Before a dental practice applies for a business loan in the UK, settle seven things: what the money is for, whether the practice is a limited company, any CQC changes, how NHS and private income show in the accounts, the documents, the credit search and any personal guarantee. EAL Holdings, which names dentists among the professional firms it lends to, is a useful example of how a specialist lender looks at a practice.
Dentists rarely borrow for one big reason. It is usually a run of smaller pressures: a second surgery to fit out, a new scanner, a refurbishment before an inspection, a partner retiring, or a gap while NHS and private income settle after a change. Each of those needs a different kind of finance, and lenders ask different questions about each.
Specialist lenders such as EAL Holdings, which offers a business loan for dentists in the UK as part of its finance for healthcare and professional services firms, set out what they look at. This guide turns that kind of published criteria, and official guidance, into seven questions to answer before you fill in a single form.
The seven questions in one table
| Question | Why a lender asks | What to have ready |
|---|---|---|
| 1. What is the money for? | The purpose decides the right product | A one-page plan with quotes |
| 2. Who is borrowing? | Many lenders only lend to companies | Your Companies House record |
| 3. Does CQC need to know? | A new site or a sale changes your registration | Your current CQC registration details |
| 4. How does your income really work? | NHS and private income behave differently | Management accounts split by income type |
| 5. Are the papers in order? | Missing documents slow every case | Bank statements, accounts, director ID |
| 6. What kind of credit search? | Hard searches show to other lenders | Your own statutory credit file |
| 7. Will you sign a guarantee? | Many SME loans need one | Legal advice on the wording |
1. What exactly is the money for?
Write it down in one sentence, then add the detail. "Fit out surgery three with a chair, cabinetry and an intraoral scanner, to add a hygienist two days a week" is far stronger than "expansion".
The purpose also points you to the right product. Equipment can often be funded through asset finance, where the equipment itself is the security. A refurbishment, a cash flow gap or buying out a partner usually needs a loan. If you are buying a building, that is property finance. EAL Holdings describes its SME business finance as being for working capital, growth funding or refinancing, and it offers property-secured finance separately.
2. Is the practice a limited company?
Plenty of dental practices still run as partnerships or sole traders, while others have incorporated. This matters more than many dentists expect, because some lenders only lend to companies.
EAL Holdings, for example, lends only to UK-registered companies and says it does not lend to consumers. Its enquiry form shows its SME loan is aimed at companies trading three years or more. If your practice is not a company, ask each lender at the start whether it can help, rather than finding out halfway through.
If you are a company, download your record from Companies House. It shows your directors, your filing history and any charges already registered, which a lender will check anyway.
3. Will your CQC registration change?
Dental practices in England are registered with the Care Quality Commission. Its registration guidance covers making changes to your registration, buying or selling all or part of a registered business, and changing your business type, such as moving from a partnership to a company.
If the loan pays for a new location, a practice purchase or a change in legal structure, plan the CQC steps alongside the finance. A lender may ask how and when those changes will happen, because they affect when the new income starts.
4. How do your NHS and private income show up?
Most mixed practices have two very different income streams: NHS contract payments and private fees, sometimes with membership plans or patient finance on top. To someone outside dentistry, the bank statements can look confusing.
Make it easy. Split income by type in your management accounts and add a short note explaining any change, such as a contract variation, a new associate or a fall in private bookings during a refurbishment. EAL Holdings says its underwriters look at trading performance and cash flow, not just credit scores. That only helps you if the cash flow story is clear on paper.
5. Are your documents ready?
Gather these before you make an enquiry:
- 6 to 12 months of business bank statements;
- recent filed accounts, plus up-to-date management accounts;
- proof of identity for every director;
- quotes for the equipment or works the loan will pay for;
- a short note of how the loan will be repaid from practice income.
The first three match what EAL Holdings says it typically asks for. It also says that after a first conversation with an underwriter, you are given a specific list for your case.
6. What kind of credit search will be used?
Practice owners often contact several lenders in one week. If every one of them runs a hard search, other lenders can see that activity. Ask each one how its first check works.
EAL Holdings says its enquiries use a soft search only, with a hard search following only if you go ahead after an indicative offer. Before you start, request your own statutory credit file. The ICO explains that credit reference agencies must provide it free of charge, so you can spot errors before a lender does. EAL also says it does not need a perfect credit history and looks at adverse credit case by case.
7. Will you be asked for a personal guarantee?
Often, yes. EAL Holdings says its SME loans are secured by a personal guarantee and that it explains guarantee structures before you commit. The British Business Bank's guide describes a personal guarantee as legally binding, so that you become personally liable if the business cannot repay.
For practice partners and directors, ask three things in writing: is the guarantee capped, does it cover only this loan or all borrowing, and when does it end? Then take independent legal advice before you sign.
Comparing offers from different lenders
Once you have answers to the seven questions, you can compare offers fairly. Put the total amount repayable, every fee, any security and the guarantee wording side by side. A slightly higher cost can still be the better deal if it comes with a capped guarantee or a lender who understands why your figures dipped for six months.
GOV.UK's business finance finder lists other routes too, including regional schemes, so it is worth a look before you commit. And if the loan is mainly for equipment, compare it with asset finance quotes for the same items.
What we checked
We used the CQC's registration guidance, the British Business Bank's guide to personal guarantees, ICO guidance on credit files, GOV.UK's business finance pages and the published criteria of EAL Holdings as a worked example. We did not compare rates or fees, because practice lending is priced case by case and changes often.
Frequently asked questions
Can a dental practice get a business loan with an NHS contract?
Yes, many do. Lenders will want to see how the contract income arrives and how stable it has been, so show it clearly in your accounts.
Does EAL Holdings lend to dentists?
Its website lists healthcare and professional services, naming dentists and clinics, among the sectors it serves. It lends to UK-registered companies only.
Should I use asset finance or a loan for new equipment?
Asset finance often suits a single item such as a chair or scanner. A loan suits mixed costs like fit-out, wages and equipment together.
Will checking eligibility harm my credit score?
Not if the lender uses a soft search. Ask before you share details, and check your own file first.
Sources
- CQC: Registration guidance for providers
- British Business Bank: guide to personal guarantees
- ICO: Credit files and credit reference agencies
- GOV.UK: Find finance and support for your business
- GOV.UK: Get information about a company
General information only, not financial, tax or legal advice. Business finance is credit and must be repaid, and a personal guarantee puts your own assets at risk. Check terms carefully and take independent advice before you borrow.