There are more than 5000 dentists in Quebec. A lot of them would like to acquire their own practice and-or buy state-of-the-art equipment. Their first move? Ask for their banker to help them finance their project at best rate.
But, before getting involved with its bank for a loan or by cash money, it’s important to redefine elements and every existing financing options.
Here are some questions to ask before opening its dental office:
Buy or rent a dental office?
1- If you have to free some working capital
Your dental practice purchase can gives you an investment freedom for your company. By releasing some working capital, you reduce your monthly expenses linked to a rent. Thanks to these savings, you can reinvest in equipments or expenses usefull for your practice. A practice acquisition allows you to extend your heritage and to avoid rent’s constraints ; restrictions, rent increase, etc…
2- You don’t have enough working capital
If your start your activity, there are low chances that you have a suffisant working capital to buy your dental practice. In that case, renting your practice is the best option. Renting reduces risks on your company future because you will be able to leave your premises if you encounter difficulties.
Rental can also be temporary until you find a professional office which fits more your needs or to save sufficient working capital to buy one.
With or without contribution?
There is no answer to this question. Your financing plan balance depends on the balance between your financial contribution and your monthly payments. The higher your financial contribution will be, the more it will limit your attachment to your credit and limit the risk taking.
Alone or with an associate?
The first obvious advantage to get associated with someone is to have a most important financial contribution and increase the capital of the company, but also offer a wider range of services adding differents activities but related. This association can also allows you to enjoy a dental office bigger by dividing your rentals fees.
Lease or loan?
The lease or loan topic when it comes to finance a practice or its equipment has already been the subject of an article on this website. It’s important to know that you could get lower taxes and you should pay attention to the interest rate offered to you. To know more about it, you can read our article: Financing you equipment loan vs lease.
Which financement to choose for your dental equipment?
To finance your dental equipment of your practice (CEREC, softwares, chairs…), you could be tempted to get a financement by cash. We highly advise to get a lease. In addition to saving cash and reinvest money in other projects, it ensures you to always have the state-of-the-art equipment.
As a financing expert, MediCapital helps canadian dentists with lease offers to buy medical equipments at attractive rates and tax deductible.
What can Medicapital do to finance my office?
To finance an office we can ask different financial institutions. Medicapital is different by its expertise in finance and its dental knowledges. Its strength? Bring altogether its skills in finance, its privileged relationships with medical equipment vendors and its knowledges in medical. Since 35 years, dozens of dentists in Quebec and in Canada trusted us. Our team is here to advise you, to accompany and to offer financing solutions tailored to your needs.
You’d like more information about financing? Find out more about the financing services MediCapital offers to healthcare professionals.
