What should the debt list include?
Every obligation: practice purchase loans, equipment financing, a line of credit, credit cards used for the practice, leases, and any short-term advances. For each, record the balance, the monthly or weekly payment, the term remaining and the total cost if you know it.
Include personal debt tied to the practice, such as student loans for an owner dentist, since lenders may look at it alongside the practice’s own obligations.
How do I compare debt to what the practice earns?
Add up monthly debt payments and compare them to average monthly collections after core costs. If payments take a large share of what is left after payroll, lab and supplies, the practice has little room for a slow month.
| Question | What it tells you |
|---|---|
| Which payment is highest relative to what it financed? | Where consolidation or refinance may help |
| Which debts end soonest? | Where cash flow frees up without any action |
| How many obligations are short-term? | Whether weekly or daily payments strain cash |
| Is debt tied to equipment that is still earning? | Whether the debt is productive |
What are the options once I know the numbers?
Pay down the most expensive debt first, consolidate several payments into one term loan if the total cost is lower, or add a line of credit for flexibility. Which fits depends on the cost, term and your cash flow, so compare total repayment in dollars.
If you are buying a practice, see financing a dental practice purchase and buying a practice with student debt. For ongoing flexibility, look at a dental practice line of credit or term loans.
Updated October 24, 2026 · SmileBright Capital Funding Team
Frequently asked questions
What debt service level is healthy for a dental practice?
It varies by practice and market. Compare your payments with what is left after payroll, lab and supplies, and make sure a slow month is still covered.
Should I consolidate several practice debts?
Only if the total repayment is lower or the cash flow clearly improves. Compare in dollars.
Do lenders count personal debt?
They may consider personal obligations alongside the practice’s, so list them.
Can I apply while I carry other financing?
Yes. List every existing obligation on the application.