Industry

Dental practices funding in Canada: what funders actually read.

The deposit patterns, seasonality and timing that decide how a Canadian dental practices file is read.

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How funders read dental practices files

Dental practices combine insurer remittances with patient payments, and invest steadily in expensive chair-side and imaging equipment.

The mix of insurer and patient-paid deposits
Timing of insurer remittances relative to payroll
Equipment age and the cost of replacement
Associate arrangements and production splits

The cash-flow rhythm

Year-end benefit exhaustion and January resets move volume, and summer can be softer. Insurer payments lag the work performed.

Where the pressure usually shows up

Insurer payments arrive weeks after procedures
Imaging and chairs are large capital purchases
Associate onboarding costs precede production

What the money usually does

Digital imaging and CBCT
Adding an operatory
Practice acquisition or buy-in bridging
Hiring a hygienist ahead of demand

Steady deposits and a clear equipment need make a longer, flexible structure sensible, with sizing on total deposits.

A worked example

Illustrative arithmetic

A three-chair dental practice depositing about $135,000 a month asks for $60,000 for imaging and a fourth operatory. At a 1.2 factor the payback is $72,000, a cost of $12,000. Over roughly 8 months that is about $429 per business day, or close to 7% of monthly deposits.

Total payback: $60,000 × 1.2 = $72,000.
Cost: $12,000.
Payment: about $429 per business day, or 7% of monthly deposits.

Every figure on this page is illustrative arithmetic in Canadian dollars. It is not an offer, a quote or a promise of approval.

Before you apply

Show insurer and patient deposits separately
Have the equipment quote and installation timeline
Document associate agreements if relevant

Typical starting points

Monthly revenueTypically from around $20,000 a month in deposits for Canadian files. The exact line varies by funder and by file.

Time in businessTypically about 12 months. Newer businesses can be reviewed, but the options narrow.

Account healthLimited low-balance or negative days. Funders read the last few months of bank statements for this.

CreditScores from 500 are considered. A score of 600 or higher opens more options and better offers.

DocumentsA signed application and recent business bank statements, typically the last four months.

Existing advancesFiles with an existing advance can be reviewed, including second position.

Common questions

Do insurer delays matter?

They shape the deposit cadence. A funder reads the average daily balance through the claim cycle.

Can I fund imaging equipment?

Yes. It is one of the most common reasons.

Is a practice purchase possible?

Acquisitions are reviewed case by case, and a structure sized on the combined deposits is typical.

Keep reading

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Educational information only. It is not legal, tax or accounting advice.

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