Refinances & Consolidations

You have spent years building equity into your dental practice. Now you need to lower your monthly bills or improve cash flow. A refinance or consolidation can free the finances you need to grow your practice. We can perform a practice valuation to determine your practice’s equity and then secure the best possible payment options and rates.

Borrow up to 85% of your practice’s equity to:

Contact us to learn more about refinancing and consolidation opportunities.

Here are some questions about refinancing and debt consolidation:

What are the advantages of refinancing debt?

Consolidating, refinancing and/or re-amortizing existing business debt can allow dentists to significantly decrease their monthly loan payments/interest rate, providing for a substantial increase in cash flow that can be used to reinvest in their practice or enhance their personal income.


What are different scenarios a doctor might consider refinancing debt?

Dentists should consider refinancing their practice debt in any scenario where they are looking to lower their interest rate and/or decrease their monthly debt obligations. It is always a good idea to inquire about refinancing/consolidating existing practice debt when considering borrowing additional funds for equipment, tenant improvements, working capital, etc.


How much does the rate have to decrease for it to make sense to refinance a loan?

It truly depends on the dentist’s goal. A refinance may make sense at any time if the dentist’s primary goal is to consolidate/re-amortize business debts in order to decrease monthly loan payments and increase cash flow. However, if the dentist is considering refinancing simply to lower the interest rate then he/she typically needs to decrease the rate by at least 1% or more to justify the time and cost associate with refinancing.


Can a doctor cash out or take equity out upon a refinance of a dental practice?

It may be possible for you to obtain a small amount of working capital or secure additional financing for tenant improvements/equipment purchases upon refinancing. However, most lenders are unwilling to allow the doctor to “cash out” or take equity out of the practice in cash.


Can other debts be included in the refinancing of the loan?

Typically debt related exclusively to the business can be included in a practice refinance loan. It is smart to keep business and personal debts separate and dental lenders are typically not interested in co-mingling the two. Dentists could also run into issues with their accountant and/or the IRS if the practice is deducting interest on a loan that was used to refinance personal debt obligations where the interest would otherwise not be deductible, such as student loans (depending on personal income level) or personal credit card debt


Does a refinance go through the same underwriting process as an acquisition?

Yes, a refinance goes through the same underwriting process as an acquisition but is considered to have a lower level of risk due to the fact that there is no transition of ownership taking place.


Does a doctor need to do anything prior to applying for a refinance or debt consolidation loan application?

The doctor doesn’t need to do anything in particular other than be prepared to articulate their goals in refinancing and have the ability to readily provide all relevant personal and practice financial information.