Ozarks Capital Funding

It wasn’t too long ago when working capital loans from a bank were easy to acquire for dentists and other health care professionals.  Those days have changed dramatically.  it’s not that banks don’t loan money anymore.  The issue is the tightening of underwriting standards brought about by the sub-prime lending meltdown.  Minimum credit scores of 685 are common to qualify, compared to low 600’s less than a year ago.  Application-only working capital loans for dental practices are rare.  Now, a practice must provide tax returns, financial statements, and needs to have a track record of profitability.

Many dental practices are opting for a less cumbersome form of financing:  invoice factoring.  With this arrangement, the dentist’s personal credit score, profitability, and personal guarantee aren’t necessary.  The only requirement for dental accounts receivable factoring is to submit legitimate third-party invoices (those paid by insurance companies and government programs).   With factoring, dental professionals submit their invoices for payment and receive an advance of funds rather than waiting  30 to 90 days for payment.  The difference between the amount advanced and the amount actually received is called the reserve.  The reserve amount is paid to the client when the receivable is paid, less the fee charged by the factoring company.

Do you have a dental practice that could use working capital?  Click here to apply.