A New Look at Borrowing Money

Whether you borrow money personally or for your dental practice, a fresh perspective is always good to consider. We have been taught that effectively borrowing money for cars, equipment, mortgages or really anything you want is only a function of finding the best interest rates.

A more important point to consider is that we finance everything we buy! We end up paying interest to a financial institution or we forgo earning interest on our own money by paying cash for large ticket items.

The truth is, “people don’t know what they don’t know.” There are ways for individuals to finance purchases on their own, while paying the principal and interest back to themselves. It is an old story but now with a new twist.

Most people understand that a dental practice needs to “Capitalize” itself. This process helps them become more profitable sooner. Most dental practice’s however still pay out money to banks for loans. These dollars are called “transferred dollars”. Transferred dollars are payments sent to a financial institution and the dental practice will never receive the principal nor the interest back. These transferred dollars will amount to hundreds of thousands of dollars that institutions collect and you as the practice owner will never get back.

If you capitalize your dental practice, you can direct all of those payments back to yourself. In addition to practice loans, payments on any personal loans, i.e. autos, college, credit card payments, could go to you instead of the bank.

The planning is simple; a review of cash flow, loans and assets will determine your ability to capitalize your dental practice. Once your plan is in place, in most cases, you can start paying debt off and redirect payments back to yourself immediately.

Take a fresh perspective on financing your own dental practice – Contact me to get started!