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Owning a dental practice often feels like standing on solid financial ground. The practice generates consistent revenue, banks are willing to extend sizable loans, and it’s easy to believe those resources can be stretched to cover more than just the business. That’s where many dentists take a wrong turn, using practice loans or credit lines to fuel personal projects.
What starts as a harmless shortcut can spiral into financial strain, tax headaches, and in some cases, the unraveling of both the practice and personal finances. Before crossing that line, here’s what every dentist needs to understand.
It’s not hard to see why. When banks hand out a million-dollar practice loan, siphoning off a portion for personal needs can feel like no big deal. After all, the practice “makes enough,” right?
The temptation is real, but the risks usually outweigh the short-term convenience.
Practice loans aren’t just big piles of money; they’re carefully structured for business growth. When funds are redirected, it disrupts both the loan agreement and the stability of the practice.
In simple terms, a practice loan is not your personal piggy bank.
At first, using practice loans for personal reasons may feel harmless. But the hidden costs show up quickly.
That “cheap” money can end up being the most expensive decision you ever make.
Dentists who blur the line between business and personal financing often learn lessons the hard way.
Each story ends the same: regret, financial pressure, and in some cases, broken professional relationships.
Mixing funds doesn’t just create immediate problems; it also weakens the practice’s future.
A healthy practice thrives when business debt fuels business growth, not personal spending.
If you’re eager to grow personal wealth, there are safer and cleaner ways than dipping into business loans.
Personal dreams shouldn’t be funded at the expense of professional stability.
Running a dental practice is already complex enough without blurring financial lines. When business loans are stretched into personal ventures, the risks multiply. What looks like a shortcut often ends up costing more, in stress, money, and missed opportunities.
Keep business debt where it belongs: in the business. Protect your practice, your peace of mind, and ultimately your future.
These insights aren’t theory; they come from real dentists who faced the fallout of risky financial moves. Want to hear how it unfolded in real life?Listen to Episode 127 of The Dental Boardroom Podcast for real-world examples of how loan decisions, good and bad, reshaped dentists’ financial futures.
Wes knows what's best for dental practices. He's been doing this for a long time and he sees lots of practices. He can tell me how our practice is doing, and what we can do to increase our productivity. With past CPA's, there were no ideas. It was all coming from me, saying "I think I can do better, but I don't know how." I come in to meet with Wes and he says "You CAN do better, and I know how."
PracticeCFO is in hundreds of dental offices around the country. They know what numbers should look like. They know what percentages of payroll, rent and supplies should be, and they will hold you accountable to those numbers, which will really help you stick to your plan and your path of growth and savings. That is invaluable
Whenever something comes up, whether it's building or practice related and we weren't sure where the numbers would go, PracticeCFO has been instrumental in helping us figure that out. I can't say enough of how important that is - that it goes beyond that initial partnership. They make sure this business marriage works.
When I go home from work, I don't spend a whole lot of time stressing about what my books look like, or how much I owe in taxes. By using PracticeCFO, the burden of keeping track of a lot of the big financial numbers and metrics are taken off my plate.
PracticeCFO helped me develop a plan for the future. I have colleagues that work with other accountants that don't have a plan - they just look at the numbers of the practice and that's it. There's no plan for 10, 20 years from now. But with PracticeCFO, you get that. PracticeCFO makes you feel like you're they're only client.
(In reference to his practice sale) What could've been super stressful, wasn't! When picking John and Wes, it was from word of mouth recommendations and other people's experiences from the past that really did it for me. And it turns out that those recommendations were right on the line.
Wes knows the business side of dentistry. His comprehensive plan will organize your personal and professional finances so you can focus on taking care of patients. Massive ROI.
I can’t say enough good things about everyone at PracticeCFO. Everyone on the team is professional, organized, knowledgeable, helpful and kind. They also respond to emails and phone calls immediately and are always happy to help. They have helped me navigate year-to-year as a business owner. PracticeCFO gives me peace of mind that my business is in good hands.
I love Practice CFO! They have helped me obtain a practice and maintain a practice. They are incredible people who are on top of everything and make owning and running the business portion of a practice easy. They couldn’t be better for my business and my sanity. They have every detail of the business and taxes taken care of where all I have to do is show up and follow their easy steps to success!
Practice CFO has the best tools I’ve seen for personal tax and financial planning in addition to top-tier corporate tax and accounting services. I have been very pleased with the level of quality service. They manage my monthly bookkeeping and accounts payable. It is a great system and saves me a ton of time, and it allows us to have monthly financial statements within a week of month end.
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