Frosthaven Funding helps Port Huron, Michigan dental offices request term loans, equipment financing and credit lines. St. Clair County, MI had 50 offices of dentists with paid employees in 2023 (County Business Patterns); a funding partner reviews each request and decides.
At a glance
- Offices of dentists, St. Clair County, MI (NAICS 6212)
50 employer establishments, 416 paid employees (CBP 2023)
- Dentist offices with fewer than five employees, St. Clair County, MI
10 of 50, or 20% (CBP 2023)
- Offices of dentists in ZIP 48060 (Port Huron, MI)
21 (ZBP 2023)
Dental business loans in Port Huron, MI: panoramic X-ray, sterilization centers and buy-ins
Dental business loans cover a wide range of purchases: panoramic and cone-beam X-ray units, sterilization centers, compressors and vacuum systems, chairs and delivery units, and the buy-ins that bring a new owner into the practice. Equipment can be financed on its own; a buy-in is a term loan.
For St. Clair County, MI in 2023, County Business Patterns counted 50 offices of dentists with paid employees, with 416 paid employees and about $23.3 million in annual payroll. Only 10 of the 50 (20%) had fewer than five employees, so most county dental employers carry a team of five or more.
Dental practice financing in Port Huron, MI: intraoral scanners, chairs and operatory plumbing
Dental practice financing for an operatory includes the intraoral scanner, the chair and delivery unit, the light, the cabinetry and the plumbing for water, suction and air. The first four can go on an equipment agreement. The plumbing and cabinetry are improvements to the space, usually on a term loan or within a tenant improvement allowance.
A partner looks at the practice's collections and how the new operatory will be filled: a new hygienist, an associate, or patients already waiting for appointments.
Ask the equipment vendor whether installation, training and the first year of software support are in the quote. Items left out of the quote are often the ones a practice ends up paying for from cash.
Dental practice purchase loans in Port Huron, MI: milling units, chairs and a second office
Dental practice purchase loans fund buying a whole practice: patient records, staff, equipment, the lease and the name. When the purchase includes milling units, chairs or plans for a second office, the request can separate equipment from goodwill so each carries the right term.
Partners usually ask for the practice's collections by year and by payer, the number of active patients, the purchase agreement and valuation, the lease and the buyer's production history.
Dental practice acquisition loans in Port Huron, MI: lasers, compressors and an office remodel
Dental practice acquisition loans and purchase loans are two names for the same thing; the difference is often a remodel planned from day one. A buyer planning to add lasers, replace compressors or remodel the office soon after closing can include that cost in the request, so the partner sees the full plan rather than a second request months later.
A remodel during the first year also affects production while rooms are out of use, which belongs in the forecast.
Dental practice loan refinance in Port Huron, MI: associate buy-ins and imaging upgrades
Refinancing a dental practice loan replaces an existing loan with a new one, usually to change the rate, the term or the payment, or to combine an earlier buy-in loan with new money for imaging upgrades. A partner reviews the existing loan's balance, payment history and any prepayment terms.
Before refinancing, compare the total remaining cost on the current loan with the total cost of the new one, including fees. A lower payment over a longer term can cost more.
Ask the current lender for a payoff letter before comparing, because the payoff figure, not the balance on the last statement, is what the new loan must cover.
Loans for dental practice around St. Clair County, MI: practice acquisitions and new operatories
Loans for a dental practice around St. Clair County fall into three groups: acquisitions and buy-ins (term loans), new operatories and imaging (equipment financing, with a term loan for the build-out), and short gaps such as a new dentist's insurance credentialing (a credit line or working capital).
ZIP Code Business Patterns put 21 of the county's 50 dentist employers in ZIP 48060 for 2023. Financing chairs, imaging and in-office milling goes deeper into the equipment side.
An invented associate buy-in and scanner purchase in Port Huron, MI
Illustration only, invented figures: an associate in a Port Huron dental office buys a share for $240,000 on an 84-month term loan at an invented annual rate of 8.75%, about $3,831 a month. The same year the practice adds an intraoral scanner for $38,000 on a 48-month equipment loan at an invented annual rate of 8.25%, about $932 a month (our arithmetic).
The buy-in payment comes from the associate's income, the scanner payment from the practice. Keeping them on separate agreements keeps that line clear for both sides.
By Frosthaven Funding · Updated