North Texas Dentistry Convention Issue 2014 | Page 22

Q: What is the most important advice you can offer dentists? TA: For the seasoned dentist, it is critical to keep in mind that profitability is more important than production. Although the allure of becoming a multiple practice owner is tempting, personal liquidity should be achieved before expansion. Tom Angeloni Vice President Bank of America Practice Solutions [phone] [email protected] A At Bank of America Practice Solutions, we know that obtaining a competitive rate is essential to any dentist seeking financing. While we also understand the importance of rate, experience dictates that optimizing monthly cash flow has proven to make the definitive difference between success and failure in many practices. You can count on us to provide extensive expertise, helpful loan solutions and the attention to detail you and your practice deserve. Q & New dentists have different challenges to overcome. They should first surround themselves with specialists in the industry who can offer expert advice based on experience. When choosing between financing options, cash flow is “king”. New practice owners need to focus as much on term and repayment structure as they do on interest rate. Q: What is the most common financial mistake dentists make? TA: The under-prioritization of a well thought out savings/pension plan, from day one, is becoming a common occurrence when managing personal finances. Misplaced priorities can also be a problem in managing the practice. Dentists frequently launch too many locations too quickly or focus so much on production that they get distracted and fail to keep a watch on profitability. Today, too many new dentists start off without clear guidance or a well thought out financial plan. Rapid growth is not always the path to financial stability. Q: What roadblocks are dentists encountering when applying for a loan? TA: Dentists are not immune to the problems that are rampant across our country. Many depend on revolving credit to maintain both their practice and their personal lifestyle. This can lead to a whirlpool of credit card debt that threatens their financial future and can make it difficult to acquire a loan. Bank of America Tom Angeloni 22 NORTH TEXAS DENTISTRY | www.northtexasdentistry.com Many new graduates also look to open a practice with little to no experience. Associating first will provide both the clinical and business experience necessary for success. Although planning for growth is a key factor in the project phase of a new practice, starting with an oversized practice can result in cash flow issues and also hinder the likelihood of an approval. Q: What special services do you offer that are a particular benefit for the dental practice? TA: While traditional banks offer little to no dental-specific benefits, Bank of America Practice Solutions (a Dental specific lender) offers a number of invaluable services to the dentist. A local industry specialist is available to advise on all facets of a dental project. We have a team of business professionals to assist with budgeting, performance analysis, marketing, industry standards and more. When dentists are setting up a new practice, we can offer demographic reports to assist them with identifying the best location for their office, as well as a complete suite of products designed to support the efficient operation of the practice – including checking, merchant services, payroll, and so on.