Dental Practice Loans - NexGen Lending

Short answer: Dentists usually finance chairs, imaging and CAD/CAM equipment with equipment financing, use an SBA 7(a) loan to buy a practice or start one, and keep a line of credit for payroll and supplies between insurance payments. Lenders focus on collections, patient base, the dentist’s experience and practice cash flow.

At a glance

Best for equipment: Equipment financing (chairs, digital X-ray, CBCT, CAD/CAM, scanners)
Best for acquisitions: SBA 7(a) loan
Best for cash flow: Business line of credit
NexGen amounts: $10,000 to $20,000,000 across programs
Approval speed: Typically 1 to 24 hours for many programs
Credit: 650+ on most programs; 500+ for revenue-based financing; 700+ for SBA loans

Dentistry is one of the most equipment-intensive small businesses there is. Every operatory needs a chair, delivery unit, lights and imaging, and technology like intraoral scanners and in-office milling keeps evolving. Add the cost of buying or building a practice, and financing becomes part of nearly every dentist’s career. This guide covers the best financing for general, pediatric, orthodontic, cosmetic and specialty dental practices, and answers the questions dentists ask us most.

At NexGen Lending, we help dental practices nationwide compare equipment, working capital and acquisition financing with one application.

What is the best loan for a dental practice?

Short answer: For equipment, equipment financing is usually best because the equipment secures it. For buying or starting a practice, SBA 7(a) loans are popular because of their long terms. For everyday cash flow, a line of credit lets you draw only what you need between insurance and patient payments.

Financing type	Best for
Equipment financing	Dental chairs, digital X-ray, CBCT, intraoral scanners, CAD/CAM milling, sterilization
SBA 7(a) loan	Buying a practice, partner buyouts, new practices, refinancing
Business line of credit	Payroll, lab bills and supplies between insurance payments
Term loans & unitranche debt	Adding operatories, office remodels, marketing
SBA 504	Buying your office building
Real estate funding	Using equity in your office or home (HELOC, cash-out refinance) to fund the practice

How do I finance buying a dental practice?

Short answer: Most dentists buy a practice with an SBA 7(a) loan, which goes up to $5 million and can finance goodwill, equipment and working capital. Lenders review the practice’s collections, active patient count, hygiene production, payer mix and the buyer’s clinical experience, and often expect a transition period with the seller.

Dental acquisitions are often priced on collections and cash flow, with goodwill making up much of the value. Confirm how many patients are active, how long hygienists and staff plan to stay, and how insurance participation will transfer. Our guide to buying an existing business covers due diligence step by step.

What is an active patient? An active patient is usually someone seen within the last 12 to 18 months. Active patient count is one of the most important numbers in a dental practice sale because it predicts future production and hygiene revenue.

What do lenders look for in a dental practice?

Short answer: Lenders look at collections and deposits, active patients, payer mix between insurance and fee-for-service, the dentist’s licensing and experience, personal credit, existing debt and lease terms. Established practices with steady collections, and dentists with strong clinical track records, typically get the best terms.

Time in practice and the dentist’s clinical experience
Monthly collections and consistent deposits
Active patient count and hygiene production
Payer mix (PPO, fee-for-service, Medicaid)
Personal credit score and existing debt
State dental license in good standing
Lease or property details

How do I qualify for a dental practice loan?

Short answer: Keep your license current, track collections and production, gather business and personal tax returns, get written equipment or build-out quotes, and keep personal credit healthy. For acquisitions, bring the seller’s financials and a transition plan. Showing how financing grows production makes approval more likely.

Know your numbers. Track collections, production per operatory and hygiene revenue.
Gather documents. Tax returns, a current profit and loss statement and bank statements are common requests.
Get quotes. Written equipment and contractor quotes help lenders size the loan.
Show the return. Explain how a new operatory, scanner or service adds production.
Plan the transition. For acquisitions, outline how the seller will introduce you to patients.
Compare offers. See how we compare lender offers.

Can a new dentist start a practice with a loan?

Short answer: NexGen programs need some operating history. Revenue-based financing looks for steady deposits and a 500+ credit score, and most other programs need 12+ months in business and 650+ credit. NexGen programs are built for operating businesses, so brand-new owners often start with SBA microloans through nonprofit lenders, a CDFI or the local SBDC.

A new practice needs working capital for marketing and overhead while the patient base builds.

How fast can a dental practice get funded?

Short answer: Many NexGen programs approve in 1 to 24 hours, and equipment and working capital can fund quickly after approval. Practice acquisitions, new build-outs and building purchases usually take several weeks because of valuations, appraisals and documentation.

Frequently asked questions about dental financing

Can I finance a CBCT or CAD/CAM system?

Yes. Advanced imaging and milling systems are commonly covered by equipment financing. Show lenders the new procedures or lab savings the equipment brings.

Can I finance used dental equipment?

Often, yes. Lenders will ask for the manufacturer, model, age and condition. Refurbished equipment from reputable dealers is commonly financed.

How do I add operatories to my practice?

A term loan or equipment financing typically covers build-out and equipment. Our guide to financing a second location helps if you’re expanding to a new office.

Does student loan debt hurt my chances?

Lenders familiar with dentistry expect some student debt. They look at your overall ability to repay, including practice cash flow and income.

What if my credit isn’t perfect?

With a 500 to 649 credit score, revenue-based financing is the main option, since it leans on sales more than credit. Most other NexGen programs, including equipment financing and lines of credit, require 650+, and SBA loans require 700+. Below 500, NexGen's business credit guidance can help you understand your credit profile and build toward approval.

Ready to upgrade your operatories or buy a practice? Apply now or call (908) 639-4361.

This article is for general informational purposes only and is not financial, legal, or tax advice. SBA figures come from the U.S. Small Business Administration and NexGen figures from NexGen’s service pages, as of October 2026. Loan terms, rates, and eligibility vary by lender and program and are subject to approval. Availability varies by state.

Dental Practice Loans: How Dentists Get the Right Financing