Dental News

Document Preparation to Begin the Loan Process

By |March 25th, 2014|

Buying, building or expanding your dental practice is a significant project that requires a good deal of planning. Part of the initial planning process includes getting pre-qualified for a loan amount that will cover both your project development and working capital costs. Pre-qualification can typically take from three to five business days, provided you have adequate documentation prepared for your lender prior to your meeting.

Before approving a loan for your practice project or purchase, your lender wants to know that you have adequate experience to manage your business, sufficient collateral to cover the lender’s risk, and enough cash flow to repay your debt. Following is a list of the documentation typically required when applying for a commercial loan for a dental practice purchase, expansion, remodel or refinance, or a new construction project.

Personal Financial Statement. Your lender will ask you to complete a personal financial statement showing your income, the value of your assets (such as your home, vehicles and savings […]

Dental Customer Spotlight: Sultan & Dr. Mehjabeen

By |March 25th, 2014|

Dental Customer Spotlight

Sultan and Dr. Mehjabeen share their experience about working with Live Oak Bank.

Dental Customer Spotlight: Dr. Shawn – California

By |March 21st, 2014|

Dental Customer Spotlight

Dr. Shawn shares his experience about working with Live Oak Bank.

Abundant Opportunities To Own Business Property

By |March 18th, 2014|

Should You Jump In?

If you’ve ever thought of owning the property underlying your dental practice, now is the time.  The commercial real estate market has stabilized over the past few years and there is an abundance of exceptional properties available for purchase.  With relatively stagnant sales during the Great Recession, it is now truly a buyer’s market with commercial real estate prices lower than they have been in decades – down 30% from the national peak* before the crash in 2008.  In addition, properties are available in prime locations.  Small business owners are starting to invest in premium retail properties for their private enterprises.

Many commercial real estate owners are also realizing a cost savings in building out their properties.  The competition among builders for CRE construction jobs has driven costs down, with some builders significantly cutting their margins in order to maintain payrolls.  Dental office designers and architects are also trimming costs as they compete for fewer projects. As a […]

It Takes a Dream Team To Construct a Dream Practice

By |March 12th, 2014|

When it comes to building your dream practice, the single most important step is an experienced dream team to help you develop and manage your project. A dream team helps you create a sound plan for your practice development, ensuring you get the outcome you want while keeping your objectives and project on track. Who makes up the dental practice dream team? Depending on your specialty, it should include your lender, architect, general contractor, equipment supplier, and a real estate agent if you’re purchasing property. The best teams communicate with one another during the development process. Most importantly, team members should be experienced in dental office development and construction because this will save time and money in the long run.

Click here for the full article: Dream Dental Practice Article

Maintaining Practice Value Series IV

By |March 10th, 2014|

Finally, and perhaps most importantly, the last step to building and maintaining practice value is maintaining positive cash flow. Nothing will sink your practice value faster than poor cash flow. Cash flow can be defined as total monthly income minus the total cost of operating expenses. A practice with cash flow equaling 40% or more of total income has flexibility to hire new associates, purchase new equipment, and ride out market fluctuations. But practices with cash flow of about 25% of total income may be struggling to meet monthly payments and lack the flexibility to take advantage of new opportunities. Costly salaries, rent, and debt are the biggest contributors to poor cash flow. If your debt is over three years old, consider taking advantage of today’s lower interest rates and refinancing or consolidating debt to improve your cash flow.

Click to read  Maintaining Practice Value Series.

Maintaining Practice Value Series III

By |March 3rd, 2014|

Step 3 to building and maintaining your dental practice value is creating a technology investment plan. Keeping your practice equipment and technology up-to-date is critical to the future value of your business – but more importantly, it’s imperative to the comfort and well-being of your patients. Advanced technology usually means more and better options for patients. When you can deliver better options, your patients have a strong incentive to keep coming back.

Consumers today are savvy shoppers and understand what current “best practices” are. With social websites that encourage the sharing of personal ratings of business services, they may have instant input on what’s available from your competition. If you are not staying current with the latest offerings such as laser injections and teeth alignment services, your practice may lose not only some of its equity value, but its stable patient base as well.

Regularly investing in new advancements in dental equipment is an important means of remaining competitive while meeting your patients’ needs for […]

Maintaining Practice Value Series II

By |February 24th, 2014|

Step 2 to building and maintaining your dental practice value is designing your practice with longevity in mind. If you are building or remodeling your practice, create a floor plan and office design with intrinsic longevity so they will still be appropriate years from now when it’s time to sell. Use an open floor plan that ensures ease of traffic flow. Build in the capacity to expand services as needed with extra operatory, laboratory, equipment or storage space. Use furnishings that are classic in design and colors that are timeless. Consider incorporating environmentally friendly materials and systems that save energy and improve air quality, as these will positively impact the value of the practice. While poor practice design may not be a deal-breaker at the time of sale, a carefully thought-out floor plan and interior structure can add perceived value to the practice for the right buyer.

Click to read  Maintaining Practice Value Series.

Maintaining Practice Value Series I

By |February 14th, 2014|

It’s never too soon to start thinking about how to maintain your dental practice value for future sale, even if you’re just starting your first practice.  Despite all of your advanced planning, you may find yourself expanding to a larger location, opening a second practice, or ready to retire sooner than expected. The value that your practice holds at the time of sale could make the difference between a successful transition, and a challenging one.

Over the next month, we will share four key steps to building and maintaining practice value. First, start with location. Just as with your home purchase, a good portion of your practice value is based on “location, location, location.” If you are planning to build or purchase your practice, spend as much of your investment as you can afford to secure a premium practice location. Nothing speaks more to the quality of services your patients can expect than the location of your practice.

Look for a professional neighborhood with […]

Series: Advantages of Owning a Building I

By |February 12th, 2014|

This 5 part educational series will begin with the advantages of owning commercial property. Please follow us in the coming weeks to learn about the additional benefits of being a property owner.

Most business owners eventually confront the question of whether to purchase or lease their office space. There are many factors to consider in making this important decision. For new dental practitioners who are uncertain of future space needs and want to ensure maximum cash flow as they grow their business, leasing may be a wise option. But for new or seasoned practice owners with a strong financial profile, a clear picture of future growth, and the ability to take advantage of the tax benefits of ownership, a commercial real estate purchase can provide a solid foundation for growing the business.

1.) Historically Low Prices

Commercial properties for dental practices are far less expensive today than they were before the recession. In some areas, it may be ultimately less costly to purchase and […]

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