Dental practice expansion loans
Adding surgeries, relocating or opening a second site involves costs that are not equipment: recruitment, rent deposits, works, marketing and the months before new capacity pays its way. This page explains how expansion borrowing differs from equipment finance and how to plan it carefully.
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Separate the equipment from everything else
A lender looks at identifiable equipment and general spending in different ways. Chairs and imaging may suit asset finance linked to the equipment. Recruitment, rent deposits, legal fees, marketing, stock and cash to cover the period before new surgeries are busy are wider working capital needs. A business loan or working capital facility may cover them, subject to lender assessment and any required security or guarantees.
Splitting your budget this way lets you match each cost to a suitable product and shows a lender that you understand where the money goes. It also avoids stretching equipment finance over costs a lender may not accept, which can slow an application.
- Additional surgery equipment
- Building and fit-out works
- Recruitment and associate onboarding
- Rent deposits and legal costs
- Opening stock and consumables
- Cash buffer during ramp-up
Secured, unsecured and guaranteed borrowing
Secured loans are backed by assets, which can include property. Unsecured loans do not take a specific charge but often require personal guarantees from directors or partners, meaning individuals may be liable if the practice cannot repay. Some facilities include covenants or conditions you need to keep meeting. Understand exactly what is being pledged and by whom before signing, and consider independent legal advice on any guarantee.
Early repayment terms vary. Some loans allow settlement at any time; others charge for it. If you might sell, merge or refinance during the term, that flexibility matters.
Forecasts a lender can believe
Expansion forecasts should allow for realistic delays: works overrunning, recruitment taking longer, regulatory registration changes, and new surgeries filling gradually. Do not assume any particular NHS contract value, change or award; lenders will want to understand the income you actually have and how secure it is. Show existing borrowing alongside new commitments so the combined repayments are clear. Registration or notification requirements with the relevant regulator, such as CQC in England, are your responsibility and are not affected by how you fund expansion.
Planning expansion funding
Stress-test the ramp-up
Model what happens if new surgeries take longer to fill or an associate starts late. Repayments start on schedule regardless.
Count existing commitments
Lenders look at all current loans, leases and equipment finance. Adding new debt on top of existing agreements changes affordability.
Use the right product for each cost
Equipment can go through asset finance; fit-out may suit practice fit-out and technology finance; general costs may suit a business loan.
Acquisition is different
Buying an existing practice is a separate exercise. See our professional practice acquisition service if that is the plan.
Costs and risks to weigh
- Personal guarantees can put directors' or partners' personal assets at risk if the practice cannot repay.
- Secured borrowing can lead to the lender enforcing its security, which may include equipment or property.
- Delays in works, recruitment or registration can leave you repaying before new income arrives.
- Early repayment or exit charges may apply if you refinance or sell.
- Combining several facilities increases total monthly commitments and complexity.
Sorbus Finance is a broker, not a lender, and works with a selected panel of lenders rather than the whole market. Any offer, cost, deposit, security or guarantee requirement depends on the lender's assessment and the agreement itself. Ask for a written breakdown of lender charges and any broker fee. VAT and tax treatment depend on your business circumstances and structure; take advice from your accountant.
Lender and document checklist
- Expansion budget split into equipment, works and general costs
- Recent accounts, management figures and business bank statements
- Forecasts with assumptions, including a delayed scenario
- Schedule of existing borrowing, leases and guarantees
- Premises details: lease heads of terms or ownership, and landlord consent
- Staffing and recruitment plan for the new capacity
Related finance services
Sources worth reading
General guidance from publishers. Take legal and accounting advice on guarantees, structure and tax.
Who you could speak to
- STEP 1
A conversation with a broker
You talk to a real Sorbus broker about the business, the purpose and what is affordable. No application at this stage.
- STEP 2
Credit placement
If you choose to go further, we prepare the case and decide which lenders on our panel of 150+ are worth approaching.
- STEP 3
Lender assessment
The lender, not Sorbus, underwrites and makes the credit decision. Approval is never guaranteed.
- STEP 4
Documentation
If a lender offers terms and you accept, we help coordinate agreements and payout paperwork with you.
Every step after the first is optional. You can stop after the conversation. Sorbus is a broker, not a lender.
Client journey
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Read how real businesses approached a funding goal, what Sorbus arranged and what happened next.
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Tell us a little about what you need and who you would like to speak to. No obligation, no credit check at this stage. We aim to respond within one business day, Monday to Friday, 9am to 5:30pm.
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hello@sorbusfinance.co.ukFrequently asked questions
Can one loan cover equipment and fit-out for a new surgery?+
It can, but splitting identifiable equipment into asset finance and other costs into a loan is often more practical. The right mix depends on the lender and your plans.
Will a lender require a personal guarantee for a dental expansion loan?+
It is common for business loans, particularly unsecured ones. A guarantee can make you personally liable, so take time to understand it.
Do lenders rely on NHS contract income?+
Lenders consider the income a practice actually has and its stability. We do not assume any particular contract terms or changes; be prepared to explain your income mix.
Can recruitment and rent deposits be funded?+
They are not equipment, so asset finance usually will not cover them. A business loan or working capital facility may, subject to lender assessment.
How should I plan for delays?+
Build a forecast that assumes works, recruitment and patient uptake take longer than hoped, and check that repayments remain affordable in that scenario.
Is expansion finance the same as buying a practice?+
No. Acquisition finance involves valuing goodwill and the business being bought. Expansion loans fund growth of your existing practice.
Planning a new surgery or site?
Share your budget and timeline and we will discuss how lenders may view each part of it.