Dental Details: Ways to Finance Your Clinic
It is an exciting time when a dentist is looking to start a new practice. The chance to help people improve their dental health is a very rewarding opportunity.
However, it does take a lot of money to make this dream come true.
Things like the building to house the practice, and dental equipment like medical micromachining parts do not come cheap.
Most dentists need to get the help of some outside financing to open up their practices.
You can do this through a broker like Dental Practice Guide who can help you every step of the way and make the process as simple as possible.
If you are looking to start your own dental practice, here are some tips you can use to make it easier to gain financing.
Sell Things You Don’t Need
If you look around your home, you will surely find many things that you don’t really need.
You may have a car sitting around that you rarely drive. You can sell it off for a nice chunk of change that you can invest in your business. You may have some jewelry or antiques that you could sell.
Maybe you have some artwork that you could do without. The point is that everyone has things in their homes that they don’t really need to survive.
Make a small sacrifice and get rid of things you can live without to help get your dream off the ground.
Home Equity Loan
One of the easiest and most popular ways to get financing for a dental practice is to take out a home equity loan.
It can be a little scary to make this move, as failure to make your loan payments could cost you your home.
Therefore, you need to be very secure about the prospects of your new dental practice before you decide to make the move to take out a home equity loan.
401K
The majority of people have no idea that they can actually take a loan from their 401k retirement plans.
In fact, 401k holders can actually take out a loan of up to $50,000 from their nest eggs.
This loan must be paid back with interest within a period of five years.
There is a big catch with these 401k loans though. You must be sure that you will be able to pay the entire loan back with all the interest within the five years.
If you fail to repay the loan on time, you will be charged income tax on the loan as well as a penalty of ten percent as an early withdrawal fee.
Life Insurance
If you have a life insurance policy, you can use its value to take out a big loan to help you get your dental clinic started.
Most banks will let you borrow up to 90 percent of the value of the life insurance policy, which will give you a big chunk of money that you can use to buy the equipment that you need.
Friends and Family
Don’t overlook the possibility of borrowing the money you need from friends and family.
Nobody wants you to succeed more than those who are close to you.
If you have friends and family who can afford it, they are great sources of financing.
Make sure they are aware of the investment they will be making and offer discounts for them later on.
These are some of the best ways to get the financing you need to start your dental clinic.
The key is to never give up when you are looking for financing. If you are persistent, you will be sure to find the funds that you need.
