Читать книгу Building or Refreshing Your Dental Practice - American Dental Association - Страница 10

Two of the most common sources for dental loans are banks and health care finance companies. There are many differences.

Most banks offer a variable floating rate, a fixed percentage over the prime rate, which will fluctuate with the prime rate. Health care finance companies, on the other hand, offer a fixed rate with simple interest. Health care finance company rates will be initially higher than those from a bank. When you assume the risk, with a variable floating rate, the bank is covered. When health care finance companies assume the risk, with a fixed rate, you’re covered. Your payoff with a fixed rate is the security that your monthly payment won’t change.

Banks will often ask for a 10 to 20 percent down payment of the amount borrowed. Health care finance companies require little or no down payment. Banks typically ask for collateral, such as a home or property. In most cases, health care finance companies will use the dental equipment or practice as collateral.

Bank loans and most health care finance companies can tie up your credit line for future purposes, such as personal loans. Because there are exceptions to this rule with some health care finance companies, check to see if any are willing to keep business and personal credit lines separate, as long as you don’t default. If you decide later to purchase a home, for instance, your business loan will not appear on your credit report.

Banks add points to cover closing costs, attorney fees, etc. Closing costs will increase the bank’s adjusted annual percentage rate (APR) when compared to a fixed rate. Health care finance companies have a minimal fixed-rate filing fee.

Health care finance companies have experience in dental loans. They know that only a small percentage of dentists default on their loans. Commercial loan bankers view you as “new business,” and their default rate for all new businesses is very high. As a result, funding a bank loan can involve significant red tape and paperwork. Funding with a health care finance company is typically less burdensome.

When financing a fixed-rate mortgage, by law the lender must provide you with a “truth in lending statement,” which explains the adjusted annual percentage rate (with closing and other costs factored in). What’s more, it clearly explains the total cost over the life of the loan. When banks offer a variable floating rate, they are unable to tell you what the total cost will be because it’s impossible to predict interest rates. Health care companies with fixed rates can tell you exactly what your total cost will be. However, they are not required to and generally won’t volunteer the information. So insist on it! This becomes even more important if you are offered, for instance, a 15-year loan as opposed to a standard 12-year loan. The monthly payment will be lower for the 15-year loan, but at what cost?

Banks will often ask for a 10 to 20 percent down payment of the amount borrowed. Health care finance companies require little or no down payment. Banks typically ask for collateral, such as a home or property. In most cases, health care finance companies will use the dental equipment or practice as collateral.