Skip to main content

Are you considering the prospect of buying your first dental practice? If so, ensuring that you complete the process in the most effective fashion is absolutely essential as you bid to start the next chapter of your career in style. Frankly, the first task on your agenda revolves around financing your first dental practice.

Given the cost and importance of the decision, several contributing factors require careful consideration. Here’s all you need to know ahead of making the purchase.

Should You Own Your Dental Practice?


Making the transition from associate dentist to dental practice owner is a very attractive proposition, but you will encounter a lot of challenges along the way – and the vast majority aren’t even related to the dentistry work itself. So, before you even consider looking at different financing options, the first assignment is to confirm that this is the right path to take. As an experienced and highly professional dentist, you naturally take great pride in helping patients discover the joys of boasting a winning smile.


However, you also have to consider your personal desire to gain the best financial rewards. After all, this is the main incentive for having a career in the first place. Some associate dentists are better suited to remain on their current career trajectory. Then again, there is no doubt that owning a dental practice is one of the best things you can do.

Launching your own dental practice requires a lot of work, including several admin tasks. On a brighter note, however, it enables you to maintain control of the entire venture. It allows you to provide world-class dental care in the right way while also gaining the opportunity to grow the business and gain some very lucrative returns.

The fact that there are 12,000 registered dental practices successfully operating in the UK underlines shows that the transition from employee to the employer is worthwhile.

Frankly, the positives easily outweigh the negatives.

The Incentives For Owning A Dental Practice

teeth money

The list of benefits gained from becoming a dental practice owner are plentiful. It includes, but is not limited to:

Find a location that’s suited to your personal circumstances.
Employ an interior design layout that you love.
Invest in the modern equipment needed to bring the best results.
Hire and work with people that you can get along with.
Utilise modern communication systems to improve patient care.
Remove the upper limit on what you can potentially earn.
Use your first office as a springboard for launching a dental franchise.


Even the challenges relating to interior design and finding the right equipment for your business is very exciting. If you have the skills, confidence, and business acumen to thrive, this is the ultimate long-term investment into your future for the sake of your finances, personal aspirations, and sanity.

As with many challenges in life, though, the first steps are often the most challenging. Financing can be stressful, long-winded, and very difficult to get right. The Peloton can support you throughout.

The Best Banks For A Dentist Practice Loan


While there are several options available for funding your dental practice purchase – including private investment, crowdfunding, and personal funding – securing a business bank loan is the most common way to fund a new dental practice by far.

Each bank has its own individual policies, application restrictions, limitations, and regulations. Therefore, it’s important to remember that rejection from one lender needn’t end your dream of owning a dental practice.


When searching for a bank loan to finance your dental business, taking the first deal that is offered will often limit your success. Therefore, it’s imperative to know what you should look for.

Check each of the following, and you won’t go far wrong:

Value of loan
The interest rate on the loan
Length of loan
Arrangement fees
Early repayment charges
Whether loan extends to cover equipment
Collateral requirements
Late payment fees
Additional service

In addition to those items, it’s important to When the loan you choose satisfies your needs for each of the above while offering a fair service that is tailored for businesses n the field of dentistry, success is assured.

Several banks offer loans for the purpose of buying a dental practice. Our experts at the Peleton can provide the advice needed to understand the finer details before making the final decision. Nonetheless, it’s worth conducting a little research into the best options currently out there.

Here are some of the most popular solutions currently available:

National Westminster Bank
15-year term available with loan amount determined by individual dentist circumstances.

Barclays Bank
15-year term available with loan amount determined as a % of the purchase value.

Lloyds Bank
15-year term available with loan amount determined as a % of the purchase value.

7 to 10-year term available with loan amount determined as a % of the purchase value.

Wesleyan Bank
15-year term available with loan amount determined as a % of the purchase value.

Metro Bank
15-year term available with loan amount determined as a % of the purchase value.

Santander Bank
15-year term available with loan amount determined as a % of the purchase value.

There is no one right or wrong answer when looking at potential lenders, and the only challenge is to find the service that suits your personal requirements. All applications can be handled in branch and online too, which can be very useful. With the impartial help of The Peloton by your side, finding the ideal solution is easy.

Truths About Dental Practice Funding

The rewards of owning a dental practice are incredible, but the process isn’t an easy one.

Preparing yourself or the journey ahead by gaining a deeper understanding of what to expect during the process.

Only then will you have the best shot at securing the best funding.


What do banks look for in a dentist?

magnifying glass

When looking for a bank loan to fund your dentist practice purchase, it’s imperative that the terms of the agreement are suitable for you, the borrower. Then again, it’s equally important to understand what banks expect from applicants. Otherwise, the likelihood of getting accepted for the loan become far smaller.



Banks will want to see the following details before considering the application:

  • Three years worth of details regarding asset liabilities, personal income, and expenditure.
  • Details regarding your earning history as an Associate Dentist, including info on hours work.
  • Background information on your personal finances, including credit scores etc.
    Homeownership details.

In addition to the above, applicants should be aware of several other features surrounding the application process.

Deposits for your dental practice loan

deposit boxesLenders also require borrowers to stump up some capital themselves. However, most lenders will usually offer a maximum amount of between 70% and 80% of the purchase price, although some can lend up to 95% to certain applicants.




Learning and using EBITDA


Banks may also take EBITDA (Earnings Before Interest, Tax, Depreciation, and Authorisation) into account. This means that the forecasts from your business plan may be used to secure a greater level of funding.

The formula for calculating EBITDA isn’t as daunting as it might first seem but is still an assignment that will normally require a professional touch. The Peleton can support you through the preparation of these forecasts to further support your cause.


Analysing external reports and accounts

reportsWhen seeking help from outside agencies, you need to know that all external reports and projects are honest. Errors in these key documents could come back to haunt the application, leading to rejection, and the business as a whole. If the financial elements are inaccurate to start with, the entire practice purchase is set to suffer. The Peloton can provide support when handling these elements to maximise your chance of getting accepted for a loan as well as helping you gain the desired amount.


Maintaining honesty throughout

You expect banks and lenders to be honest with you throughout the dental practice purchase. Naturally, they need that level of transparency and honesty to be reciprocated.

Lenders aren’t stupid, and they won’t be willing to give you tens of thousands of pounds without a reason to trust you and believe in the business.



Running a dental care business isn’t all about dentistry. You’ll need to handle complaints, sickness, CQC, Health and Safety, debtors, invoicing, and marketing. Honest regarding these elements won’t only help guide your business on a personal level, but it enables lenders to paint a clearer picture.

Establishing a squat dental practice

Establishing a squat dental practice is an increasingly popular option, particularly for young associate dentists that are completing their first dental practice purchase.

This approach requires two main additional elements – finding a suitable location and securing the appropriate D1 planning form for dentistry.



A thorough business plan should detail competition, other local services, hours of opening and provision of services to underline the demand for a dental practice in the area. There will also be a need for three years worth of projections.

These items do not need to be complicated and can be something like “we will expand our practice from one surgery to three by 2020.”

The plan should also include a 12-month cash flow projection. You will also need to factor in the costs associated with building plans and equipment, as well as work required outside of the practice to make up for the reduced earnings that you will see during those early phases.

Improving your new dental practice

arrowsWhen buying an existing dental practice, the cosmetic upgrades and equipment upgrades can take place over a longer period of time. However, you will need to prioritise which items need completing ASAP and factor them into your plans when seeking a loan for your dental practice purchase.

The selling dental practice owner will appreciate that upgrades are needed, and the figures can be used as a point of negotiation too.


How long the process takes (really)

ball of stringBuying your first dental practice can take several months regardless of whether you take a traditional route or look for squat dentistry opportunities. With the latter idea, you’ll need to gain a D1 acceptance along with providing projects for the business and cash flow. Other issues that need to be considered include interior design and asset management.



Consequently, then, it can take several months for the purchase to be finalised. The following tasks will need to be completed:

  • Review the premises and obtain the planning permissions.
  • CQC approvals.
  • A dental practice valuation.

As for the actual borrowing itself, most lenders take 3 working days to outline the details of what they are prepared to lend. Following the submission of all necessary documents, it will take up to 8 working days to receive a formal full credit backed offer. Once this has arrived, the process is moving in the right direction and you can relax in the knowledge that the practice will soon be open. Get in touch with us about anything dental accountancy!

Click to call us 01326 660022

Are you a member of our Dental Business Coaching Group? Join Here.