1. Two main paths: SBA 7(a) or a specialty dental lender
SBA 7(a) loans are the most common route: government-backed, typically up to 90% loan-to-value, 10-year terms, rates that float with prime. Most banks that do dental deals run them through the SBA program.
Specialty dental lenders (banks and finance companies that only lend on dental and other healthcare practices) often move faster, understand practice cash flow natively, and sometimes offer 100% financing including working capital, because they underwrite the industry every day rather than occasionally.
2. What lenders actually look at
The practice's cash flow (SDE) relative to the debt service is the central number — lenders want to see the practice comfortably cover the loan payment plus a reasonable owner salary, with room to spare (a DSCR, or debt service coverage ratio, comfortably above 1).
They'll also look at your credit, any relevant experience, and — for larger or complex deals — a business plan or transition summary. First-time buyers are financed constantly; a strong practice with clean financials matters more than a long résumé.
3. Get pre-qualified before you shop seriously
A pre-qualification conversation with a lender (before you're under contract on anything) tells you your realistic budget and signals to brokers that you're a serious buyer — which matters when a good listing draws multiple interested buyers.
Pre-qualification is usually free and non-binding. It typically takes a conversation plus a light document pull, not a full underwrite.
4. Typical terms to expect
10-year amortization is standard for practice-only acquisitions; real estate, if included, is usually financed separately with its own term (sometimes 25 years) since buildings amortize differently than a service business.
Down payments range from 0-10% of the purchase price depending on the lender and the strength of the deal, with the balance financed. Rates vary by lender and by whether the loan is SBA-backed or a direct specialty-dental product.
5. What to have ready when you apply
Your own financials (tax returns, credit history) plus the practice's financials the broker provides once you're past the NDA stage: 2-3 years of P&Ls or tax returns, a collections trend, and the SDE / add-back schedule.
The cleaner and more complete the practice's financial package, the faster underwriting moves — this is one reason listings with a fully documented file close faster than sparse ones.