Cash-Out Refinance

Production per chair is a number every growth-minded dentist watches. What fewer track is the equity building quietly in the equipment that runs those chairs, and that equity is borrowable. A cash-out refinance lets you leverage the value you've built up in paid-down dental assets, receiving a lump sum while a new loan replaces any remaining balance on the original obligation. The cash goes where your practice needs it. The equipment stays where it is.

Most cash-out refinancing in dental involves assets that are two to five years into a financing term or owned outright with no encumbrance. The lender assesses current value, pays off any existing lien, and advances you the difference (or a portion of it) as cash. What you do with that capital is up to you: a third operatory, a front-desk renovation, an associate recruitment package, or a deposit on expanded square footage. We structure transactions from $50,000 with our most common range sitting around $100,000 to $150,000 and above.

How Cash-Out Refinancing Works on Dental Equipment

The mechanics involve three numbers: what your equipment is currently worth, what you still owe on it, and how much the lender is willing to advance against the asset's value. If your cone beam CT system was originally financed at $180,000 and you've paid it down to a $60,000 balance, and the lender values the equipment at $130,000, they might advance up to 80% of value ($104,000), pay off your $60,000 balance, and put $44,000 in your account. The resulting loan covers the advance with new terms.

Advance rates vary by asset type, age, and brand. Well-maintained cone-beam CT units from major manufacturers hold value well, as do CAD/CAM milling systems and fully equipped chair packages. Older or highly specialized assets may carry lower advance rates. Providing documentation of maintenance, service history, and condition supports a stronger valuation.

• Cash received at closing, not as a line of credit
• Existing lien is paid off and replaced with new loan
• Fixed monthly payment on the new term
• Equipment remains in your practice throughout
• New term length negotiated at closing

The Right Practice Profile for a Cash-Out Refinance

Cash-out refinancing works best for practices that are past the startup phase, have equipment with meaningful remaining value, and have a specific capital need that a new equipment loan doesn't address. The capital need matters: if you want cash to buy additional equipment, a separate equipment loan is often the cleaner solution. Cash-out refinancing shines when the need is operational, capital expenditure outside of equipment, or a one-time strategic investment.

Practices adding a second location while continuing to run a busy first one are a common fit. The existing equipment at location one has value. A cash-out refinance against that equipment funds the leasehold improvements, initial supplies, and working capital needed to open location two without touching the practice's reserves. Practices pursuing implant-center growth sometimes use this structure to fund training, marketing, and the guided surgery accessories that round out an existing implant setup.

Practices that paid cash for their equipment when they bought the practice or opened are also strong candidates. If you have $300,000 in owned dental assets and need $100,000 to $150,000 for a renovation or hire, a cash-out refinance monetizes what you already built without disrupting operations.

Rate, Term, and What to Expect

Cash-out refinancing rates sit in a similar range to standard dental equipment financing, adjusted for the blended collateral and the fact that you're advancing above any existing payoff. Rates are driven by credit profile, time in practice, asset type and condition, and the loan-to-value ratio of the advance. A higher-quality asset with low existing debt and a strong credit profile commands the best rate; a heavily depreciated asset with a large remaining balance requires more flexibility from the lender.

Term lengths generally run 24 to 84 months, depending on the asset and the advance amount. Many practices opt for 48 to 60 months to keep payments manageable while keeping the total interest cost reasonable. If your goal is maximum cash with the lowest payment, a longer term achieves that. If you want to be out of the obligation faster, a shorter term with a higher payment is the route.

A cash-out refinance and a Sale-Leaseback Financing are conceptually similar but structurally different. In a cash-out refi, you keep title and take on a new loan. In a leaseback, you sell the title and lease the asset back. The accounting and tax treatment differ, and your CPA should weigh in on which approach is more favorable for your specific situation before you close.

Timeline from Application to Cash in Hand

Once you submit an application with basic information about your practice and the assets you want to refinance, initial review typically takes 24 to 48 hours. For application-only transactions under approximately $400,000, no financial statements are required, which shortens the process considerably. Larger or more complex transactions, or those with credit challenges, may require three months of bank statements, two years of tax returns, and a year-to-date profit-and-loss statement.

After approval, the asset is reviewed (usually via documentation rather than a physical inspection for in-use dental equipment), and a term sheet is issued. Funding typically happens within one to two weeks of a completed application. The speed depends heavily on how quickly you return signed documents and whether there are any questions about existing liens on the assets being refinanced. For practices in Los Angeles, Dallas, or any other metro market, timeline expectations are consistent across geographies.

Find Out How Much Equity Your Equipment Can Unlock

Share the basics: what equipment you own, roughly what you paid and when, what you still owe if anything, and how much you're looking to pull out. We'll review your situation and come back with what's realistic from current lenders. No commitment needed for the initial review.