Starting a healthcare practice is an exciting venture but securing the funds you need can be challenging—especially if you have credit issues. I’m Derek Leonard, “The Dental Startup Guy” and in this blog, I’ll discuss how your credit plays a vital role in securing funding for your practice. This is a key part of Phase 1 of my SPEED formula: S—Secure the Funds.

Why Having Good Credit Matters for Practice Loans

Lenders look at your credit score as a reflection of your ability to manage finances. If your score is low, it can raise red flags, making it more difficult to secure the funds you need for your practice. That’s why it’s so important to address credit issues early on.

Fixing Your Credit Early

If you know your credit score isn’t where it needs to be, the time to fix it is now. There are plenty of credit repair companies out there but remember—timing is crucial. Start working on your credit well before you plan to apply for loans, so you have time to improve your score and avoid complications with lenders.

How Credit Affects Your Loan Terms

Even if you are able to secure a loan with less-than-perfect credit, your terms may not be ideal. Lenders might offer higher interest rates or require more collateral. The better your credit, the more favorable your loan terms will be, so it’s worth the effort to improve your score before you apply.

Ready to start securing the funds you need for your practice? Download my free book Startup 101: Ignite Your Practice and learn how to navigate the funding process—even if you have credit issues. For personalized advice, book a discovery call with me today, and let’s talk about how we can improve your chances of securing the right loan for your practice.