Medical and dental practice financing covers equipment, office build-outs, practice purchases and working capital while insurance payments are pending. Silvershore Funding Group, a small-business funding broker in Flagstaff, Arizona, explains which funding fits each need and connects Coconino County practices with lending partners, who make credit decisions and set rates and terms.
| Ambulatory health care employers | 329 in Coconino County (U.S. Census Bureau, County Business Patterns 2023) |
|---|---|
| Offices of physicians | 76 employer establishments (same source) |
| Offices of dentists | 48 employer establishments (same source) |
| Health care payroll | $565.3 million, the county's largest sector payroll |
| Options that often fit | Equipment financing, term loans, working capital |
| Who decides | Lending partners, not Silvershore Funding Group |
Coconino County practices by the numbers
| Measure | Ambulatory health care | Offices of physicians | Offices of dentists |
|---|---|---|---|
| Employer establishments, 2023 | 329 | 76 | 48 |
| Paid employees, March 2023 | 3,279 | 508 | 396 |
| Annual payroll, 2023 | $211.5 million | $48.3 million | $18.6 million |
| Share with fewer than 5 employees | 55.0% | 71.1% | 31.2% |
| Businesses with no employees, 2024 | 659 | 146 | not shown |
Sources: U.S. Census Bureau, County Business Patterns 2023 (first four rows); U.S. Census Bureau, Nonemployer Statistics 2024 (last row). Different programs and years: do not add the rows together. The nonemployer figure for dentists is omitted because its receipts estimate is low-confidence. Across all of health care and social assistance, county employers paid $565.3 million in annual payroll in 2023, more than any other sector (U.S. Census Bureau, County Business Patterns 2023).
Dental offices and physician offices borrow differently
The figures show two different shapes of practice. Most physicians' offices in the county are very small employers: 71.1 percent had fewer than five employees. Dental offices are the opposite: only 31.2 percent were that small, and they averaged more than eight paid employees each (derived from County Business Patterns 2023 counts).
A dental office, with several operatories, hygienists and front-desk staff, carries a larger fixed payroll and more equipment per location, so dental office financing often centres on chairs, imaging and build-outs. A small physician or therapy practice may need less equipment but feel the delay in insurance payments more sharply against a thin cash cushion.
Medical and dental equipment financing
Clinical equipment is usually financed on its own, with the equipment as collateral, through an equipment loan, lease or equipment finance agreement:
- dental chairs, delivery units, intraoral cameras and imaging systems;
- exam tables, diagnostic equipment and medical devices;
- sterilization and lab equipment;
- chiropractic and physical therapy tables and treatment equipment;
- practice-management and imaging software bundled with hardware.
Technology that dates quickly may suit a lease; durable equipment that will be used for many years usually suits ownership. How equipment financing works compares the three structures.
Build-outs and practice purchases
Fitting out a new or expanded office, with plumbing, cabinetry, electrical work and finishes, is a one-time project that usually fits a term loan, with the equipment financed separately. Buying an existing practice is a different kind of request: partners look at the practice's collections history, patient base and the purchase agreement, as well as the buyer's credit and experience.
A practice that is starting from nothing faces the same challenge as any new business: no history. Partners will lean on the practitioner's credit and the business plan, and equipment financing is often the first piece that comes together.
Working capital and the insurance lag
Insurers and government programs pay on their own schedules, so a practice's revenue arrives weeks after the work is done, while payroll and rent fall due on fixed dates. Working capital financing or a line of credit can carry a practice through that gap, especially when it is adding a provider or opening a location. Partners usually look at collections data and the age of outstanding claims alongside bank statements.
What partners usually review for practices
- collections and production reports, and the payer mix;
- accounts receivable aging, including outstanding insurance claims;
- business bank statements and tax returns;
- equipment quotes or the build-out budget;
- for a purchase, the purchase agreement and the seller's financials;
- business and owner credit.
Silvershore Funding Group is a broker, not a lender. Local data is on our Flagstaff page, and other sectors are under financing by industry.
By Silvershore Funding Group · Updated