How Much Down Payment for a Dental Practice?
Expect 10-15% down for SBA loans, 20-30% for conventional loans. Total cash needed includes down payment plus closing costs and working capital.
Down Payment by Loan Type
| Loan Type | Down Payment | Notes |
|---|---|---|
| SBA 7(a) | 10-15% | Most common |
| Conventional | 20-30% | Better rates |
| Seller Financing | Negotiable | Often 10-20% |
| Real Estate included | 10-15% | Combined loan |
Total Cash Needed Example
On $500K practice purchase:
- Down payment (10%): $50,000
- Closing costs: $10,000-$15,000
- Working capital: $20,000-$30,000
- Total cash needed: $80,000-$95,000
SBA Loan Advantages
SBA allows lower down payments because:
- Government guarantee reduces lender risk
- Practice cash flow secures loan
- Proven business model
Bottom Line
Budget 15-20% of purchase price for total cash needs. SBA loans minimize upfront cash requirements. Conventional loans require more down but offer better rates.
Down payment planning? Contact DentalBridge.