Dental Times - 100% lending is still possible
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15 July 2020

100% lending is still possible


Many people think that the days of 100% lending are long gone, but it’s not so in the world of dental practice purchasing. Emma Koniarski explains that even firsttime buyers can be accepted for a 100% loan – for the right practice

In these times of economic uncertainty, you might think that banks would be exhibiting a high level of caution in response to loan applications. Even more so in dental finance, where there is a particular lack of clarity around the final terms of the long-awaited NHS contract reform.

Fortunately for customers of Henry Schein Financial Services, there are still banks who are willing to offer good loan rates for the purchase of dental practices, and even some who will consider 100% lending to first-time buyers. Over the past few years, we have witnessed an ever increasing number of dentists who are looking to buy a practice and get on the first step of the property ladder, who have either no deposit at all or a minimal amount, such as 5% of the property value.

Although lenders normally would prefer a deposit of around 20%, it seems that they have identified a gap in the market which some of them are willing to fill as long as certain criteria are met.

Loans such as this tend to command slightly higher interest rates as the risk is higher, but this is still proving attractive to potential buyers who may not have equity behind them but do have experience of running a practice and a strong business plan.

It's all about the practice
Lending across the sector is heavily based on the practice in question. Each bank has their own set of criteria for a viable practice and they will judge each opportunity on its own merits.
The important question is whether it will easily be able to service the loan, which means it needs to be profitable and exhibit a good set of financial accounts.
Banks view NHS practices or mixed practices with a good NHS contract as the most secure and for first-time buyers who are seeking 100% lending, it is a definite prerequisite.
It seems that lenders regard the NHS contract as a guarantee of a certain level of income and there is always the potential to build up private practice alongside to grow the business.

Getting on the ladder
For first-time buyers looking for their first practice, 100% lending that was ordinarily unavailable is now something that can potentially be secured. However, it is advisable that first-time buyers indicate a level of experience of managing a practice at senior level.
This can be showcased in a strong business plan, which Henry Schein Financial Services can assist buyers to develop in order to present them in the most positive light.
Henry Schein Financial Services are then able to explore the market in order to secure the most competitive deal available to first-time buyers, and ensure it is tailored to meet their specific requirements.

How to apply and knowing who to ask
With so much variation in criteria between the different lending institutions, applying for a loan can be quite a minefield for prospective practice purchasers. This is where Henry Schein Financial Services can help.

The team has built up good relationships with numerous lenders and worked with them for many years. This experience has given them a really good idea of which lenders are likely to be more receptive to each application.


Henry Schein Financial Services can assist buyers to develop in order to present them in the most positive light


When prospective buyers approach Henry Schein Financial Services, the team assess the practice they wish to buy and look at the applicant’s specific details. They can then advise them on the best lenders to approach and help them with the process.

This detailed industry knowledge proves invaluable to customers, especially for those on the quest for 100% lending, which is still a niche area within the sector.
Henry Schein Financial Services also has access to preferential rates for its customers from many of its lenders, which are not available directly.

It is possible for dentists with experience of running a practice to realise their dream of owning their own practice, without having to stump up a large deposit as security. The key? Choose your practice wisely, make sure you have a watertight business plan and enlist Henry Schein Financial Services to help identify the most suitable lenders to approach.

Posted by: Emma Koniarski on