All About Dental Equipment Financing

In the process of buying a dental practice, you’ll need to have financing lined up for the practice purchase itself. And depending on how outdated that practice’s equipment is, you might also need dental equipment financing

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What Is Dental Equipment Financing?

Dental equipment financing refers to loans that help dentists pay for expensive equipment like dental chairs, x-ray machines, hand tools, and more.

Dental equipment loans allow dentists to finance equipment they need without tapping into cash reserves or taking on large lump sum expenses.

Types of Dental Equipment Financing Lenders

Need some new tech for your dental office but don’t have the cash upfront? Let’s take a stroll through the landscape of lenders that can help you secure the tools you need to keep those smiles shining.

We’re talking about finance programs that won’t just drain your bank account. No matter the type of financing you pick, remember the options are as diverse as your patients’ smiles. And if you need help with the decision, contact us and we’ll discuss your options with you.

Vendor and Supplier Financing

With vendor financing, the manufacturer or dealer becomes your lender. Here’s what to consider:

  • Comes directly from the equipment seller
  • Typically fast approval since they want to make the sale
  • Build ongoing relationship with vendor
  • Interest rates tend to be higher than other financing sources

Bank Loans

When it comes to the big guns like Bank of America or Wells Fargo, you get lower interest rates and stricter lending criteria. Your practice’s financial health needs to be on point.

Points to consider:

  • Typically offer the lowest interest rates
  • Strict eligibility requirements around credit score, time in business, annual revenue, and down payment
  • Longer application process than other options
  • Great choice if you have strong credentials

Small Business Administration Loans

Steer clear of Small Business Administration (SBA) loans. I never recommend them to my clients

Which Types of Dental Equipment Can I Finance?

Here are some equipment categories that can be purchased with financing:

  • Dental chairs: electric, hydraulic, and specialty chairs
  • Dental units: delivery systems, carts, stools, lights
  • Digital radiography: intraoral, panoramic, and cephalometric X-ray systems
  • 3D imaging: CBCT systems, intraoral scanners
  • CAD/CAM systems: mills, scanners, design software
  • Handpieces: high and low speed drills, scalers, electrosurgery units
  • Autoclaves and sterilization equipment: steam sterilizers, ultrasonic cleaners
  • Dental lasers: all tissue, hard tissue, and soft tissue lasers
  • Compressors: air compressors, vacuum systems
  • Dental cabinetry: cabinets, shelving, drawers
  • Dental office technology: computers, servers, networking

Dental chairs and delivery systems often represent the biggest equipment costs. But financing is available for the full range of clinical and office equipment needed to outfit a dental practice.

Loan Terms and Qualification Factors

These items  can be major purchases, and you probably have a lot of financing options to think about.

There are affordable loans for that new autoclave or imaging system, even if you have bad credit. Here are the critical aspects to look for in a loan:

  1. Loan amount
  2. Loan rate
  3. Repayment terms
  4. Qualification factors

Loan Amounts

Let’s start with loan amounts—you can typically borrow anywhere from $10,000 up to hundreds of thousands for equipment. The amount depends on the piece of equipment and how much it costs. Want to buy a high-tech CT scanner? Be ready for a bigger loan. Just need a new chair? A smaller loan should cover it.

Loan Rates

Loan rates vary widely based on your creditworthiness. With strong personal or business credit, you’ll qualify for a low rate. If your credit history is blemished, you’ll pay a lot more in interest. The range of available rates fluctuates with the larger economic landscape.

Repayment Terms

The repayment term is the length of time you take to repay the loan. It often matches up with the lifespan of the purchased equipment and technology. So, financing chairs for 5-10 years makes sense if you plan on using them for that long.

Qualification Factors

What goes into loan approval? The big factors are your credit score, the years the practice has been in business, its annual revenue, and what collateral you can put up. Hit those qualification factors strongly, and you’ll get the best loan offers. Things like a solid business credit card payment history definitely help too. There are even tax credits available that could lower your overall equipment costs.

Pros and Cons of Dental Equipment Financing

Wondering whether it’s a good idea to finance new equipment or get along with older stuff? Let’s look at the pros and cons of equipment financing.


  • Keep your cash flow intact: no need to break the bank with lump sum payments. 
  • Elevate your services to craft a top-tier patient experience that keeps patients coming back.
  • Tax perks. Turn that frown upside down when tax season rolls around. Interest on your loan? It might just be your golden ticket to deductions. 
  • Just like pumping iron at the gym builds your biceps, steady monthly payments build your business credit history. 


  • While instant gratification feels great, remember that financing isn’t free. Interest can really add up. Crunch those numbers and know what you’re really paying.
  • Rollercoaster cash flow: let’s face it; dental practices, like life, have ups and downs. Monthly loan duties can put the squeeze on when patient traffic slows. Brace yourself for those twists and turns.
  • Danger zone: life loves to throw curveballs, right? If those payments start to feel like a tightrope walk, default might be lurking around the corner. Keep your safety net strong.
  • Debt on display: your balance sheet is like a resume for your practice’s financial health. Equipment financing adds a new line—a debt line. Keep in mind how it might influence your financial future.

As you sip your coffee and mull over dental equipment financing, remember, this decision is all about your practice’s unique needs and dreams. It’s like picking the right tool for the job. 

And, if you need any help, we’re here to advise you on all aspects of practice acquisition and talk you through the pros and cons of each option.

How to Apply for Financing

Let’s talk shop about the financing process for dental equipment. Here’s what you’ll need to do:

  1. Determine needs
  2. Evaluate finances and credit
  3. Research options
  4. Gather documentation
  5. Apply

Determine Equipment Needs and Costs

Figure out what equipment you need and what it’ll cost. Think of it like planning your next adventure. Nail down those quotes and specs. This is your foundation—it’ll determine how much of a loan you’ll need.

Evaluate Business Finances and Credit

With the help of your accountant or financial advisor, check out your business’s revenue, expenses, credit score, how long you’ve been working, and if debts lurk in the background. This detective work tells you where you stand and what lenders will be looking for.

Research Lenders and Financing Options

Time to connect your dental dreams with the right lender. You’re on the lookout for lenders whose loan terms fit your needs. You need to find the puzzle piece that fits just right.

Gather Required Documents

You’ll need a bunch of paperwork to secure an equipment loan. Lucky for you, it’s the same set of docs you’ll already be pulling together to finance your practice acquisition!

Submit Loan Application

Fill out that application and submit it. Done.

Do You Need a Dental Practice Acquisition Quarterback?

Ready to stop dreaming and start owning your own practice? Contact our team to schedule a consultation today. We’ll ensure your finances are rock solid so you can acquire a dental practice with confidence.

We quarterback the entire purchase so your acquisition goes smoothly. Our start-to-finish guidance gets deals done on the best terms. With Dental Buyer Advocates in your corner for valuation, due diligence, financing, negotiations, and more, you can focus on patients and growth from day one. No hassles or surprises.

We offer comprehensive guidance through every step of the acquisition process. Our team of experienced consultants provides tailored advice on:

  • Initial practice search and identification
  • Due diligence and validation of financials
  • Practice valuation and pricing negotiation
  • Securing acquisition financing
  • Finalizing purchase contracts and paperwork
  • … and anything else you need throughout the acquisition process

Do you want to learn more about buying a dental practice? Check out our 27-step dental practice acquisition checklist.

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Buying a Practice Is a Big Decision

Brian Hanks helps dentists navigate the acquisition process, from due diligence through closing on a practice.

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Frequently Asked Questions on Dental Equipment Financing

How hard is it to get a loan for equipment?

It can be tough to get an equipment loan. Lenders will scrutinize your credit score, the financials of the practice, and a ton of other factors. But if you’ve got good credit and a strong business history, you shouldn’t have much trouble.

Can I get a business loan with a 500 credit score?

Getting approved for a business loan with a 500 credit score is hard, but it is possible in some cases. Here are a few key points:

  • Most conventional banks and SBA lenders require personal credit scores of 650+ to qualify for a small business loan. 500 is considered very poor credit.
  • Options may include alternative lenders that offer “bad credit business loans” but often at very high interest rates and unfavorable terms.
  • Having strong business financials, significant collateral, or a co-signer with better credit may help offset the poor personal score.
  • Expect to make a large down payment, perhaps 50% or more of the loan amount.
  • Online lenders may use alternative data for decisions beyond just the credit scores.
  • Improve your personal credit before applying by paying down debts, disputing errors on your credit reports, and not taking on new credit.
  • Building business credit by taking out and repaying small lines of credit can also demonstrate your reliability over time.
  • Be prepared to pay higher rates and fees compared to those with good credit. Weigh costs against benefits.

Boosting your personal and business credit should be a priority before pursuing significant financing.

What is a dental equipment financing calculator?

A dental equipment finance calculator serves as a tool to gauge potential loans and expenses related to financing dental equipment. This dental loan calculator permits the input of factors like loan magnitude, interest rate, and repayment span. It then furnishes insights into monthly outlays and the total financing expenditure.

What is a dental equipment leasing company?

A dental equipment leasing company facilitates financing or leasing arrangements for dental equipment. These entities help you obtain imperative dental apparatus through leasing. This approach helps with cost management and ensures access to current equipment resources.

As a business owner looking to finance new dental equipment, what are my options for obtaining capital loans or lines of credit without providing collateral?

Here are a few options to consider that do not require business collateral:

  • Unsecured business loans from alternative lenders. They offer business term loans and business lines of credit based on your business’s cash flow.
  • Business credit cards can provide revolving credit for purchases. Just be sure to pay off the balance monthly.
  • Crowdfunded funding circles and loans distributed across multiple investors. These personal loans and business loans offer competitive rates.

For the best terms, have a solid business plan that outlines your growth strategy and ability to repay. Check your personal and business credit to aim for minimum credit scores above 700.


Listen to this podcast to understand how to get the best rates and terms from banks.

Where are you Stuck?

Whether you’re trying to find a practice or have already closed on one, we provide expert guidance for every aspect of the deal. Click any of the links below to learn more.

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