About This Episode:
In this episode, Jayme and Stephen will do part two of financing for startups. They are going to cover three topics including the twists and turns of how to rank banks, whether it’s a good, safe, and sound idea to buy a house, and how to identify the fastest path to paying off student loans. When it comes to ranking banks, there are a number of criteria that one should consider when they start to look through things regardless of whether their bank is large, regional, or local. Some of the criteria are the loan requirements which include the kind of collateral they ask for (if they do ask for collateral) and whether one may be required to make a down payment.
The other things one should look into in financing for startups are the repayment structure the bank can offer, the funding amount, and whether the bank understands the market one is in because some banks lend differently in different markets. Other considerations include the rate of interest and when all these factors are sorted out wisely, a startup dentist ends up on the winning side where funding for their startup practice is concerned. The question of buying a house comes up a lot from associate dentists because they can’t always tell whether they should buy a house first or build their practice, and Stephen advises them to build their practice first for a number of great reasons that he will dive into in detail.
Student debt is a widespread societal problem and it’s one of the biggest stresses and concerns for associate dentists in their startup practice ownership journey. Stephen will then share the fastest way for an associate dentist to pay off their student loans, and talk about associate dentists who have had up to $500,000 and $1 Million dollars in student debt, who still managed to get funding for their startup practices. He will dive into the 100% pay-off concept that can help any associate dentist begin working on their future practice ownership, starting today. You won’t wanna miss this episode, because you can’t possibly find the kind of actionable practice ownership advice that you will get here. Stay tuned!
Key Points Discussed:
- Your own financial preparation and things that you need to consider on a personal level as well (02:16)
- Ranking banks based upon their approvals (04:08)
- Looking at a bank’s loan requirements and the repayment structure one can get (08:23)
- The importance of a bank understanding the market one is in (10:42)
- To buy or build a home or start a practice first (16:32)
- Laying out strategies for the fastest path of paying down student loan debt (22:18)
- Some optimism for everybody that has student loan debt (26:25)
- Accelerating your debt repayment much faster through practice ownership (29:34)
- The benefits of staying on the income-based repayment options for as long as you can (31:56)
“No money no practice”
“Interest rate is going to be relevant, but it’s not as relevant in today’s environment as you think”
“Practice ownership will give you that path of paying off your student loans”
- The StartUp Crew Facebook Group For Associate Dentists
- Ideal Practices Website