Business Loans and Dental Practice Finance for UK Dentists

Getting started is straightforward. Fill in our enquiry form or book a free consultation with one of our dental finance brokers and we will be in touch to discuss your options. We will assess your needs, guide you through what documentation is required and get to work sourcing the best deals available.

There are several types of finance available depending on what you need the money for.

Acquisition Finance

Acquisition finance funds the purchase of an existing dental practice. Most lenders will fund between 70% and 100% of the purchase price depending on the strength of the practice accounts, your clinical track record and the quality of your business plan.

Associate Buy-in Finance

Used when an associate is buying a minority stake in or fully taking over the practice they work in. Lenders assess buy-in applications based on your existing relationship with the practice as much as the practice accounts themselves, so the structure of the application matters.

Practice Start-up Finance

Covers the costs of opening a squat practice from scratch, including premises, fit-out, equipment, staffing and working capital. Lenders typically fund up to 70% to 80% of total start-up costs and place significant weight on your clinical track record and business plan.

Asset Finance

Used to purchase equipment such as dental chairs, scanners and CBCT machines. Asset finance lets you spread the cost over a repayment term rather than using working capital in one go, and can often be arranged quickly.

Property Finance and Commercial Mortgages

Used to buy the freehold of a practice premises. Commercial mortgages for dental properties are assessed differently to residential mortgages and can typically be repaid over fifteen to twenty-five years.

Refinancing

Refinancing replaces your existing loan with a new one on better terms. If you took out a practice loan two or more years ago, reviewing and refinancing could reduce your monthly repayments, lower your total interest cost or release equity for reinvestment.

Tax and VAT Loans

Spreads the cost of an unexpected tax or VAT liability over monthly instalments rather than paying it in a single lump sum, protecting your working capital and cash flow.

Working Capital Loans

Covers day-to-day operational costs when cash flow is under pressure. Rather than drawing on reserves in one go, a working capital loan lets you spread the cost across the year.

Dental Practice Mergers

Finance and advisory support for dentists merging with or acquiring another practice. Merger finance is complex and the valuation and deal structure need to be right before any borrowing is arranged.

Eligibility depends on several factors including your clinical track record, personal financial history, the strength of your business plan and your ability to meet repayments.

Lenders generally view dental practices as lower-risk businesses than most, which works in your favour. NHS income in particular is viewed very favourably by lenders as it provides guaranteed, recurring revenue.

We can assess your eligibility quickly and tell you what your realistic borrowing options are before you formally apply.

Lenders will want to see a range of information and documentation. It is essential that you get this step correct. The lenders will reject your application if the projections are wrong, the business plan is poorly done, you have a poor financial record, and that’s just a few reasons.

You will need to provide:

Personal   

• Personal Profile Form – details income and expenditure
• Personal Banks Statements – last 6 months   
• Last 3 years associate accounts
• CV

Business

• Last 3 years practice accounts
• Practice Management information – if available
• Practice sales particulars
• Business plan
• Projections may be required

The banks will want you to be able to provide evidence of:

• Your previous earnings in your healthcare field.
• How you handle personal finances.
• Your living situation, whether you own or rent your home.
• Career in healthcare so far and any management experience.
• Ability to repay any loan.
• Personal savings
• Tax payment records.

To find out more about making sure your loan application is successful, click here.

Yes. A previous rejection does not prevent you from applying again.

If you have had a business loan application rejected in the recent past, you may need to improve your credit rating and financial standing before you can reapply.

In many cases a rejected application simply means the wrong lender was approached, or the application and business plan needed strengthening. We work with a wide range of lenders including specialist healthcare lenders who assess applications differently to high street banks.

We can review what went wrong previously and advise on the best route forward.

The process is more straightforward than many dentists expect, particularly when you work with a specialist broker who knows what lenders want to see.

The most common reasons applications fail are a weak business plan, incomplete financials or approaching the wrong lender.

We handle the lender communication, structure the application correctly and negotiate the terms on your behalf, which significantly increases your chances of a successful outcome.

The amount you can borrow depends on your personal financial situation, the type of loan and what you intend to use it for.

For practice acquisitions, lenders will typically fund between 70% and 100% of the purchase price depending on the strength of the practice accounts and your track record.

For squat practices, lenders generally fund up to around 70% to 80% of the total start-up costs.

Asset finance can cover the full cost of equipment in many cases.

Use our calculator above to estimate repayments based on your borrowing amount.

Interest rates vary depending on the type of loan, the lender and your individual circumstances.

As a general guide, acquisition loans for established dental practices typically attract rates of around 2% to 3% above the Bank of England base rate.

Start-up loans tend to attract slightly higher rates, typically 4% to 5% above base rate, reflecting the higher risk to the lender.

Asset finance rates vary by lender and equipment type.

We negotiate rates on your behalf across the whole market to make sure you get the best available terms for your situation.

A fixed interest rate means your repayments stay the same throughout the agreed fixed period, regardless of changes to the Bank of England base rate.

This makes budgeting more predictable and protects you if rates rise. The trade-off is that you will not benefit if rates fall during the fixed period.

A variable interest rate moves in line with the Bank of England base rate. This means your repayments could fall if rates drop, but could also rise if rates increase, making your payment schedule harder to predict.

Variable rate loans can be a good option when rates are high and expected to fall, but carry more risk in an uncertain rate environment.

In most cases repayments begin the month after you receive the funds.

However, we can often negotiate a repayment holiday of between six and twelve months, which gives you time to generate revenue from the practice before repayments begin.

This is particularly useful for squat start-ups or acquisitions where there is a period of setup before the practice reaches full capacity.

Term length depends on the type of loan and what you negotiate.

Bridging loans are typically repaid within twelve months.

Short-term loans are usually repaid within two years.

Long-term loans such as acquisition finance or commercial mortgages can run for fifteen to twenty-five years.

Generally speaking, a longer term means lower monthly repayments but a higher total interest cost over the life of the loan.

No. Samera Finance is a commercial finance broker, not a lender.

We use our network of contacts across the UK lending market to find the best available loans and negotiate the best terms on your behalf.

We are authorised and regulated by the Financial Conduct Authority and are a member of the NACFB, the National Association of Commercial Finance Brokers, which sets professional standards for commercial finance brokers in the UK.

A commercial finance broker acts as an intermediary between you and the lender.

Rather than approaching one bank directly, a broker gives you access to the whole market, improves your chances of a successful application and negotiates better terms than most dentists could achieve alone.

Samera Finance specialises exclusively in the dental sector, which means we know which lenders are most likely to approve your application and what a strong dental practice loan application looks like.

Yes. Dental associates can access finance to buy into or fully acquire a practice, fund a squat start-up or purchase equipment.

Lenders assess associate applications based on your clinical track record, earnings history and the strength of your business plan rather than existing practice ownership.

If you are looking to buy into the practice you currently work in, buy-in finance is structured differently to a standard acquisition loan and we can advise on the best approach for your situation.

A poor credit history makes borrowing more difficult but does not necessarily prevent you from securing finance.

Some specialist healthcare lenders take a more flexible approach to credit history than high street banks, particularly if the practice accounts are strong and the business plan is credible.

In some cases it may be worth taking steps to improve your credit rating before applying. We can assess your situation honestly and advise on the most realistic path forward.

Timescales vary depending on the type and complexity of the loan.

Asset finance can sometimes be arranged within a few days.

Acquisition finance typically takes between four and eight weeks from application to completion, depending on how quickly the required documentation is provided and how responsive the lender is.

We manage the process and chase lenders on your behalf to avoid unnecessary delays.

Not always. Some lenders will fund up to 100% of the purchase price for a well-structured acquisition with strong practice accounts and a credible applicant.

However, having a personal contribution available generally strengthens your application and may result in better interest rates.

Not all lenders offer 100% finance and those that do will apply stricter criteria.

We know which lenders are most open to higher funding levels and can structure your application to give you the best possible chance of securing the terms you need.

Yes, and it is something many practice owners overlook.

If you took out a loan two or more years ago, the terms you agreed may no longer be the most competitive available.

Refinancing replaces your existing loan with a new one on better terms, which can reduce your monthly repayments, lower your total interest cost or release equity for reinvestment.

We regularly review existing loan arrangements for clients and negotiate improved terms with lenders across the whole market.

A secured loan is one where you borrow against the value of an asset, typically a property. This means that if you fail to meet repayments, the lender can claim that asset to recover their money. Because the risk to the lender is lower, secured loans generally come with better interest rates and longer repayment terms.

An unsecured loan does not require you to put up an asset as collateral. This makes it more accessible if you do not own a property or do not want to risk an asset, but lenders typically charge higher interest rates to compensate for the increased risk they are taking on.

For most dental practice acquisitions and commercial mortgages, lenders will require security. For smaller loans such as asset finance or tax loans, unsecured options are more commonly available. We can advise on which structure is most appropriate for your situation and which lenders are most likely to offer the best terms for each.