Hi {{firstname|there}},
Once you’ve found a practice that feels right, the next big question is usually the most intimidating one- how do I fund this purchase?
Many dentists see financing as a hurdle. In reality, it’s a strategic tool and when structured correctly, it can protect your cash flow and support long-term growth.
How dental practice financing usually works
Most buyers use acquisition finance to fund a large portion of the purchase. In the UK, lenders typically offer:
Up to 70–100% of goodwill value
A buyer deposit of around 10–20%
Loan terms commonly ranging from 10 to 20 years, depending on risk profile
But approval isn’t just about numbers. Banks assess several factors, including:
Your clinical experience and associate track record
Personal credit history and financial stability
The practice’s historic profitability and cash flow
Sustainability of NHS contracts or private income
Your business plan and growth strategy
In short, lenders want confidence that both you and the practice can generate stable returns.
Why the first offer isn’t always the best one
Many dentists accept the first financing offer they receive. That’s understandable but not always wise. Interest rates, repayment structures, early repayment penalties, and flexibility clauses can differ significantly between lenders.
Small differences in terms can translate into tens of thousands in additional costs over the life of the loan. That’s why it’s important to compare options carefully and choose funding that fits your long-term personal and professional goals not just what gets the deal done fastest.
Don’t forget the “hidden” costs
Beyond the purchase price, smart buyers also budget for:
Legal and due diligence fees
Stamp duty and professional advisory costs
Equipment upgrades and IT systems
CQC compliance requirements
Initial working capital for staff and supplies
Planning for these early helps avoid financial pressure in your first few months of ownership.
At Samera, we help buyers structure funding in a way that balances affordability, risk, and growth potential not just short-term approval. If you’re preparing to buy, our Buy a Dental Practice advisory service supports dentists through financing strategy, lender preparation, and deal structuring:
https://samera.co.uk/service/buy-a-dental-practice/
Speak soon,
Arun