Customized financing to consolidate high-interest debt or fund major purchases or expenses.
WAYS TO USE YOUR LOAN
Tailored commercial financing that supports all your business needs to help you grow quickly.
Tailored for entrepreneurs that want to establish additional active and passive income streams.
Customized financing to consolidate high-interest debt or fund major purchases or expenses.
Table of Content
A successful dental practice owner is one who maintains the motivation of an entrepreneur—always looking for ways to grow the practice and build wealth.
For example, you may consider expanding into other profitable ventures like purchasing the location that currently houses your space. This could decrease your monthly expenses and give you the opportunity to earn long-term capital appreciation.
Can it be a distraction to your current business? Absolutely. You are, first and foremost, focused on running your core business and being a dentist.
However, owning your office space and generating additional earnings from your tenants can be a rewarding way to further build your wealth.
When you act as your own landlord, you never have to worry about certain aspects that commercial renters face, such as:
Also, you have more control over the look of the building and signage. If you are operating in a city with lower skylines, you may choose to invest in a two-story building that’s highly visible from a major street, making it easy for clients and customers to find you. Or, you may decide to install a street-side digital LED sign to promote your practice. With an average lifespan of about 10 years, these signs will certainly capture the attention of new customers and can be well worth the investment.
Owning your dental practice building will allow you to make the space truly yours. From high-end finishes to modern layouts, you can incorporate attractive elements that you may have forgone in a rented building. Further, upgrading the space means upgrading the image of your practice (i.e., your commercial real estate can quickly become a marketing play).
When you apply for a loan that requires collateral, the lender will likely ask you to sign a lien agreement. This contract gives the lender the right to sell the collateral if you can’t keep up with payments.
There are a few things to keep in mind as you decide which type of collateral is best for your loan.
The amount of collateral you need for a business loan depends on the type of collateral you're using and the lender's requirements. Different types of collateral will result in a different loan-to-value (LTV) ratio. Depending on the lender, you may only be able to access 75% or less of the value of the collateral you provide.
For example, say you want to use a loan to buy real estate that costs $400,000 and plan to use that real estate as collateral to secure the loan. If a lender offers an LTV ratio of 75%, you could potentially be eligible to finance 75% of the property’s value, or $300,000. Since lenders have different LTV ratios and requirements, it’s important to speak with each lender to determine how much money you can access based on your collateral and financial needs.
Secured business loans require borrowers to provide collateral to back the loan. In the case of unsecured business loans, borrowers won’t need to provide collateral. Some business loans through the Small Business Administration (SBA) won’t require collateral as long as you’re borrowing a small amount of less than $50,000*. BHG Financial’s business loans are secured by a lien via a Uniform Commercial Code (UCC) filing.
Taking out a business loan is a big decision, but BHG’s concierge support team is available to guide you through our streamlined lending process. With business loans of up to $500,0001,2 and flexible terms of up to 12 years1, you can apply for the amount to suit your business needs. Get started today by viewing your personalized estimate online.