Everything You Need to Know about Financing Your Orthodontic Practice Start-up

Welcome to the Hey Docs! Podcast with your host, Jill Allen. Today, Steve Steinbrunner from Provide is joining me back on the show. In this episode, we cover all things loan, from what you need to do before you start the loan process to the details when it comes to getting approved and even the nuance of land and property loans. No matter where you are in your practice journey, there is something in this episode for you.  Let’s dive in! Summary In this conversation, Steve Steinbrunner, Director of Practice Finance at Provide, discusses the lending process for dental practices. He emphasizes the importance of preparing in advance for a practice loan, including maintaining a good credit score and having sufficient liquidity. He also advises against paying off student loan debt before starting a practice, as cash flow and liquidity are more important. Steinbrunner addresses common pitfalls, such as lack of vision and tax obligations, and highlights the increasing size of loans due to rising construction costs. He encourages dentists to seek dental-specific contractors and understand the cost per square foot for construction in their area. In this conversation, Steve Steinbrunner and Jill discuss the financial aspects of starting a dental practice. They cover topics such as the cost of starting a practice, the role of loans in financing the practice, the importance of budgeting, and the option of buying a building or land. Steve emphasizes the need for a team of advisors and experts to guide the process and make informed decisions. He also highlights the importance of asking the right questions and choosing a lender that aligns with the dentist's long-term goals. https://www.getprovide.com/https://www.facebook.com/GetProvide/ https://www.instagram.com/getprovide/https://www.linkedin.com/company/getprovide/https://www.tiktok.com/@thepathtoowningithttps://www.youtube.com/@getprovide TakeawaysPrepare in advance for a practice loan by maintaining a good credit score and having sufficient liquidity.Avoid paying off student loan debt before starting a practice, as cash flow and liquidity are more important.Be aware of common pitfalls, such as lack of vision and tax obligations.Understand that the size of loans has increased due to rising construction costs.Seek dental-specific contractors and understand the cost per square foot for construction in your area. Starting a dental practice can cost around $700,000 to $800,000, with construction costs being a significant factor.It is important to work with a team of advisors, including a lender, realtor, and contractor, to make informed decisions and ensure the success of the practice.When considering a loan, it is advisable to leverage the bank's financing and save personal funds for other expenses or investments.Buying a building or land for the practice can be a viable option, especially considering high rent rates and the potential for long-term financial benefits.Choosing a lender that aligns with the dentist's future goals, such as multiple practice ownership, is crucial.Excel spreadsheets are a valuable productivity tool for financial planning and budgeting.Asking the right questions and seeking advice from...