What matters most?
The combined payment compared with deposits, the share already repaid, and the account’s day-to-day health. A practice whose collections grew since the first advance has more room.
Dental collections can be uneven across the year. Funders look at several months to see the full picture, including slow months.
Which path fits?
Renewal when a good share is repaid; a second position when deposits comfortably carry two payments; payment relief, a form of reverse consolidation, when payments are already heavy.
Payment relief lowers the combined payment by extending the term. It is used to free cash flow, not to add new money.
Read your existing agreement before applying. Some include terms about additional financing, and knowing them avoids conflicts. Bring the current payoff amount and payment schedule to the conversation so options can be compared on real numbers. If the first advance was for something that already paid back, such as a busy-season supply order, and the new need is for growth, such as an operatory, it helps to explain that difference.
Dental practices often renew around the same time each year, for example before the slower summer stretch or the year-end treatment rush. Planning renewals ahead of those periods, rather than in the middle of them, usually produces a calmer decision and a better-fitting payment.
How do I test affordability?
Take your slowest recent month of deposits, subtract fixed costs and payroll, and compare the remainder with combined payments.
If the margin is thin in a slow month, restructuring is safer than adding another payment.
| Path | Effect | Best when |
|---|---|---|
| Renewal | One payment, new funds | Much of balance repaid |
| Second position | Two payments | Strong deposits |
| Payment relief | Lower payments | Payments too heavy |
Worked example: renewing to add an operatory
A practice averaging $168,000 in monthly deposits has repaid most of an advance and wants $40,000 to equip a sixth operatory for a new associate. Using an illustrative factor rate of 1.24, $40,000 would mean $49,600 repaid over roughly 7 months: 30 weekly payments of about $1,653.
That works out to about $7,086 a month, or 4.2% of the $168,000 this business deposits monthly, and the total cost of the money is $9,600. A single renewed payment, tested against a slow month, confirms whether the practice keeps a healthy cushion.
For comparison, repaying the same $49,600 over 5 months would lift the monthly outlay to about $9,920, or 5.9% of deposits, and a shorter term can come with a lower factor rate, so comparing both versions side by side is worthwhile.
| Average monthly deposits | $168,000 |
|---|---|
| Amount funded | $40,000 |
| Factor rate (illustrative) | 1.24 |
| Total repaid | $49,600 |
| Cost of the funding | $9,600 |
| Term | about 7 months |
| Weekly payment (30 payments) | $1,653 |
| Payments as a share of deposits | 4.2% |
Who this fits
Usually a fit
- Practices well into an advance
- Offices with growing collections
- Owners preferring one payment
When an office may want to wait
- Accounts with frequent negative days
- Agreements that restrict new funding
- Very recent advances
What you’ll typically need
- Recent business bank statements
- Current advance agreement
- Practice details
Frequently asked questions
Do I need to disclose current advances?
Yes; disclosure speeds review.
What is payment relief?
A restructure lowering combined payments over a longer term.
Is a renewal always better?
Compare total cost and payment for each option.
What credit score do I need to fund a dental renewal?
For a dental renewal, owners with scores from 500 can be considered because recent deposits carry the most weight, and stronger credit usually earns a lower cost and a larger offer.
Advance open, new need?
Apply and compare.
Updated October 6, 2026