Most dentists finance nearly the entire purchase of a practice. Understanding how lenders think — and preparing accordingly — can meaningfully improve your terms and your odds.
How do dental practice loans work?
Specialty lenders and some banks offer acquisition loans designed for dentists, often financing most or all of the purchase price over a multi-year term. Because dentistry is seen as a stable profession, terms can be favorable relative to other small-business lending — but they still depend on the practice and on you.
What do lenders look at?
- The practice’s historical cash flow and its ability to service the loan.
- Your personal credit, existing debt (including student loans), and liquidity.
- Your production history and readiness to own.
- The purchase structure and any real estate involved.
How can you get better terms?
- Assemble clean personal financials and tax returns in advance.
- Understand the practice’s numbers so you can answer questions credibly.
- Come with a clear plan for the transition and early operations.
- Compare multiple lenders on rate, term, and structure — not rate alone.
Frequently asked questions
Many dentists finance most or all of the acquisition, sometimes including working capital. Terms depend on the practice’s cash flow and your financial picture.
Not necessarily. Lenders consider your overall obligations. Student debt is normal for dentists; how you manage it and your cash flow matter more than the balance alone.
Founder & Financial Planner · Investment Adviser Representative · Series 63 & 65
Ian McGinnis is the founder of Dental Wealth Partners and a fee-only financial planner dedicated to dentists. As an investment adviser representative (Series 63 and 65), he built the firm to give dentists coordinated, fiduciary advice across their practice, taxes, investments, retirement plans, and long-term goals — the whole picture in one strategy. A graduate of Belhaven University, Ian previously worked at Davis Private Wealth, MML Investors Services, and Northwestern Mutual, and is based in the Jackson, Mississippi area. He is the author of The Wealthy Dentist and hosts the Smiles & Cents podcast.
Keep reading
- How to buy a dental practice: a financial due-diligence guideThe financial due diligence every dentist should do before buying a practice — testing the price, modeling cash flow, and preparing for lenders.
- How much does it cost to buy a dental practice?What dental practices sell for, how prices are calculated, and how to tell whether an asking price is reasonable for your situation.
- Should dentists refinance their student loans? A decision guideWhen refinancing dental school loans saves money — and when it costs you valuable federal options. A step-by-step decision guide for dentists.