Dental News

Why Now Is A Great Time To Build Your Practice

By |January 5th, 2015|

If you’ve been thinking about building your own dental practice, now’s a great time to jump in.  Market conditions continue to support favorable mortgage rates and construction costs. In addition, owning your commercial property still appears to be a reliable and potentially profitable investment for your future.
Favorable commercial property values
Commercial property values are at their lowest level in decades, providing purchasers an opportunity to obtain far more for their investment than they could have just a few years ago. Plus, property values are likely to increase over time as the economy recovers, making commercial real estate a relatively secure long-term investment. Commercial property can also become a potentially valuable source of retirement revenue – either through outright sale of your practice and the underlying property, or through sale of your practice and lease of the property, creating a life-long revenue stream.
Historically low mortgage rates
As with residential properties, commercial real estate mortgages continue to be at historically low levels. Today it is […]

Know The Key Players In Your Loan Process: Borrower

By |December 22nd, 2014|

When you apply for financing for a dental practice purchase, startup or construction project, you’re engaging not only your lender, but a whole group of specialists who bring your loan to fruition. Understanding the roles of the players who create and deliver your loan package can help you gather the appropriate information and more easily navigate the financing process.
So who are the players in the loan process?
Borrower
As the borrower, your role is to make sure there are no holes in your financial story. The more complete your application package is, the easier you will make the process for the bank, and for you. Furthermore, a clean, well-organized and complete package can leave a positive impression that may serve you well in the future when seeking additional funding.
If you are requesting funding for a startup dental practice, be sure to include a thorough business plan. For a practice acquisition, expansion or construction loan or refinancing package, lenders typically require your business […]

Know The Key Players In Your Loan Process: Closer

By |December 17th, 2014|

When you apply for financing for a dental practice purchase, startup or construction project, you’re engaging not only your lender, but a whole group of specialists who bring your loan to fruition. Understanding the roles of the players who create and deliver your loan package can help you gather the appropriate information and more easily navigate the financing process.
So who are the players in the loan process?
Closer
Once a commitment is made by the institution to provide financing, the closer assembles, verifies and prepares closing documents in order to complete the loan transaction. The closer arrives at detailed and accurate financial numbers, prepares all required paperwork for the borrower to sign, and walks the borrower through documentation to make sure everything is understood and the deal is successfully completed or closed. The closer also ensures proper funding of the loan.

Know The Key Players In Your Loan Process: Chief Credit Officer

By |December 16th, 2014|

When you apply for financing for a dental practice purchase, startup or construction project, you’re engaging not only your lender, but a whole group of specialists who bring your loan to fruition. Understanding the roles of the players who create and deliver your loan package can help you gather the appropriate information and more easily navigate the financing process.
So who are the players in the loan process?
Chief Credit Officer
The chief credit officer holds a senior management level position, often working in conjunction with the bank’s board of directors and senior officers to ensure the quality of the bank’s lending portfolio. The chief credit officer has the final say on whether or not to lend, providing ultimate approval or disapproval of each loan application that comes through the bank’s door. An experienced CCO can review and approve or reject a loan application in about 48 hours. The chief credit officer may also create policies and guidelines for granting credit to the […]

Know The Key Players In Your Loan Process: Underwriter

By |December 1st, 2014|

When you apply for financing for a dental practice purchase, startup or construction project, you’re engaging not only your lender, but a whole group of specialists who bring your loan to fruition. Understanding the roles of the players who create and deliver your loan package can help you gather the appropriate information and more easily navigate the financing process.
So who are the players in the loan process?
Underwriter
The underwriter is perhaps the most influential person in the loan process. He or she researches and prepares your financial “story” and presents it with the loan package to the credit officer. The underwriter develops a detailed credit memo summarizing the background of the borrower and specifics of the loan package, and then presents the credit memo to the credit officer who approves or rejects the loan request. Key responsibilities of the underwriter include verifying that all information provided by the borrower is accurate and assessing the eligibility of the borrower to receive the […]

CEREC Annual Owners Symposium

By |October 28th, 2014|

Over the weekend, Live Oak Bank took part in the CEREC Symposium, featuring 900 of the most intuitive, technology-focused dentists in the country. It was a great conference held at the Aria Hotel & Casino in Las Vegas. We visited with a few of our existing customers; it was amazing to hear about their success and practice growth over the last couple years.  Looking forward to heading back out to Scottsdale, AZ for next year’s conference!

Equip Your Practice Now And Save With Tax Incentives III

By |September 23rd, 2014|

Qualifying Purchases

Most tangible goods including off-the-shelf software and business-use vehicles (with some restrictions) qualify for the Section 179 deduction.  Equipment and software must be placed in service during the tax year for which the deduction is taken in order for the deduction to apply. But you don’t necessarily have to pay for the equipment in the year it is deducted. You can purchase and install new equipment in December, write off the full purchase amount in 2011, and start paying the financing on your equipment in 2012 using some of the savings from your deduction!
 
So now is an excellent time to upgrade your practice with the latest in dental equipment and software. It’s unlikely you’ll find a better opportunity to build your business with significant financial assistance from the U.S. Government.

Equip Your Practice Now And Save With Tax Incentives II

By |September 15th, 2014|

How Section 179 Works
Under Section 179, businesses can deduct the full cost of qualifying equipment and/or software purchased or financed during the tax year, up to the maximum Section 179 Deduction Limit.  “Bonus” Depreciation is offered on new equipment purchase amounts above the Deduction Limit, and there is a cap to the total amount of equipment purchases that qualify for the deduction.

–        2011 Deduction Limit — $500K (up from $250K previously).  Deduction can be used on new and used equipment, including new software.

–        2011 “Bonus” Depreciation – 100% (up from 50% previously).  Taken after the $500K deduction limit is reached.

–        2011 Limit on equipment purchases — $2 million (up from $800K previously).

There are limits to the Section 179 deduction.  In addition to the cap of $500,000 in deductions for 2011, the deduction begins to phase out dollar-for-dollar after $2 million is spent by a given business (making it a true small and medium-sized business deduction).

Sample Section 179 Deduction (adapted from www.section179.org ):

Dental Customer Spotlight: Dr. Mark – North Carolina

By |September 9th, 2014|

Dental Customer Spotlight

Dr. Mark, an Oral Surgeon in North Carolina shares his experience working with Live Oak Bank and building his practice from the ground up.

Equip Your Practice Now And Save With Tax Incentives

By |September 8th, 2014|

Tax Incentive for Small Business
Section 179 is an incentive created by the U.S. Government to encourage business owners to invest in their companies through equipment purchases.  The goal of the legislation is to provide genuine tax relief for small businesses, and since its introduction millions of small businesses have taken advantage of Section 179 and are gaining real benefit.  Under the code, if you buy or lease qualifying equipment, you can deduct the full purchase price of the equipment from your gross income, saving you potentially thousands of dollars on the actual cost of the equipment.
Typically businesses can write off major purchases over a period of five years. For example, equipment that costs $100K might be depreciated at a rate of $20K per year for five years. But it’s a greater advantage to be able to deduct the entire cost of equipment in the year the purchase was made. Businesses might even make more equipment purchases with this type of […]

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