Punta Gorda, FL dentists can fund an associate buy-in with a term loan and a seller note together, a scanner with equipment financing that leaves the software fee outside, and an unused operatory with either a refurbished chair package or a new one. A practice purchase starts with the seller's records. Each part of this article uses invented figures.
A buy-in can combine cash, a seller note and a term loan; a scanner quote can separate hardware from a monthly software fee; a refurbished operatory package trades a lower price for a shorter term; and a purchase starts with production, collections and equipment records.
A dental practice loan for an associate buy-in paid partly through a seller note
An associate buying into a practice does not have to pay the whole price from one source. Part can come from the associate's cash, part from a note the selling dentist agrees to carry, and the rest from a term loan.
Illustration only, invented figures: the practice is valued at $735,000, and the associate's 40% share is priced at $294,000. The split:
| Source | Amount | Rate | Months | Monthly payment |
|---|---|---|---|---|
| Associate's cash (10%) | $29,400 | - | - | - |
| Seller note (25%) | $73,500 | 7.5% | 60 | $1,472.79 |
| Term loan (balance) | $191,100 | 10.35% | 84 | $3,207.15 |
Together the two payments come to $4,679.94 a month until the seller note ends in month 60, then $3,207.15 for the last 24 months of the loan. A lender may ask that the seller note be paid only after its own loan in a default, and the selling dentist may ask for the reverse; that order is worth settling in writing before either note is signed.
Dental practice loans for an intraoral scanner when the software is billed separately
A dental practice's scanner quote can show two prices: the hardware, which can be financed like other equipment, and a software or cloud fee billed monthly by the maker. Equipment financing covers the first; the second is an operating cost the office pays on its own.
Illustration only, invented figures: the quote lists scanner hardware at $28,700, a cart and laptop at $3,150, training at $1,200, $33,050 in all, plus software at $265 a month.
- Hardware, cart and training financed for 48 months at an invented annual rate of 10.75%: $850.19 a month, with $265 more for software, so $1,115.19 leaves the account each month.
- Folding the first year of software (an invented $3,180) into the amount financed: $931.99 a month for 48 months, plus $265 a month for software from month 13.
Across the four years, the first route costs $53,529.12 and the second $54,275.52, so financing the software adds $746.40 of interest on a fee the office could pay from operations (our arithmetic).
Equipping an unused operatory: a refurbished chair package or a new one
Equipping a room whose water, air and vacuum lines are already in place means buying the chair, the delivery unit, the light and the stools. The lines and cabinetry themselves are building work, outside this site. That leaves a plain choice between a refurbished package and a new one.
| Package | Price | Rate | Months | Monthly payment | Total paid |
|---|---|---|---|---|---|
| Refurbished chair, delivery unit and light | $16,850 | 11.6% | 36 | $556.45 | $20,032.20 |
| New chair, delivery unit and light | $29,400 | 10.4% | 60 | $630.47 | $37,828.20 |
The refurbished package is paid off two years sooner and costs $17,796.00 less in total; the new one asks $74.02 more each month but spreads a larger price over a longer life. A partner may set a shorter term on refurbished equipment, so the quote's age and service history are worth sending with the request.
Practice purchase records a buyer can request before an offer
Before any offer on a whole practice, a buyer can ask the seller for records that show what the practice produces and collects, and what it would take over:
- Production and collections reports by month for the last two or three years
- An active patient count, with the definition the practice uses for "active"
- The hygiene schedule: open slots and recall rates
- Each chair, delivery unit and imaging device, listed with its age and repair history
- The suite lease, with any clause on handing it to a new owner
- Staff agreements and any bonus or benefit promises
Illustration only, invented figures: a seller reports $1,240,000 of production and $1,153,200 of collections for the past year, a collection rate of 93.0% (our arithmetic). A gap between what is produced and what is collected is a question for the seller before it is a question for any lender.
Charlotte County, FL had 64 offices of dentists with paid staff in 2023, and they employed 486 people between them (CBP). The dental practices page covers buying a whole practice in more detail.
By Marbleland Advances · Updated
