It is possible to get a dental practice loan even if you have bad credit. While not all dental practice loan options will be available to you, there are plenty to pick from, enabling you to start your practice while you work on improving your current financial situation. Following are some options to consider if you are ready to start your own practice but have a less than stellar credit score.
Boost Your Score Before Applying for a Loan
It’s wise to look for ways to improve your credit score in advance of applying for a dental practice loan. If you have a number of loans, pay off as many as you can as the number of loans you have impacts your score. Cut back on expenses so you have more money on hand to keep up with payments. It’s also wise to order copies of your credit report and check them for mistakes as even small errors could be lowering your credit score.
If you have serious financial problems, seek out professional help in the form of debt consolidation and credit counseling. Getting professional assistance can enable you to pay off pending loans faster and easier than would have otherwise been possible.
Look for a Lender that Specializes in Dental Practice Lending
There are a number of lenders that specialize in lending money to dentists who want to purchase an existing practice or open a new one. These lenders typically offer services that other lenders do not provide, including faster loan approval and more money than traditional lenders.
Another advantage of working with dental-specific lenders is that they understand the industry. Such lenders know that dentists are in high demand and are more likely to succeed in business than just about any other business professional. Furthermore, lenders who specialize in dental lending will know if the practice you want to open or purchase is worth investing in and may be able to give you good advice that can help you succeed in your new business venture.
Create an Account with a Credit Union
Credit unions are more likely to provide a dentist with a bad credit loan than a regular bank. The reason for this is that credit unions not only take your credit score into account but also consider the reasons why your credit rating is low. If you have a low rating due to taking out multiple loans to fund your studies and/or have other valid reasons for having a low score, you should be able to get a dental practice loan from a local credit union with reasonable terms and conditions.
Look for Alternative Lenders
It’s important to choose a lender that has a reputation for providing honest, professional services. However, this doesn’t mean you need to work with a bank or credit union to get the loan you need. There are a number of nontraditional lenders that provide bad credit small business loans to professionals from all industries and walks of life. Check out a few alternative lenders and compare offers to see which one is the best deal.
Choose a Practice with Care
Believe it or not, many banks pay more attention to the practice you intend to purchase than they do to your current credit score. This is just one of the many reasons why it’s important to pick a practice with care. Don’t settle for a mediocre practice just because you are afraid you won’t get the loan you need to buy a truly good one. You are more likely to get a large loan to buy a good practice than you would be to get a medium-sized loan to purchase a practice that is barely making it financially.
There are a number of important factors that a bank will want to know about the practice you intend to purchase. These include the size of the practice, its growth rate, how profitable it is and how the majority of its income is generated. The bank will also want to know about your dental abilities. If you can perform the same procedures as the dentist you are purchasing your practice from, this will improve your chances of obtaining a loan.
Don’t hesitate to launch out and purchase your own practice even if you have bad credit. There are plenty of loan options even for a dentist who has a low credit score, making it possible to obtain needed funding to purchase or start a successful practice. Consider the tips outlined above and do your own research to see which loan option best fits your needs and then get started on making your dreams come true.