What Are Practice Loans in Dentistry?
Practice Loans are financing arrangements that provide dental practice owners with borrowed capital to fund growth, acquisitions, refurbishments, or equipment purchases.
They are typically offered by high-street banks, specialist dental lenders, or alternative finance providers, with repayment terms ranging from 3–15 years depending on loan type.
Why Do Practice Loans Matter for Dental Practice Owners?
Dentistry is capital-intensive — from buying a practice to investing in CBCT scanners, surgeries, or digital systems. Few owners can fund this growth purely from retained profit.
- ✅ The right practice loan accelerates growth and increases long-term value.
- ⚠️ The wrong loan (too expensive or poorly structured) can create debt stress, weaken cash flow, and reduce exit value.
Example:
- £500,000 practice acquisition loan over 10 years
- Monthly repayment ~£5,500
- If the practice generates £15,000+ additional monthly EBITDA, the loan is a smart investment.
What Types of Practice Loans Exist?
| Loan Type | Purpose |
| Acquisition Loans | Buy an existing dental practice |
| Refurbishment Loans | Fund expansions, new surgeries, or redesigns |
| Equipment Loans | Purchase CBCT, digital scanners, or chairs |
| Working Capital Loans | Cover cash flow gaps, e.g., during growth |
| Partner Buy-In Loans | Finance new partners joining the practice |
How Does DentPulse Help Manage Practice Loans?
| Feature | Function |
| Loan Register | Tracks balances, repayments, and interest costs |
| CFFP™ Integration | Models loan repayments into 13-week cash flow forecasts |
| Profit-to-Pocket™ Overlay | Shows impact of debt servicing on safe take-home |
| OWS™ (Owner Wealth Score) | Weighs debt load against long-term wealth outcomes |
| Scenario Planner | Tests affordability before taking on new loans |
DentPulse ensures practice loans are tools for growth, not anchors on cash flow.
DentPulse Tip™
“A loan should buy you time and value — not stress.
Always model repayments against cash flow before signing.”
Related Glossary Terms
- Financing Cash Flow – tracks inflows/outflows from loans and repayments
- Working Capital – liquidity buffer separate from debt finance
- CFFP™ (Cash Flow Future Pairing) – protects today’s cash from future loan outflows
- Profit-to-Pocket™ – links loan repayments to safe drawings
- Practice Valuation Drivers – debt structure affects exit value
Glossary Summary Table
| Term | Meaning |
| Practice Loans | Borrowed capital used to fund acquisitions, equipment, or growth |
| Purpose | Accelerate expansion without draining reserves |
| DentPulse Advantage | Real-time loan register + repayment forecasting + impact on owner wealth |
