When you take the leap to buy or start a dental practice, you should be prepared to talk financing with your banker.

Know your production capability. If you are an associate, it’s important to know and understand your dental production when you begin to think about whether you’re ready to buy or start a practice. A lender will want to see through reporting what type of procedures you’re performing and what your dental production has been as an associate.

Keep up-to-date financial books and records. If you are an owner, you already have a track record of how well you operate a practice. Demonstrate that through accurate and up-to-date financial reporting. The typical bank package will include business and personal tax returns, current year profit and loss statements, and a background on each location you own.

Establish and maintain a rainy-day fund. Whether you are an associate or an owner, banks like to see that you have some personal liquidity to weather any financial headwinds you may experience.

Pay down (the right) debt. Tackling debt the right way makes you a better risk to lenders and more “bankable.” If you have credit card debt, pay it down first and as quickly as possible. This debt usually carries the highest interest rates and has the greatest effect on your credit score. Tackle highest-rate debt first.

Know your credit score. Monitoring your score, paying your obligations on time, managing your revolving debt, and only applying for credit when you have a significant need are great ways to ensure your credit score remains high.

MDA-endorsed Bank of America Practice Solutions has helped dentists across the nation reach their goals through smart financial solutions1 and expert guidance. Whether you own a practice or are just getting started, they can provide customized financial help for your short-term needs and long-term aspirations. Visit bankofamerica.com/practicesolutions, or call 800-497-6076.