No Cash To Start With?
(How to arrange money for your clinic)
Just like any other business venture, to start a dental practice, you need financial investments. So the next question arises how to arrange that money?
- If you are from an influential family or a family with a background in dentistry, then you will get the initial investment from within the family. Many dentists join the family dental setup and start their dental career.
- However, what if, you do not have the luxury of such a financial backup. Then how do you raise money for your dental practice?
Suppose you have no cash with you. I mean no capital to start your dental practice.
Don’t think and expect your parents will give you the money.
Also, assume you do not have a place of your own. Also, no proper financial assistance from family and relatives.
As mentioned earlier, if you have these help, the job gets more comfortable. However, I want you to think and plan for the most rigorous way to make a clinic. That will make you more resourceful.
Once you have the plan of action to tackle the toughest scenario, then any other additional help will propel you to more success.
So the biggest question is
How can you arrange the Money?
Yes, you guessed it right – Bank Loan.
However, which type bank loan to take?
From which bank should I take the loan?
How much loan should I take?
Will I be able to pay back the loan?
What are the various parameters to consider while taking a bank loan?
Your mind will ask you so many questions.
A bank loan is the only way you can raise funds necessary for your clinic. Being a dentist is similar to being an entrepreneur who has to borrow money from the market for their ventures.
Bank Loans: If you are planning to take a bank loan to start your dental practice, then you have a difficult choice to make. You have to consider the banks that provide you a credit at a lower interest. However, the interest rate is not the only factor to consider. What are the points to consider when taking a bank loan?
Interest Rate: The most important point to check first. Your goal should be to get a loan from the best bank you can manage at a lower rate. So locking in a competitive fixed rate for the next seven to 15 years is your best option.
Loan Term: While taking a loan you should consider the most extended loan term available (around 10 to 15 years). Breaking the credit for longer years will lower the payments. If your dental practice keeps pace and shows growth, then you have the option to prepay the entire loan in short segments.
Pre-Payment Option: Pre-payment options vary from lender to lender. Loan repayment terms are less important in the early years as you open and build your new practice, but pre-paying your loan may become an option after your dental practice is no longer considered a start-up. In fact is now successful for some years and is looked upon by lenders as an established practice. However, this will vary from bank to bank.
As it is norm almost everywhere in the world, you might require a guarantor for availing loan from a bank. For that, you will need to take help of your family, who can be the guarantor or provide a mortgage against the loan.
Every country has its financial loan system regulations. So, where ever you are located, please do a proper research of the banks available on your location and the loan plans they provide. Choose the loan from the bank that you feel is the most suitable one for you (based on the points discussed earlier)
So now you are ready with the credit. The next step is to start building up your dental practice.
If you want to know more about the finances associated with running a dental clinic, then the suggested articles below will help you.