Starting or expanding a dental/orthodontic practice can feel overwhelming, especially when it comes to securing the right financing. Whether you’re fresh out of residency or a seasoned dentist or orthodontist looking to grow, navigating loans, interest rates, and cash flow can be a complex task. In this episode of the GrowOrtho Podcast, we’ll break down key financing strategies, common pitfalls to avoid, and practical steps to ensure long-term success.
We’ll cover everything from startups to expansions and even refinancing options, so you can unlock your practice’s full potential.
Introduction to Dental/Orthodontic Practice Financing
The road to opening a successful dental/orthodontic practice often starts with financing. While securing loans for equipment, marketing, and working capital might seem like a straightforward process, the details matter. The right loan can set you up for success, while an ill-advised financial decision could restrict your growth potential.
For many dentists and orthodontists, the first question is whether to go with traditional banks or specialized lenders. Each path has its pros and cons, and understanding these is crucial for making the best decision.
The Difference Between Traditional and Fintech Lenders
One of the first choices you’ll face is deciding between traditional banks like Wells Fargo or Bank of America and newer fintech lenders like Provide. Traditional banks have long-established lending practices, but they often come with slower approval times, more rigid structures, and less flexibility.
Fintech lenders, on the other hand, offer speed and adaptability. As Jon Shaw, a healthcare financing expert from Provide, explains in this episode, “Fintech companies have a streamlined process, offering approval times of just four to five days compared to the weeks or months it may take with traditional banks.”
This agility is invaluable, especially when every day of delay could cost you thousands in lost revenue. Fintech lenders also offer tailored solutions based on individual needs, making them more suited to healthcare professionals.
Common Pitfalls For First-Time Practice Owners
The excitement of starting your own dental/orthodontic practice can sometimes lead to financial missteps. Here are three common pitfalls to avoid:
1. Underestimating Start-Up Costs
Many first-time owners are surprised by how quickly costs add up. From building out your office space to purchasing equipment, these expenses can easily exceed initial estimates. Shaw emphasizes, “In today’s market, a typical startup loan is around $800,000. However, many dentists and orthodontists come in expecting to need far less, which leads to financial strain down the road.”
2. Lack Of Cash Reserves
Building a practice takes time. Without proper cash reserves, even the smallest hiccup can derail your plans. Having enough working capital for marketing and hiring the right team is essential. As Shaw notes in the episode, “It’s common to see doctors run out of cash too early because they didn’t plan for a proper runway for marketing and operations.”
3. Taking On Too Much Debt Too Soon
It’s tempting to purchase all the latest equipment and build a state-of-the-art facility. However, overextending yourself financially can backfire. Consider starting with fewer operatories or scaling up gradually. Fintech lenders like Provide often offer flexibility to revisit financing later if your practice grows faster than expected.
Expansion Strategies: Multi-Practice Ownership
Once your practice is thriving, you may consider expanding to a second or third location. While the idea of multi-practice ownership is appealing, it’s not without challenges. Expansion requires strategic planning, especially when it comes to financing.
One of the biggest hurdles is securing financing for ground-up construction or pu...

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