans
Our pick for
Government-guaranteed equipment financing
SBA 7(a) loan
Max Loan Amount
$5,000,000
Min. credit score
650
Est. APR
10.00-12.50%
7(a) program participants include specialized lenders like Live Oak Bank and big-name traditional banks like Wells Fargo.
Lowest interest rate
Max loan
$5,000,000
Min. Credit score
650
Apr range
10.00-12.50%
Our pick for
Dental equipment loans for established businesses
Funding Circle - Online term loan
Max Loan Amount
$500,000
Min. credit score
660
Est. APR
5.99-16.49%
Funding Circle is an option for established businesses that are financing an expansion or refinancing debt.
May fund quickly
Max loan
$500,000
Min. Credit score
660
Apr range
5.99-16.49%
Our pick for
Dental equipment financing for startups
Triton Capital - Equipment financing
4.0
NerdWallet rating with Fundera by NerdWallet
Max Loan Amount
$250,000
Min. credit score
600
Est. APR
5.99-35.00%
Triton Capital offers fast equipment loans up to $250,000 for businesses in a range of industries.
4.0
NerdWallet rating Max loan
$250,000
Min. Credit score
600
Apr range
5.99-35.00%
with Fundera by NerdWallet
Our pick for
Dental equipment financing for bad credit
Fora Financial - Online term loan
Max Loan Amount
$1,400,000
Min. credit score
500
Fora Financial can be a good fit for borrowers who may fall short of qualifying for traditional bank financing or young but established small businesses looking for speedy financing.
Max loan
$1,400,000
Min. Credit score
500
Our pick for
Short-term dental equipment loans
OnDeck - Online term loan
Max Loan Amount
$250,000
Min. credit score
625
Est. APR
29.90-97.30%
OnDeck offers a fast term loan for small-business owners with less-than-stellar credit who want to expand.
May fund quickly
Max loan
$250,000
Min. Credit score
625
Apr range
29.90-97.30%
How Much Do You Need?
Dental equipment financing is a type of loan specifically designed for purchasing or upgrading machinery and supplies for your dental practice.
You can get an equipment loan that's up to 100% of the equipment value you’re looking to purchase — depending on your lender and qualifications — which you pay back over time, with interest. Some equipment lenders may also finance soft costs, such as delivery, installation and warranties.
With one of these loans you can get equipment such as:
- Dental patient chairs.
- X-ray imaging equipment.
- Sterilization tools.
- Air compressors.
- Nitrous oxide systems.
- Exam lighting.
- Hygiene tools.
- Storage and cabinets.
- Dental software.
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.
Bank loans
National and community banks — such as Bank of America, BMO Harris and Huntington — 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 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 loans
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
% to 12.5
%.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 loans
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 bad credit. 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.
Vendor financing
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 offer 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.
Some lenders may offer equipment leasing as an alternative (or in addition to) equipment loans. With equipment leasing, you rent equipment from a vendor or lender. At the end of the lease, you have the option to return the equipment, 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.
1. Determine what your business needs
Identify the type of equipment you want to buy and how much it’s going to 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.
3. Research equipment lenders
As you compare different 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.
4. Complete your loan application
Application processes and funding times will 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 a streamlined process 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.
The best business loan is generally the one with the lowest rates and most ideal terms. But other factors — like time to fund and your business’s qualifications — can help determine which option you should choose. NerdWallet recommends comparing small-business loans to find the right fit for your business.
Last updated on January 30, 2023