You’ve invested plenty of time and money to build your dental practice into a significant asset. Perhaps it’s time to put the equity you’ve accumulated to work for you in order to take advantage of business and growth opportunities. Tapping into your practice equity now can give you greater flexibility in optimizing your business and provide increased control over your financial future.
Here are 5 ways a practice equity loan can be put to work to build your business and long-term success.
1. Upgrade Your Office and Equipment
Keeping your office up-to-date in the midst of today’s rigorous competitive environment is a critical aspect of maintaining practice value and ensuring long-term success. Tapping into the equity you have already built into your practice gives you the leverage to purchase new equipment and upgrade or remodel your office as needed to stay current. Increasing your fee schedule a fair amount to compensate for your upgraded office can help offset your loan payments.
2. Expand Your Facility
Adding a new location or expanding an existing facility to meet your full potential for production is a significant financial and logistical undertaking. A practice equity loan enables you to fund this type of transaction without the added stress of trying to accomplish your goals while cutting corners. The additional income produced by an expanded facility or business operation should offset the cost of the equity loan.
3. Finance Your Retirement
If you have not yet set aside adequate funds for retirement, consider using a practice equity loan to help finance a retirement plan while your practice value is at its peak. By cashing out now, rather than at the time of practice sale, you can secure your practice value at its highest level. With guidance from your financial advisor, your equity can be placed in investments with a reasonable rate of return, earning extra income as you wind down your practice operation.
4. Invest in Additional Education
Have you always wanted to add a specialty to your service portfolio, but haven’t had the time or funds for supplementary education? Tap into your practice equity to fund the education you need in order to add skills that will be valued by your patients, such as cosmetic dentistry or pediatric services. You can also use the loan to pay for a temporary dental associate to provide basic treatment to your patients while you’re attending dental school.
5. Fund Partnership Transitions
Bringing an associate into the practice is another way to expand your service portfolio and treat a broader range of patients. A practice equity loan can give you the necessary cash to pay a new associate’s salary, benefits and potential contract fees while they are building their patient base. Likewise, if you have decided to bring a partner into the practice to share ownership responsibilities, a practice equity loan can help fund the additional staff, space, and equipment needed to bring your partner onboard. Of course, you will need to work out a plan with your new associate or partner to ensure you are compensated for your cash outlay.
Accessing your practice equity can be a relatively simple matter when you work with a bank or financial institution specializing in dental practice financing. Loans can range up to $500,000 depending on your practice revenue, with no appraisal required.
Practice equity loans are designed to help dentists like you grow their practice success. So don’t just dream about what could be. Contact your Wells Fargo practice financing specialist, and take the first step toward making it happen.
All financing is subject to credit approval.
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