JS Medical & Dental Finance helps dental professionals compare commercial lending options and structure finance around the purpose of the loan, the strength of the practice and their long-term business goals.
Dental Practice Loans Explained
Depending on your plans, funding may be used to:
- Purchase an existing dental practice
- Acquire a share in a dental partnership
- Buy commercial premises
- Establish or expand a clinic
- Complete a dental practice fit-out
- Purchase dental chairs, imaging systems and other equipment
- Refinance existing business debt
- Support working capital during growth
Different purposes may require different lending facilities. A loan used to buy commercial property may be structured differently from finance for goodwill, equipment or short-term cash flow. Separating these costs can make the finance easier to manage and help ensure that each facility suits the asset or expense being funded.
The Australian Government’s business.gov.au funding guide explains that debt finance involves borrowing money from a lender, while equity finance involves giving up part ownership of the business. Understanding the available funding options can help you make a more informed decision before committing to a loan.
When Dentists May Need Commercial Finance
Purchasing an Existing Dental Practice
Buying an established clinic may involve funding the practice’s goodwill, patient base, equipment and other business assets. Lenders may review the practice’s revenue, expenses, profitability and cash flow to assess whether the business can support the proposed repayments.
Before signing a purchase agreement, it is important to review the clinic’s financial records, business operations, assets, liabilities and legal documents with the appropriate advisers. The Australian Government’s guide to buying an existing business provides a useful overview of research, valuation and due diligence.
Buying Dental Practice Premises
Consider the property’s valuation, permitted use, location, access, parking and capacity for future growth. The total budget should also allow for purchase costs and any separate work required to prepare the premises for clinical use.
Establishing or Expanding a Clinic
Property, construction, fit-out and equipment costs may be funded through separate facilities or a combined structure, depending on the lender and the project.
Purchasing Dental Equipment
The repayment term should be considered alongside the equipment’s expected working life, maintenance costs and likely contribution to practice revenue.
Managing Working Capital
Working capital should be based on a realistic budget. Borrowing too little may leave the practice under pressure, while borrowing more than necessary can increase interest costs and repayments.
Types of Commercial Finance for Dentists
Commercial loans for dentists may be structured in different ways depending on what is being funded.
- Practice purchase finance: For acquiring an established clinic, its goodwill, business assets or a partnership share.
- Commercial property finance: For purchasing owner-occupied dental premises, a suitable site for a new clinic or commercial investment property.
- Equipment finance: For clinical equipment, imaging technology, sterilisation systems, furniture and other business assets.
- Fit-out finance: For treatment rooms, plumbing, cabinetry, electrical work, flooring, reception areas and other internal clinic works.
- Working capital facilities: For approved short-term operating expenses and cash-flow needs.
- Refinancing: For reviewing or restructuring existing commercial debt when the practice or its financial needs have changed.
Each option serves a different purpose. Choosing a suitable facility starts with identifying exactly what the money will be used for and how that investment is expected to support the practice.
Choosing the Right Dental Commercial Loan
When comparing dental practice loans, consider the full structure rather than focusing only on the interest rate. A facility should suit the purpose of the finance, the expected life of the asset and the cash flow available to meet repayments.
Key factors include:
What You Are Financing: The facility should suit the property, practice, equipment or business expense being funded.
How Repayments Will Work: Options may include principal-and-interest repayments, interest-only periods, fixed rates, variable rates or a split structure. Availability depends on the lender and the application.
Length of the Finance Agreement: A longer term may reduce regular repayments but increase the total interest paid. A shorter term may reduce total interest but place more pressure on cash flow.
Assets Used to Support the Loan: A lender may take security over commercial property, residential property, business assets or another acceptable form of security.
Who Will Own the Practice or Property: A practice or property may be acquired by an individual, company, trust, partnership or SMSF. Independent legal, tax and financial advice should be obtained before choosing a structure.
Plans for Further Investment: Consider whether you may need to buy equipment, renovate, add chairs or open another location after the initial transaction.
The Full Cost of Borrowing: Review application fees, valuation costs, ongoing fees, repayment conditions and loan flexibility together with the interest rate.
The lowest advertised rate may not provide the most suitable outcome if the loan has restrictive conditions or does not support the practice’s future plans.
What Lenders May Review for Dental Practice Loans
- The dentist’s qualifications and professional experience
- Personal income and existing liabilities
- Practice revenue, expenses and profitability
- Business and personal tax returns
- Cash-flow forecasts for a new or expanding clinic
- The purpose and amount of the loan
- The purchase price and financial performance of an acquired practice
- The value, location and type of commercial property
- The proposed borrowing entity
- Available deposit funds or equity
- The security offered for the loan
Some lenders have policies designed for healthcare professionals. However, approval, borrowing capacity and security requirements still depend on the applicant and the proposed transaction.
Preparing Before You Apply
Clarify Your Funding Requirements
Prepare a detailed cost breakdown instead of relying on a broad estimate. Include purchase costs, planned improvements and a reasonable allowance for unexpected expenses.
Review Your Financial Position
Understand your income, expenses, debts, assets and existing business commitments. The business.gov.au business loan guide recommends reviewing income, expenses, debts and cash flow before applying.
Documents for Dental Practice Loans
- Identification documents
- Personal and business tax returns
- Business activity statements
- Practice financial statements
- Bank and existing loan statements
- A business plan
- Cash-flow forecasts
- A property contract or lease
- Equipment and fit-out quotations
- Details of the proposed ownership structure
Having complete and accurate documents ready can reduce avoidable delays and make the purpose of the application easier to understand.
Prepare Realistic Forecasts
Complete Appropriate Checks
If you are buying an existing practice, review its financial records, legal documents, assets and liabilities with your accountant and solicitor.
If second-hand equipment or business assets are included, a search of the Personal Property Securities Register may help identify registered security interests. The PPSR is not a register of ownership, so professional advice may still be needed.
Planning for Long-Term Dental Practice Growth
Finance should continue to support your practice as it grows and changes. Regularly reviewing your loan structure can help you respond to new opportunities, shifts in cash flow and changes to the way the practice operates or is owned.
Structure Finance Around Your Next Move
Consider how the funding will help your practice progress. It may support the purchase of a clinic or commercial property, the introduction of new services, additional treatment rooms or expansion into another location.
Balance Repayments With Cash Flow
A growing practice still needs funds for wages, laboratory accounts, supplies, maintenance and everyday expenses. Repayments should leave enough room to manage the clinic and respond to unexpected costs.
Review Finance as the Practice Changes
A facility that worked at the time of purchase may not remain suitable after the practice expands or its financial position improves. Existing loans may be reviewed or restructured where another arrangement is better suited to the practice.
Why Work With a Dental Finance Broker?
JS Medical & Dental Finance can help you:
- Clarify the purpose and amount of finance required
- Compare suitable loan structures from available lenders
- Review rates, fees, security and repayment options
- Prepare and present the application
- Communicate with lenders during assessment
- Work alongside your accountant, solicitor and other advisers
A broker does not replace legal, accounting, tax or financial advice. The broker’s role is to guide you through the lending process and help you understand the finance options available.
Mistakes to Avoid With Dental Practice Loans
Common mistakes can increase costs, restrict future options or place unnecessary pressure on the clinic.
Combining every cost without reviewing the structure: Property, goodwill, fit-out, equipment and working capital may be better suited to different facilities.
Focusing only on the interest rate: Fees, security requirements, repayment terms and flexibility can affect the overall suitability of a loan.
Underestimating establishment costs: Specialised clinic works, professional fees, equipment installation and early operating expenses should be included in the budget.
Using all available cash for the purchase: Keeping a suitable cash buffer may help the practice manage wages, supplies and unexpected costs.
Relying on optimistic revenue forecasts: New patient growth and additional services may take time to produce consistent income.
Ignoring future borrowing plans: The structure chosen today may affect your ability to finance future equipment, renovations or another location.
Rushing into an application: Review the transaction, documents and loan conditions before committing to finance.
Frequently Asked Questions About Dental Practice Loans
What Is a Dental Practice Loan?
Can I Get Finance to Buy an Existing Dental Practice?
Can I Use Commercial Finance to Buy Dental Premises?
Can Equipment and Fit-Out Costs Be Included?
How Much Can a Dentist Borrow?
Can Dental Premises Be Purchased Through an SMSF?
An SMSF may be able to acquire eligible commercial property in suitable circumstances. Review the Australian Taxation Office’s SMSF guidance and obtain independent legal, tax and financial advice before proceeding.
Take the Next Step Towards Practice Growth
JS Medical & Dental Finance helps dental professionals explore commercial lending options and identify structures suited to their circumstances. Speak with our team to discuss your plans and the finance options that may be available.
Move Forward With the Right Dental Finance
Whether you are purchasing a dental practice, securing commercial premises or preparing for further expansion, dental practice loans can help provide the funding needed to support your plans. Choosing a structure that suits your cash flow, current commitments and future direction can make it easier to manage growth with greater confidence.
Speak with the team at JS Medical & Dental Finance to discuss your next step. We help dental professionals explore commercial lending options and identify finance solutions that suit their practice goals and circumstances.
Testimonials
What our clients say
As a dentist and the proud owner of Brisbane Smiles. Over the past decade, I’ve had the privilege of working closely with Ian Walsh at JS Medical and Dental Finance, and I can confidently say he has been instrumental in our journey. Ian has supported us through every stage of growth—helping secure finance for practice goodwill, equipment, fitout, commercial property, our home loan, and even vehicle finance.
I’m a Brisbane based general dentist and dental clinic owner. I was put into contact with Ian Walsh from JSMDF. Within a few months, Ian successfully got me approved for a mortgage loan. He made the entire process seamless, explained all the options clearly, and always went above and beyond to secure the best rates and terms. I would highly recommend Ian to friends, family and colleagues without hesitation.
I have had the privilege of working with Jason for over a decade, and I hold him and his team in the highest regard for their expertise and professionalism. Throughout our working relationship, Jason has demonstrated exceptional knowledge in structuring and securing financing for a diverse range of projects, including vehicle and residential loans, dental practice and equipment acquisitions, greenfield developments, and large-scale commercial construction. I confidently endorse Jason and his team to professionals and clients seeking reliable, industry-leading financial service.
I have multiple loans across business, personal and investment properties. I have found Js Medical and Dental Finance team extremely professional to deal with. Especially, their understanding of complex financial structures and also to relay it to us in a way I can understand is commendable. We are currently going through the process of refinancing with him and it’s been a smooth process so far. I can recommend their services without hesitation.
Js Medical and Dental Finance has been looking after our financial needs for years. Jason and his team offers unparalleled service and knowledge and backs it up with the highest degree of personal integrity.
Ian has been our personal banker and professional banking liaison for almost a decade, during which Ian has assisted with and coordinated all of our commercial lending needs. Most recently, Ian stepped in to provide support during the restructuring of our existing (personal) loans. Ian is always friendly and no request ever seems too much. Ian consistently works hard to create positive and professional relationships with his clients. We are incredibly grateful to Ian and his ongoing support and we would not hesitate to recommend his services.
I have had the pleasure of being a client of Jason Savage and JS Medical & Dental Finance for several years now and can highly recommend them. JSMDF have been so easy to deal with and have always looked after my financing needs when required. Whether it be for general advice, or securing the best financial terms for each specific scenario, JSMDF have been there every step of the way. I highly recommend JSMDF - Jason has made a usually stressful part of business hassle free.
I’ve been working with Jason Savage for close to a decade, and in that time he’s been an incredible support for both my business and personal finance needs. Jason is professional and reliable, and always goes above and beyond to make things smooth and stress-free. What I value most is the trust and confidence I have knowing he genuinely has my best interests at heart. Highly recommended without hesitation.
