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Dental Startup Financing Tips for Associates



Financing For Startups - Part 1
2020-04-13  • 60 min
Financing For Startups - Part 1
The Startup Dentist
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Dental Startup Financing: What Associate Dentists Need to Know Before They Borrow

Welcome back to the Startup Dentist Podcast—where real-world insights and strategies meet startup-minded dentists ready to build something meaningful. I’m your host, Jayme Amos, and today we’re joined by someone who’s been at the heart of over 900 dental startups: Stephen Trutter, President of Ideal Practices and a trusted advisor in the world of dental financing.

With more than half a billion dollars raised for dental practices across the country, Stephen is here to help you understand the right way to approach financing your startup. Whether you're an associate dentist just starting to explore ownership or already gearing up to secure funding, this episode is packed with practical advice that could save you time, money, and stress.

Let’s dive into Stage 2 of the Startup Journey: Financing—and what every associate needs to know before signing on the dotted line.

The Structure of Dental Startup Loans: Beyond Rate and Term

Too often, dentists obsess over interest rates and loan terms. And while those matter, they don’t tell the full story.

Stephen’s advice? Focus on cash flow.
Your ability to sustain and grow your practice depends more on how cash moves in and out each month than on decimal points in your APR. A lower interest rate won’t matter if your monthly payments are unmanageable or your working capital dries up six months in.

We also debunk the myth that you need to produce like a rockstar right out of the gate to survive. Here’s a reality check:
Six crowns per month—that’s all it takes for many associate dentists to cover startup loan costs when structured correctly.

So yes, it’s doable. But only if you understand the strategy.

Approval Isn’t Everything: Why the “Yes” Might Be Misleading

Loan approval feels like a green light. But here’s the catch: just because you’re approved doesn’t mean your plan is smart.

Bank underwriters aren’t practice strategy experts. Their approval doesn’t guarantee that your practice will thrive—it just means you passed their financial filters.

To set yourself up for real success, you need a clear plan. That means understanding your financials, crafting a solid business vision, and being prepared to negotiate—not just accept—what’s handed to you.

The Silver Platter Method: Making It Easy for Lenders to Say Yes

One of the best ways to secure the right funding is to present your plan like a professional. That’s what we call the “silver platter method.”

It means you show lenders that you’ve done the work:

  • You know your demographics

  • You’ve mapped out cash flow projections

  • You’ve created a smart budget and operational plan

When you come prepared, lenders take you seriously—and your options open up.

Strategy Tips: Picking the Right Bank and Prioritizing Practice Over Property

When it comes to ranking banks, don’t just go with who offers the lowest rate. Look for a lender who:

  • Understands the dental industry

  • Offers flexibility in payment terms

  • Provides enough working capital to get you through startup challenges

Also—let’s tackle a hot topic: Should you buy a home or start your practice first?

Stephen’s take is clear: Start your practice first.
Launching your business creates long-term financial leverage. Trying to juggle both a mortgage and a startup loan as a new associate? That’s a fast track to financial stress and missed opportunities.

Debt Isn’t the Enemy—Poor Strategy Is

Too many dentists believe the path to success is avoiding debt. But here’s the truth: the right kind of debt can actually build your future.

If your loan is structured with growth in mind—and if you’re using it to fund a smart, sustainable business—then it’s a tool, not a trap. The key is making sure your financing aligns with your long-term goals.

Key Takeaways from Today’s Episode

  • Cash flow matters more than your interest rate

  • Loan approval is not a guarantee of startup success

  • Be prepared to negotiate and present a real plan

  • Six crowns/month can be enough to support your startup loan

  • Delay the home purchase—invest in your business first

  • The right debt can be your most powerful growth tool

Need Help Navigating the Financing Journey?

Don’t try to figure it all out alone. You can get support from:

Thanks for tuning in to the Startup Dentist Podcast. If you found today’s conversation helpful, subscribe and leave us a review—it helps more dentists like you find the path to practice ownership.

Until next time, keep building smart—and stay focused on your future.