October 9, 2018
How to Get a Better Deal on Your Business Loan
There’s room for negotiation in every step of the dental-practice-buying process, including when shopping for a business loan. A low interest rate, low fees, favorable payment schedule, and flexible or no-collateral security will all significantly enhance the benefits of your business loan. Here’s how to get a better deal.
Know your numbers
Like in your personal life, good credit can work to your advantage. In order to get the best deal, make sure your credit score is above a 680. Likewise, having at least $50,000 in the bank will help you get favorable terms on your loan.
Learn your value
For existing practice owners, going through the valuation process can assess the true worth of your business. Though nearly impossible for a brand-new dentist to obtain, real estate and even cars can help get you a positive net worth faster.
Get quotes from at least three different lenders that have experience in practice financing (two national and one local) when shopping around for the best loan. Research different promos from each, and have them compete for your business.
After choosing your lender, getting prequalified and getting in your prequalification letters as soon as possible will ensure you aren’t overstretching your financial means.
Choose lending type
Conventional lending will save you a considerable amount of time, among other things. With an SBA loan, which works with the government, be prepared to complete lots of paperwork.