BMO Bank, N.A. Dental Practice Loan Review: Financing to Grow Your Practice

If you’re ready to run a dental practice of your own, you’ll need to prepare for a range of hurdles. This includes everything from getting building permits and creating a business plan to securing financing and more. 

Fortunately, BMO Bank, N.A. dental practice financing is a great option for dental professionals looking to build or expand their own practice. Here’s what you need to know about BMO Bank, N.A. dental practice financing.

BMO Bank, N.A. dental practice financing: The basics

BMO Bank, N.A. is North America’s eighth largest bank and currently serves more than 12 million customers. As part of its business lending operations, it offers specialty financing to help dentists establish or expand their practice.

BMO Bank, N.A. dental practice financing loans are available to:

• Finance an acquisition or grow an existing practice
• Invest in new equipment and technology
• Purchase commercial real estate

It’s also the only dental practice financing provider endorsed by the American Dental Association (ADA) Member Advantage program since 2019.

As stated on the BMO Bank, N.A. website, “Our focus on relationships, our culture of integrity, our commitment to serving communities and our commitment to diversity are major reasons why we’re endorsed for ADA members as the only practice financing provider.”

This exclusive endorsement will score ADA members a half-a-point interest rate reduction on loans up to $1 million. That’s significant savings when taking on a dental practice loan.

Note that custom pricing is available for financing relationships over $1 million. 

BMO Bank, N.A. loan details and borrower requirements

There isn’t much information online about specialty financing requirements or loan details for BMO’s dental practice loans.

Student Loan Planner attempted to reach out to the lender for specifics, but its underwriting methodology is a dynamic model that takes many personal and business factors into consideration. This means BMO Bank, N.A. will weigh different financial and practice scenarios when determining loan requirements and terms.

For example, offers might vary based on whether you plan to acquire an existing business versus building one from the ground up. It’s typically more expensive to purchase a dental practice than it is to start a brand new practice. However, an existing practice generally comes with a solid patient base and cash flow.

You’ll need to reach out to a BMO representative to receive additional information related to loan terms and borrower qualifications. They can review your situation and potentially work with you to find a mutually beneficial solution. 

If you're looking to get the practice loan preapproval process started, check out our form below.

General requirements

However, dentists should expect — at minimum — to meet traditional borrower requirements (e.g. good credit score and payment history, low debt-to-income ratio, etc.) when applying for BMO Financial Group dental practice financing.

In general, you’ll have the best chance for success of securing a practice loan with any bank if you have at least one year of employment under your belt, have no adverse credit history (e.g. bankruptcy), have $10,000 or more in cash savings and have a history of revenue production. 

What to expect during the application process

When applying for a dental practice loan, prepare for a peppering of questions from the bank. But don’t be intimidated by this. This open discussion helps the bank understand your practice goals and ensure you have a realistic business plan that’s worth financing. It’s also standard relationship building.

Discussion questions might include:

• Why is this dental practice a good fit?
• What’s your credit history and current financial situation like?
• If acquiring a dental practice, what’s the existing patient base and staffing model? Will the seller remain on the payroll to assist with the transition?
• What’s your timeline? How long do you want to maintain the practice debt?

This is just a small sample of the many questions a bank will pose in order to structure an appropriate dental practice loan for you.

How to learn more about BMO Bank, N.A. dental practice financing

Unfortunately, most dental practice financing programs aren’t super transparent about loan rates and other terms since they’re handled on a case-by-case basis. This makes comparing loan options challenging. We still recommend doing the legwork to compare at least two dental practice lenders to ensure you’re getting the best pricing.

The sooner you involve a lender in the dental practice financing process, the more successful you’ll be at discovering your ideal loan. It also jumpstarts the relationship building phase, which is needed in these types of unique financial transactions.

You can contact a BMO Bank, N.A. dental practice financing representative by calling 1-833-276-6017 or emailing practice.health@bmo.com. 

Additionally, BMO Bank, N.A. has an informative dental practice financing blog series that addresses important topics like: 

• Writing a business plan
• Estimating capital needs
• Leasing vs. buying
• Capital budgeting

Searching for a dental practice loan in your area can help you find a lender that understands the unique opportunity in your local market. Check out your state on our practice loan partner marketplace to see if you can score a cash bonus when you close.