Looking to buy your first dental practice? Here's what you need to know about bank funding

In this article, Stephen McConalogue, associate director of Christie Finance, discusses the landscape for dental finance and what to expect when applying for bank funding

Buying your first dental practice is an exciting milestone.

If you are looking at your financing options – whether you have your eye on a small NHS clinic, or a multi-surgery private practice – understanding the funding process is key to a smart, sustainable investment and making the most out of your venture.

Why buy your own practice?

There are many reasons why you may wish to buy your own dental practice.

Here are some that might resonate with you:

• Financial independence: Control your income and profit margins and build equity in a valuable asset over time
• Clinical freedom: Set your own treatment protocols and patient care standards, and choose preferred materials, equipment, and techniques
• Business growth:Scale your services or open multiple locations, and build a strong brand and reputation in your community
• Long-term security: A practice can become a retirement asset or be sold for profit, and can give you greater control over your career path and work/life balance
• Leadership and impact: Lead a team, shape culture, and mentor younger clinicians, creating a practice that reflects your values and vision

Lender appetite in the UK sector

The UK dental sector continues to attract strong lender interest in 2025, supported by stabilising interest rates and the sector’s resilience as a needs-driven service.

Banks and specialist healthcare lenders consistently view dental practices as low-risk investments, particularly those with robust private or mixed income streams.

We’re seeing independent operators and first-time buyers securing competitive terms, and the return of acquisitive corporates and mid-sized groups after a period of consolidation.

Lenders are prioritising those looking to buy practices with sustainable profitability, strong compliance credentials (such as CQC registration), and healthy cash flow projections.

Regarding the type of purchase, freehold properties remain the preferred collateral, but those looking to buy a leasehold practice can still access funding provided that they present a compelling business case.

Understanding deposits and funding structures

So, how much funding will you need to buy your practice?

Banks typically lend up to 90% of the goodwill for the practice or 100% of the freehold property, if premises are included in the transaction.

Deposits: These are usually 5%-10%, depending on the strength of the practice and any planned changes that could impact future profits.

Working capital: Additional funds may be needed for equipment upgrades or refurbishments.

Forecasts: Demonstrating growth potential, such as using an unused surgery, can help achieve a higher loan-to-value ratio.

This should be detailed in your business plan and financial forecasts

Start thinking about your business plan

Now that you understand a bit more about the funding landscape in the sector, and how much funding you’re going to need for your purchase, it’s important to start thinking about your business plan, which is a key driver for securing finance and guiding your practice’s growth.

Here’s why:

• Demonstrating viability:Lenders want confidence that your practice has a clear strategy, realistic financial projections, and a roadmap for sustainable success
• Clarifying objectives: It defines your goals, target market, and competitive positioning, ensuring alignment across stakeholders
• Managing risk:By identifying potential challenges and outlining mitigation strategies, your plan reassures lenders and investors
• Supports financial planning: Detailed cash flow forecasts, profit projections, and funding requirements are essential for loan approval
• Providing operational guidance: Beyond financing, your plan acts as a reference point for decision-making and performance tracking as your practice evolves