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Dental Startup Financing Made Simple



Financing For Startups - Part 2
2020-04-14  • 38 min
Financing For Startups - Part 2
The Startup Dentist
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Dental Startup Financing: How to Fund Your Dream Practice Without Losing Sleep

Welcome to the Ideal Practices Podcast—where real-world insights and strategies meet startup-minded dentists ready to build something meaningful. I’m your host, Stephen Trutter, and today we’re digging into a topic that every future practice owner needs to master early: financing your dental startup.

Whether you're planning a full ground-up build or looking at an acquisition, the financial decisions you make at the start will shape your success for years to come. So let’s cut through the noise and get to what really matters.

Are You Really Ready to Finance Your Startup?

Before we talk about lenders, let’s talk about you.

One of the smartest moves you can make is taking a clear-eyed look at your current financial picture. Where do you stand with savings, credit, student debt, and monthly obligations? Knowing this helps you avoid surprises and position yourself for the best possible loan terms.

Because here’s the truth: No money, no practice. Your clinical skills are essential—but they can’t get you a loan. A solid financial foundation can.

Ranking Banks: What to Look For Beyond Interest Rates

Not all lenders are created equal, especially when it comes to startups. You’ll want to compare options with a few critical filters:

  • Loan requirements – What credit score do they want to see? Any net worth minimums?

  • Repayment terms – How flexible is their structure? Can you defer payments or interest early on?

  • Funding amounts – Will they cover your full startup budget or leave you short?

  • Dental industry expertise – This one is non-negotiable. You need a bank that gets the unique needs of a dental startup.

We’ve seen clients choose the lowest rate only to hit roadblocks because the bank didn’t understand dental timelines, equipment costs, or how long it takes to hit profitability. Don’t make that mistake.

Should You Buy a House or Start Your Practice First?

This is a question we get all the time—and here’s the bottom line: focus on the practice first.

Starting your business gives you long-term income potential and opens up more financial freedom down the line. It also puts you in a stronger position to buy the right house when the time is right, not just the one your current DTI allows.

Student Loans: How to Handle Debt Without Panic

Yes, student loans are real—and often large. But here’s the part that gets overlooked: owning your practice can actually be the fastest way to pay them off.

That’s right. The income ceiling for an associate is usually fixed. But when you own your practice, you control the growth—and the revenue that comes with it.

We also talk in this episode about using income-based repayment plans strategically. Staying on them longer can provide flexibility and give you room to breathe financially while your startup grows.

Key Takeaways from This Episode

  • Start with a full understanding of your personal financial health

  • Rank banks based on startup-friendliness, not just rates

  • Prioritize your practice before purchasing a home

  • Own your debt strategy—don’t let it own you

  • Understand that practice ownership can help accelerate debt payoff

  • Use income-based repayment options to your advantage in the early years

A Few Words of Wisdom

As you navigate this part of your journey, keep these three things in mind:

  • No money, no practice. Have a financing strategy before anything else.

  • Interest rate matters, but it’s not everything. Look at the full picture of what the bank offers.

  • Debt doesn’t have to be your enemy. With the right plan, practice ownership is your best ally in overcoming it.

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Thanks for tuning in. Subscribe, leave a review, and share this episode with a colleague who’s ready to build their dream practice.

Until next time—dream big, plan smart, and keep moving toward your ideal practice.