Orthodontic Practice Acquisition and Equipment Financing in Garland, Texas

Scan the situation below that matches yours and go straight to that guide — each one covers the numbers and paperwork specific to that path.

What to Know Before You Pick a Path

Orthodontists in Garland financing a practice acquisition or equipment upgrade in 2026 are generally choosing between three loan structures: a conventional bank or specialty healthcare loan, an SBA 7(a) acquisition loan, or a standalone equipment financing line. The right answer depends on what you're buying, how much cash you want to keep in reserve, and how long the practice has been generating revenue.

Quick comparison

Loan type	Typical rate (2026)	Typical term	Down payment	Best for
Practice acquisition — conventional	7–10% APR	7–10 years	10–20%	Established practices with 2+ years of tax returns
SBA 7(a) acquisition	8–11% APR	up to 10 years (equipment), 25 years (real estate)	10%	Buyers who want lower down payment, up to $5M loan
Equipment financing	6–10% APR	up to 10 years	10–20%	Targeted upgrades: scanners, chairs, CBCT units
Business line of credit	10–15% APR	revolving	none	Working capital, smaller unplanned costs

Acquisition financing: who it fits and what trips people up

If you're buying an existing Garland orthodontic practice, most lenders will underwrite the deal on the practice's trailing 12 months of cash flow rather than your personal income alone. They'll want at least 12 months of bank statements, two to three years of business tax returns, and a formal practice valuation. The key ratio is debt service coverage: most lenders require the practice to generate at least 1.25x the annual loan payment in operating income. A practice that produces $800,000 a year needs to leave enough margin after overhead to cover that threshold — lenders will stress-test the numbers before approving.

SBA 7(a) loans cover acquisitions up to $5,000,000 and carry a government guarantee of up to 85%, which is why banks are willing to approve them with as little as 10% down. The trade-off is process time — SBA approval typically runs 30–45 days — and a guarantee fee of 2–3.5% of the guaranteed portion added to closing costs. Minimum credit score for most SBA lenders is 640 FICO, but you'll get meaningfully better pricing above 680. Comparing dental practice acquisition loan structures across lenders in Garland is worth doing before you commit; this breakdown of dental acquisition financing options in Garland shows how SBA and conventional structures stack up on total cost.

Equipment financing: lease vs. buy in 2026

For orthodontic equipment — clear-aligner systems, intraoral scanners, digital X-ray, CBCT units — the lease-vs.-buy math in 2026 tilts toward buying for anything with a useful life over five years. The IRS Section 179 deduction lets you expense up to $1,220,000 of qualifying equipment in the year of purchase, which can turn a $200,000 scanner purchase into a significant first-year tax offset. Equipment loans currently run 6–10% APR with 10–20% down and terms up to 10 years; lenders treat the equipment as self-collateral, which makes approval faster than a full acquisition loan — often within a few business days.

Leasing makes sense when the technology turns over quickly or when you need to protect cash reserves during an acquisition hub transition — buying a practice and simultaneously upgrading equipment can strain liquidity if you deplete your down payment. Some lenders structure a combined acquisition-plus-equipment loan to keep the paperwork consolidated.

Eligibility benchmarks worth knowing

• Credit score: 640 FICO minimum for SBA; 680+ to avoid rate penalties on conventional loans
• DSCR: 1.25x minimum — the practice's net operating income divided by annual debt service
• Time in business: SBA requires 24 months of operating history; some specialty healthcare lenders waive this for acquisitions where the seller's track record substitutes
• Debt-service ceiling: Most lenders want total debt payments under 25% of gross monthly revenue
• Down payment: 10–20% for acquisition loans; equipment financing can sometimes go lower when the collateral value is clear

For orthodontists exploring options beyond Texas, the same loan structures apply in markets like Albuquerque, NM, though local lender availability and state-specific SBA preferred lenders vary. The healthcare practice acquisition financing guide for Garland covers how to sequence a practice search with lender pre-qualification so you're not losing deals to buyers who already have a term sheet.