Best Financing Options for Dental Practices, Compared
The short answer: a bank term loan is the cheapest option on paper if your practice has strong time-in-business, a high credit score, and can wait weeks for a decision. A merchant cash advance (MCA) or ByzFlex revenue-based revolving capital is the faster path if you need cash in days, don't have collateral to pledge, or a bank already said no. Most dental owners weighing this decision aren't choosing in a vacuum — they're choosing under a deadline: payroll, a lab bill, an equipment repair, or a Q4 patient surge that needs supplies stocked now.
- Bank term loans are cheapest but slowest and collateral-heavy — weeks to fund, strong-credit-only | MCA is a purchase of future receivables priced with a factor rate, funded in as little as 24 hours, no collateral | ByzFlex is revenue-based revolving capital for ongoing, repeat needs — not a line of credit | Byzfunder underwrites on business bank deposits, not billed insurance claims | Byzfunder funds directly from its own balance sheet — one team that funds you
The Options a Dental Practice Owner Actually Weighs
There are really three paths for a practice that needs working capital, and they solve different problems.
Bank or SBA term loans are the traditional route — and for a practice with several years of tax returns, a high credit score, and time to spare, they can be the lowest-cost option. But they're not built for speed: underwriting a bank term loan typically takes weeks, often requires collateral or a personal guarantee tied to real assets, and leans heavily on time in business and credit history. A practice that's been open under two years, carries a lower credit score, or needs funds this week is often declined outright — not because the practice isn't viable, but because bank underwriting doesn't read deposit consistency the way it reads a balance sheet.
Merchant cash advance (MCA) is a purchase of a portion of a practice's future receivables, priced with a factor rate set at funding — not a loan, not an APR, not an accruing interest rate. Byzfunder underwrites MCA against trailing business bank deposits: PPO and insurance remittances, patient payment-plan collections, and copays that actually land in the account. There's no collateral requirement, and a 525 FICO score is the floor, not a target. It's the faster option for a single, one-time need — stocking supplies, covering a payroll gap, funding equipment repair — because it's sized and funded off a bank statement review rather than a credit committee process.
ByzFlex is revenue-based revolving capital: an approved limit a practice draws against and repays on an ongoing basis as revenue comes in, rather than a single lump-sum advance. It fits a practice managing a recurring, not one-time, cash flow gap — the ongoing insurance reimbursement lag that shows up every month, not just this one. It is not a line of credit; it's structured and repaid against revenue, which is why it scales down naturally in a slower month instead of demanding a fixed payment regardless of collections.
Comparison: Dental Practice Financing Options
| Bank / SBA Term Loan | Merchant Cash Advance (MCA) | ByzFlex Revenue-Based Revolving Capital | |
|---|---|---|---|
| Speed to funding | Weeks | As fast as 24 hours after approval | As fast as 24 hours after approval |
| What's checked | Tax returns, credit score, time in business, collateral/personal guarantee | Business bank deposits, time in business, credit | Business bank deposits, time in business, credit |
| Collateral | Often required | None | None |
| Repayment structure | Fixed monthly payment | Fixed multiplier of the advance (factor rate), repaid as a fixed remittance | Draws repaid on an ongoing, revenue-based basis |
| Best for | Well-established practices with strong credit and time to wait | A one-time need — payroll, supplies, equipment repair, a Q4 stock-up | A recurring need — ongoing reimbursement lag, seasonal cash flow swings |
| Minimum FICO (Byzfunder) | Bank-set, typically higher | 525 floor | 525 floor |
| Minimum time in business (Byzfunder) | Bank-set, typically longer | Typically 1 year | Typically 1 year |
These are program-level comparisons, not a quote for any specific practice — actual terms and eligibility depend on the individual file.
Why a Direct Funder Fits a Bank-Declined Dental Practice
A practice that gets a bank decline isn't necessarily a bad credit risk — it's often a timing mismatch. Dental production is billed weeks before insurance actually pays it out, so a practice's tax-return-based financial picture can look thinner than its actual cash position. Bank underwriting reads production and billed claims; deposit-based underwriting reads what's really moving through the account.
Byzfunder funds directly from its own balance sheet — one application, one underwriting decision, one team that funds you. That matters for a dental practice that's already been declined once: a direct review of bank deposits can surface a much stronger picture than a bank's production-and-tax-return underwriting did. Byzfunder has funded $1.75B+ to more than 30,000 small businesses since 2019, including dental and other healthcare practices, with amounts up to $500,000 depending on file strength.
How to Apply
- Submit 3 months of business bank statements.
- Provide basic practice information — entity type, time in business, single-location or DSO-affiliated.
- Get a decision, often same-day for a complete file.
- Funds can land in as little as 24 hours once you accept an offer.
Frequently Asked Questions
What's the best financing option for a dental practice?
It depends on the need. A bank term loan can be the lowest-cost option for a well-established practice with strong credit and time to wait weeks for a decision. An MCA is the faster path for a one-time expense, sized off business bank deposits with no collateral required. ByzFlex fits a recurring need — like an ongoing insurance reimbursement lag — better than a one-time advance, since it's revenue-based revolving capital rather than a single lump sum.
What financing options are available for dental practices?
The main paths are bank or SBA term loans, merchant cash advances, and revenue-based revolving capital like ByzFlex. Byzfunder offers MCA and ByzFlex, both funded directly from its own balance sheet and underwritten primarily on business bank deposits rather than billed insurance claims or tax returns.
How do I finance a dental practice if I've been declined by a bank?
A bank decline is often a timing issue, not a viability issue — banks read tax returns and billed production, while an MCA or ByzFlex is underwritten on what's actually landing in your business bank account. Byzfunder's FICO floor for MCA is 525, no collateral is required, and a complete file with 3 months of bank statements can get a same-day decision.
Does a dental practice need collateral to get funded?
No. MCA and ByzFlex are both unsecured — no equipment, real estate, or lease is pledged. MCA is a purchase of a portion of future receivables, priced with a factor rate; ByzFlex is a revolving draw against an approved limit. Both are underwritten on deposit history and credit rather than collateral.
How fast can a dental practice actually get funded?
For MCA and ByzFlex through Byzfunder, funds can land in as little as 24 hours after you accept an offer, with same-day decisions possible on a complete file. A bank or SBA term loan typically takes weeks from application to funding.
Learn more about how Byzfunder underwrites dental files: Dental Practice Funding: How Dental Practice Owners Get Working Capital Fast.
We fund dental practices in all 50 states, directly from our own balance sheet — one underwriting decision, one team that funds you.
Byzfunder (ByzFunder NY LLC) funds small businesses directly from its own balance sheet. Advance amounts, factor rates, and repayment terms vary by applicant file and are not guaranteed. This is educational content, not an offer or commitment to fund. For California, term loans are arranged or made pursuant to the California Financing Law — License Number: 6031098.