Anyone who takes over a practice, founds one or wants to invest in his practice must always have money to be able to provide this financing. Larger investments can rarely be financed out of one’s own pocket, so that a loan for a dental practice is often taken out. The criteria of financing and what a loan costs must be taken into account. Borrowing raises many questions that need to be considered in advance.
The credit for a dental practice must always match the financing project. The loan term and the useful life of the asset should be compared. It often happens that the first loan for a dental practice has not yet been repaid and a new investment is just around the corner. If two loans then run, this is a high financial burden and can affect solvency. The characteristics of the different loans should therefore be considered.
Current account credit – a way of borrowing
The current account credit is granted by the bank and offers a loan amount that is transferred to the practice account. This loan can be drawn on at any time, as with a credit facility. This loan should only be drawn on for a short time, because it is not exactly cheap and is therefore only suitable for emergencies. Interest only has to be paid for the amount that was actually used. A bank often agrees that the account is slightly overdrawn, but this will not be possible every month. If the doctor gets practice material, this loan is suitable for a dental practice.
Use government promotional loans
When a dentist goes into business for himself, he is rewarded by the state. The federal government and also the federal states support the self-employed with a loan for a dental practice. There are grants for business start-ups, publicly funded loans and business advice. The loan does not have to be taxed or paid back. Once the practice has opened, the dentist can end his unemployment.
The loan for starting a business is granted for a term of three years. The applicant receives 600 USD in the first year, only 360 USD in the second year and 240 USD in the third year. If the dentist opts for the bridging allowance, he will receive it for six months. The maximum amount is the amount of unemployment benefit he would have received.
What are the requirements?
If it is a business start-up, a business plan must first be submitted. This is very important, because the location de Praxis says a lot about future earnings. If the practice is located in a village instead of in a big city, the profit can be much lower, since not so many patients will visit the practice. This enables the bank to see exactly what expenses can be expected in order to then be able to determine the loan amount. In addition, the bank needs the latest bank statements, a budget and Credit Bureau information. Ideally, this should be positive so that the loan is also approved. The doctor should be able to present his plan convincingly and, if necessary, contact a management consultant in advance.