Refinancing Dental Practice Acquisition Debt
Refinancing your dental practice acquisition loan can lower payments, reduce total interest, or improve cash flow. This guide covers when and how to refinance practice debt.
When to Refinance
Good Timing
- Rates dropped 1%+ since original loan
- Practice cash flow improved
- Credit score increased significantly
- Seasoned loan (2+ years)
Wait If
- Prepayment penalties apply
- Planning to sell soon
- Rate difference under 0.75%
Refinancing Options
SBA Refinance
- Available after 2 years
- Can include other business debt
- 10-25 year terms
Conventional Refinance
- Typically after 12 months
- Lower rates for qualified borrowers
- Faster processing
Cost-Benefit Analysis
| Factor | Typical |
|---|---|
| Closing Costs | 2-5% of loan |
| Appraisal | $3K-$8K |
| Break-Even | 18-36 months |
Conclusion
Refinancing makes sense when rate reduction exceeds closing costs within your hold period. Calculate total savings before proceeding.
Explore refinancing? Contact DentalBridge.