How to Secure Financing for Your Dental Practice

Looking to finance your dental practice? Our guide covers the options, application process, lender requirements and financial planning tips.

How to Secure Financing for Your Dental Practice

Got some big plans for your dental practice? Maybe you're looking to bring in more patients or upgrade your equipment.

Whatever your goals may be, one thing is certain - financing is essential. But let's face it, navigating the world of dental practice financing can be overwhelming.

That's where this guide comes in. We'll break down the process in a way that's easy to understand and give you the knowledge you need to make informed decisions about your business.

We’ll cover:

  • Options for financing
  • Applying for financing
  • What do lenders look for?
  • The importance of financial planning
  • Our financing partner
  • Conclusion

By following the tips outlined in this guide and working with a trusted company, you can feel confident in your ability to secure the funding you need to grow and succeed.

Options for Dental Practice Financing

There are generally two main options for financing your dental practice: Hire Purchase and Finance Lease.

Both options are forms of instalment credit, and they have different benefits.

Hire Purchase

Hire Purchase allows you to purchase the equipment outright at the end of the agreement. The benefits of Hire Purchase include:

  • Easier cash flow budgeting as repayments are fixed
  • Outright ownership on completion of the agreement
  • Capital preservation - existing funds can be used elsewhere
  • Interest charges can be offset against profits for taxation

Plus, expenditure may be allowable against taxable profit within your Annual Investment Allowance in the year of purchase to the sum of £200,000 to £1,000,000.

Finance Lease

A Finance Lease allows you to use the equipment for a set period of time without owning it. The benefits of a Finance Lease include:

  • No upfront deposits required
  • Easier cash flow budgeting as repayments are fixed
  • Up-to-date equipment - be ahead of your competitors
  • Capital preservation - existing funds can be used elsewhere
  • Fixed payments - tailored to suit your individual circumstances
  • Tax efficient - repayments may be offset against taxable profit
  • Protection of existing credit lines, making any further borrowing easier

Products and services are subject to eligibility, status, terms and conditions and availability.

Applying for Dental Practice Financing

When applying for dental practice financing, lenders will look for certain information to assess your application.

For an established practice, lenders may require:

  • Personal details for the main directors/partners
  • Whether the practice's income is NHS/Private/Mixed
  • Details about the length of time the practice has been established
  • Information about the trading style (limited company/partnership/sole trader)

For large transactions, lenders may require annual accounts for the practice and copy bank statements.

If you're a new start or "squat" practice, lenders will require a comprehensive business plan.

What Do Lenders Look for When Assessing a Finance Application?

When evaluating a dental practice finance application, lenders take various aspects into account.

They assess the viability of the business and the type of equipment that requires financing. In addition to this, they look into the credit history of the business and its shareholders to ensure that there is no adverse credit information.

Demonstrating the ability to generate the income required to service the debt applied for is also a key consideration.

By analysing these factors, lenders can determine whether the application is feasible and the level of risk involved in approving it.

The Importance of Financial Planning

While dental practice financing can be a key factor in the success of your practice, it's important to remember that there are other financial aspects to consider as well.

Financing can help with investments such as equipment upgrades and expansion, but it's also important to manage your cash flow, maintain profitability and plan for unexpected expenses.

A well-rounded financial strategy is essential for the long-term success of your practice. Here are some tips for effective financial planning:

Create a Budget

Develop a detailed budget that includes all your expenses, from rent and salaries to supplies and equipment.

Monitor Your Cash Flow

Regularly monitor your cash flow to ensure that you have enough cash on hand to cover expenses and take advantage of opportunities for growth.

Stay on Top of Your Taxes

Make sure you stay on top of your tax obligations to avoid penalties and fines.

Plan for the Future

Develop a long-term financial plan that takes into account your goals for the future, such as expanding your practice or saving for retirement.

Our Finance Partner is Braemar Finance

Braemar Finance is an established player in the dental market, with over 30 years of experience.

As part of a major UK banking group and FTSE 250 company, they are able to offer a “local” service to their clients through their seven area sales managers who cover the whole of the UK.

As a direct funder to the dental market, they are not a broker, which means all of the documentation that they would ask you to sign will be in the name of Braemar Finance.

This makes any lines of communication easier as you would not have to go through a third party when talking to the finance provider.

Braemar Finance can comply with a range of staged payments that Eclipse Dental requires for a particular project, and they can pay a deposit on your behalf, which helps to preserve your cash flow.

They have worked closely with us for over 10 years and value the relationship they have with our clients and with the Eclipse Dental team.


At Eclipse Dental, we understand that financing is just one piece of the puzzle when it comes to the success of your dental practice.

That's why we go the extra mile to help you achieve your goals by introducing you to trusted specialists who can assist you in every aspect of your practice, from design and build to cutting-edge technology.

We are focused on the long-term success of your business, and we are committed to supporting you every step of the way.

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