Guest author: Credabl
Looking to grow your dental practice? Whether you’re upgrading equipment, expanding to a second location or buying a practice outright, knowing how to fund your next move is key. There are a few different ways to go about it, each with pros and cons depending on your circumstances.
Grow Community partner Credabl - a leading finance partner to dental professionals - shares three common financing options to help you make informed decisions and move your practice forward.
1. Use your existing cash flow
Tapping into your own savings or retained earnings means you’re not taking on debt or giving away ownership - but there are a few trade-offs. While you avoid a liability on your balance sheet, it can take time to build up enough cash to fund bigger expenses like a practice fit-out or equipment upgrades. Draining your reserves could also leave you without a buffer for the unexpected - something every business owner knows can happen at the worst time.
Tip: If you’re planning to fund your growth through savings, make sure you still have something set aside for emergencies.
2. Consider private equity or investment
Private equity involves bringing in investors to fund your expansion. It’s a debt-free path to growth, and you’ll gain partners who can offer strategic input - but you may also need to give up some ownership or control. With external investors in the mix, major decisions may need to be discussed or approved collaboratively.
Tip: If going down the investor route, look for partners who align with your vision and values - and seek legal advice before signing any agreements.
3. Leverage finance through a business loan
Financing your growth through a business loan can be a smart way to preserve your working capital while keeping full control of your practice. Unlike equity investors, lenders don’t ask for a share of your business - they’re repaid over time with interest. In most cases, the asset you’re buying (like equipment or fit-out) serves as the security for the loan. Of course, taking on a loan means taking on a financial obligation, typically over 3 to 5 years. It’s important to make sure the return on investment is worth the commitment.
Tip: Work with a lender who understands your profession and can offer tailored terms. For example, reducing repayments during the early months of opening a new practice can help ease cash flow pressure.
There’s no one-size-fits-all solution when it comes to funding your growth. Whether you choose to self-fund, bring on investors, or borrow to invest - what matters most is aligning your financial strategy with your business goals.
Grow Community is proud to work with partners like Credabl who support dental professionals with financing solutions designed around real-world needs.
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DISCLAIMER: The Grow Community is operated by Grow Management Pty Ltd ABN [55617707212] (“Grow”), a subsidiary of the Credabl Group. Neither Grow nor Credabl accept any responsibility or liability for goods or services supplied by Grow Community network partners. The information provided is general in nature and we have not taken into account your personal objectives or financial circumstances or needs when preparing it. Before acting on this information you should consider if it is suitable for your personal circumstances. Please seek your own independent legal, financial, tax or other advice before deciding to use any goods or services supplied by a Grow Community network partner.
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Credabl Pty Ltd (ACN 615 968 100) Australian Credit Licence No. (ACL) 499547. Terms and conditions, fees & charges, lending and eligibility criteria apply. This document is a guide only and does not constitute any recommendation on behalf of Credabl. The information in this document is general in nature and we have not taken into account your personal objectives, needs, or financial circumstances. You should obtain independent financial, tax, and legal advice as appropriate before acting on this information