Set yourself up for success with these essential steps…
Buying your first dental practice is an exciting leap, but when it comes to securing funding, many first-time buyers feel out of their depth. Lenders look for confidence, clarity, and a compelling case — and that starts long before the application form.
Here are 10 top tips to help you approach funding the right way and maximise your chances of success:
- Start with a financial health check
Before approaching any lender, take stock of your personal finances. Clear unnecessary debts, understand your credit score, and know exactly what you can afford to borrow. Lenders will dig into your financial history — be prepared.
- Get clear on your goals
Are you buying a small NHS practice or a fully private one with multiple surgeries? The clearer your vision, the more tailored your finance options can be — and the more confident lenders will feel in backing you.
- Build a detailed business plan
A strong business plan is essential. It should include practice details, market analysis, projected income and expenditure, and how you plan to grow or improve the business. It shows lenders that you’re not just a good clinician — you’re a smart business owner too.
- Know what lenders are looking for
They want evidence of repayment ability, sector knowledge, and a solid plan. Demonstrating a clinical & earnings track record in dentistry, well conducted bank accounts and overall strong financial discipline all go a long way.
- Don’t go it alone
Work with an independent commercial finance broker like FTA Finance. We understand what lenders want, how the dental sector works, and which banks are offering the best terms right now. It’s not just about securing funding — it’s about securing the right funding to fit your personal circumstances both in terms of price and flexibility.
- Understand the full cost of ownership
It’s not just the purchase price — consider legal fees, valuation, accountancy costs, CQC costs, refurbishment, equipment, working capital and insurance. Make sure your finance application reflects all of these to avoid underfunding.
- Be realistic with your deposit
Most lenders expect a deposit, but the amount can vary. Knowing what’s achievable for you (and what’s expected by different banks) will help avoid wasted time and disappointment.
- Don’t just compare interest rates
The lowest interest rate isn’t always the best. You need to consider repayment flexibility, overall loan term, length of any shorter committed period (after which further charges may occur), early repayment costs, ongoing covenants plus the level & type of security required. FTA Finance can help review and compare the whole funding proposals from a panel of lenders.
- Choose the right practice
A good practice isn’t just about location or income — it’s about sustainability and growth. We can help assess the practice’s financials and how they align with your funding position, future goals, and lifestyle.
- Be patient, but proactive
The process can take time, but preparation is key. Start your funding conversations early — ideally before you find a practice — so you’re ready to move quickly when the right opportunity appears.
Ready to take the first step towards ownership?
Speak to us today on 0330 088 1157 for personalised, independent advice — and make sure your first purchase is a successful one.
We are able to source a wide range of innovative and competitive Healthcare Finance packages specifically tailored to, and for, Healthcare Professionals such as:
Remember!
You are in a specialist market so use a specialist broker who understands your sector. With access to major banks and specialist niche healthcare lenders, we know the types of proposals that are synonymous with this sector.
