5 ways a loan can help dentists and their practices during the COVID-19 crisis

During these unprecedented times, it can be challenging to remain focused on meeting your near-term needs while also making sure they coincide with your long-term planning. As COVID-19 continues to impact businesses and lives across America, we will persevere through these times. Soon enough, your schedule will be booked, staff will return, and vendors will be eager to tell you about how their products can help. But how can we make immediate financial decisions that align us with future prosperity?

While the Small Business Association (SBA) is offering new financial relief programs, I encourage you not to put all of your eggs in one basket. You need to evaluate your financial needs: Do you need liquidity? Do you need payroll coverage? Has the downtime allowed you to make updates to your business? Perhaps it’s all of the above. Your needs will determine what the most economically favorable path is for you to secure funding, whether it’s through the SBA or a traditional business loan. If anything, you should be thinking about both as a solution, asking yourself “How can I leverage government relief, and what lenders can assist in providing me additional capital?”

Many lenders, including Bankers Healthcare Group, are offering competitive incentives on their loan solutions, such as deferred payments to provide borrowers with relief. It’s possible to borrow money affordably, even in a crisis.

Here are five ways a loan can help your business and personal finances:

1. Keep staff paid and covered—Your most immediate business financial need is likely related to staff, which is often the biggest cost area for practice owners. Investing in high-quality employees is arguably one of the most important investments a practice owner can make when it comes to making seamless transition back to business. A loan can help ensure you can continue paying salaries and benefits.

2. Pay the bills—In last year’s The Dental Outlook report, it was noted that rent or mortgage is one of the top three expenses faced by practice owners. And with renting or owning an office come utility bills. If you’re planning to get back to work once restrictions are lifted, then you need to keep the lights on, as they say. A loan can help you pay your necessary bills.

3. Consolidate debt—If you have several outstanding debts, such as equipment financing or credit card balances, it might make sense to consolidate what you can and pay off what you can’t bundle. Having to make just one payment, with one due date (and a potential lower interest rate) could help to alleviate some stress. You can consolidate debt through a loan.

4. Plan for the future—You might be viewing this downtime as an opportunity to future-plan for your practice. A loan can enable you to invest in these areas to help you work more efficiently, better serve patients, and drive more business, all of which can drive returns on your investment:

• Equipment: Upgrade or add new equipment
• Technology: Invest in tools to drive efficiency
• Staff: Hire more people
• Training: Sharpen existing and learn new skills and techniques
• Marketing: Drive awareness of your practice and acquire new patients

5. Get your personal finances in order—Now is the time to review your personal finances, especially if your typical income is lower than normal or temporarily paused. For example, if multiple debts are causing you stress, then a personal loan can help with consolidation so you can pay them down and only have to focus on making one payment and one date. 

The takeaway

When evaluating the state of your finances in this current crisis, know that this difficult time will pass and the need for care will remain. When thinking about what you want in the future, know there are immediate financing options available to help you achieve your goals. Whether you need a cashflow injection to bridge a financial gap for a few months or a loan to help you prepare for investments and opportunities, the right loan solution and lender can help.

Zach Raus is president of lending at Bankers Healthcare Group, a leading provider of financial solutions for licensed healthcare practitioners and other highly skilled professionals. To learn more about BHG’s loan offerings, visit bankershealthcaregroup.com.

Related

• New ADA HPI research brief projects 66.5% reduction in dental spending for 2020
• SBA relief loan options: What’s best for dentists?
• Changes dentists should make before they reopen

Editor's note: To view DentistryIQ's full coverage of the COVID-19 pandemic, including original news articles, video interviews, and downloadable forms, visit the DentistryIQ COVID-19 Resource Center.