Do you feel that it’s time to start your own practice? Are you thinking of expanding your existing dental office? There are several budding dentists, like you, ready to kick off their practices or expand their current places. However, as with most businesses in the world, lack of capital can be a stumbling block. Dental practice loans offer assistance to these sets of dentists. You can finance your office expansion, start your office or just buy new equipment for your office with capital gotten through a loan. Loans can help you achieve your dental business objectives, and give room for flexible payback conditions. There are different types of loans you can take to finance your practice. Here are 4 types of business loans you can choose.
1. Line of Credit Loan
One of the most common types of loans available for dentists is the line of credit loan. It’s an ideal loan for dental practices because it offers a source of constant cash to boost cash flow. Although this type of loan is not usually used to make large purchases, it’s flexible enough to ensure your practice keeps running. With a line of credit, you have a defined sum of money you can borrow from and payback as you like, from a financial institution. This type of loan is paid off with interest, depending on your agreement with the financial institution. If you want to know more about a line of credit loan, consult a dental CPA in San Diego.
2. Installment Loans
Another popular loan type, you can borrow money for capital and payback through monthly recurring payments. Installment loans are given with expected payback interest rates. Once you accept the credit, you’ll be obligated to make systematic payments after a period to cover the loan and interest. You can work with a dental CPA San Diego, to determine what terms of your installment loan is best for you.
3. Secured Loans
This type of loan is best for dentists that already have an existing practice and looking to expand. It’s also great for new practice owners with some sort of valuable property or business. Secured loans are given out in exchange for collaterals. For instance, if you have an existing practice, you can use it as a form of insurance to get a loan for expansion. If you default on repaying a secured loan, you’ll risk losing your collateral. Secured loans usually come with a meager interest rate.
4. Unsecured Loans
In direct contrast to secured loans, you don’t need any form of collateral to secure an unsecured loan. This type of loan is given based on the lender’s discretion, your business reputation, and maybe your credit score. With the lesser risks of unsecured loans come higher interest rates.
Get Advice on the Best Loan for Your Practice Financing
Regardless of the reason for taking a business loan for your practice, you’ll need to take the best loan for you and your business. To get the best advice on which loan is best for you, contact a dental CPA in San Diego. They are experienced and can give you excellent financial information.