Selling a Practice with Outstanding Loans

Outstanding practice debt complicates sales but doesn't prevent them. Understanding your options for handling existing loans ensures smooth transactions.

Handling Practice Debt

Payoff at Closing

• Most common approach
• Proceeds used to retire debt
• Clean transfer to buyer

Loan Assumption

• Buyer takes over payments
• Lender approval required
• SBA loans assumable with qualification

Refinancing

• Buyer obtains new loan
• Pays off seller's debt
• Standard approach

SBA Loan Assumptions

SBA 7(a) loans may be assumable:

• Buyer must qualify
• Lender consent required
• SBA approval for seller release
• May preserve favorable rate

Conclusion

Existing debt is manageable with proper planning. Discuss options with your lender before listing your practice.

Debt questions? Contact DentalBridge.