Dental Practice Acquisition and Expansion Financing in Plano, Texas

Scan the situation that matches yours below and follow that link — each guide covers rates, down payments, and approval criteria for that specific path. If you're still getting oriented, the overview below will help you land on the right one.

What to know about dental practice financing in Plano, Texas

Plano sits in one of the most competitive dental markets in North Texas. Collin County's population growth has made practice acquisitions here more expensive than the state average, which means your financing structure matters more than it would in a slower market. Most buyers and expanding owners are weighing three distinct loan types — and they work very differently.

SBA 7(a) loans are the workhorse for full-practice acquisitions. In 2026, rates run 8.5–11%, terms stretch to 7–10 years for practice purchase, and the program tops out at $5,000,000. You need a minimum FICO of 640 and at least 24 months in business (or a strong associate track record if you're buying your first practice). A 10–20% down payment is standard. The trade-off: approval takes 30–45 days, and the paperwork load is real — plan for 6–12 months of business bank statements, a practice valuation, and a detailed transition plan.

Conventional dental-specific bank loans — offered by several regional and national lenders who specialize in healthcare — sometimes close faster and may require less documentation for straightforward acquisitions. They're worth comparing against SBA if your credit is 700+ and the practice has clean, verifiable revenue. Rates are broadly similar but can go slightly lower for excellent-credit borrowers (740+) because the lender isn't paying an SBA guarantee fee.

Equipment financing stands apart from acquisition loans. If you're staying put but upgrading — CBCT scanner, cone beam, CAD/CAM milling, or a full operatory build-out — equipment loans close in 1–3 days and the equipment itself serves as collateral. Section 179 expensing lets you deduct up to $1,220,000 in qualified equipment purchases in 2026, which meaningfully changes the after-tax cost calculation. Down payments typically run 15–20%.

The number that trips people up most: debt service coverage ratio. Lenders want to see the acquired or expanded practice generating at least 1.25x the annual debt payment in net operating income. If the practice you're buying runs lean, a lender may require seller financing for part of the gap, or structure the deal with a working capital reserve. Working capital lines for dental offices carry their own rate range — typically 9–13% APR — and are often layered on top of an acquisition loan rather than bundled into it.

Partner buyouts follow acquisition-loan logic but add complexity: you'll need a buy-sell agreement, an independent practice valuation, and documentation that the departing partner's patients and revenue are stable. Some banks treat a buyout differently than a third-party acquisition; see the acquisition hub for a full breakdown of how lender criteria shift depending on deal structure.

Credit score tiers in this market are concrete:

• 740+ (excellent): best-tier rates, lowest origination fees (1–3%)
• 700–739 (good): standard approvals, moderate pricing
• 640–699 (fair): eligible for SBA 7(a), but expect rates 2–4 percentage points higher than prime-tier borrowers
• Below 640: most acquisition lenders decline; equipment-only financing may still be available at higher rates

If you're weighing your options by credit profile rather than deal type, the acquisition-by-credit guide maps the loan matrix by FICO band.

Plano's commercial real estate costs also affect expansion decisions. Dentists adding a second location or building out an owned office space are increasingly using commercial real estate loans alongside equipment financing — a structure similar to what business buyers in other high-growth Texas markets use when acquiring brick-and-mortar operations with real property involved. The underwriting logic overlaps: lenders look at the same DSCR floor (1.25x), similar down payment requirements, and comparable term lengths.

For dentists earlier in the process who want to see how neighboring markets compare on rates and lender availability, the Amarillo dental financing guide covers a useful contrast — smaller market, different lender mix, similar SBA mechanics.