A business loan's price in Sidney, OH is its annual rate plus any fees, set by a funding partner after it reviews the request. A merchant cash advance is priced another way, with a factor. Term, amount, what backs the money, time in business, deposits and credit may all move a loan's rate. This article works one invented dental office loan and one invented advance.
The inputs a funding partner may weigh when it sets a rate, an invented dental office equipment loan at 36 and 60 months (the longer term lowers the payment and raises the interest), and an invented merchant cash advance at a 1.29 factor: what it costs per dollar and how many card-sales days it takes to collect.
Dental practice loan rates in Sidney, OH: the inputs a funding partner may weigh
This site quotes no rates, and Drifthaven Business Capital does not set them. A funding partner sets its own after reviewing a request, and these inputs may move the number for a dental office or any other business:
- The term: more months spread the balance thinner and leave the money out longer.
- The amount, and what backs it: an equipment loan is secured by the item, and an item with many possible buyers may resell more readily than a custom one.
- Time in business, and the bank deposits that show how money comes in.
- The owner's and the business's credit history, which a partner may check while it works through the file.
- Payments the practice already makes on other loans or leases.
Offices of dentists numbered 10 employer establishments in Shelby County, OH in 2023, with 89 employees and $5.3 million of annual payroll (County Business Patterns). ZIP Code Business Patterns for the same year put 8 offices of dentists at a ZIP 45365 address.
Dental business loan rates over 36 or 60 months: one Shelby County, OH office's equipment order
Illustration only, invented figures: a dental office finances a $43,860 order (an intraoral camera, a sterilizer, an ultrasonic cleaner and a set of electric handpieces) at an invented 11.35% annual rate, and compares two terms.
| Term | Monthly payment | Total of payments | Interest |
|---|---|---|---|
| 36 months | $1,443.20 | $51,955.20 | $8,095.20 |
| 60 months | $961.30 | $57,678.00 | $13,818.00 |
Moving the invented order from 36 to 60 months shrinks each payment by $481.90, and the office hands over $5,722.80 more in interest before it is done. The rate stayed the same in this invented case; only the term moved. When two offers carry different rates and terms, the loan calculator on this site gives each one's monthly payment for the same comparison, and the equipment financing page covers loans secured by the item itself.
What a factor rate is: the price of a merchant cash advance for a Sidney, OH auto repair shop
The merchant cash advance sits outside that pricing because it is not a loan at all: a provider buys part of a business's future card sales at a discount, and the price is written as a factor: the advance times the factor is the total the provider collects.
Illustration only, invented figures: a Sidney, OH auto repair shop takes a $10,750.00 advance at a 1.29 factor, so the provider collects $13,867.50 in all, $3,117.50 more than the advance.
The factor does not move with time. The invented $3,117.50 is the same whether the total is collected in three months or six, which is why a factor cannot be read as an annual rate.
How to calculate what a factor costs per dollar and how many card-sales days it takes
- Multiply the advance by the factor for the total collected: $10,750.00 x 1.29 = $13,867.50 in this invented case.
- Subtract the advance for the cost: $3,117.50, or 29 cents per invented dollar advanced.
- Multiply average daily card sales by the holdback for the daily amount collected: an invented 10% of $1,385.00 is $138.50.
- Divide the total by the daily amount and round up: $13,867.50 / $138.50 = 100.13, so 101 card-sales days in this invented case.
If the shop's invented card sales averaged $1,820.00 a day instead, the holdback would take $182.00 a day and the same total would be collected in 77 days: the same 29 cents per invented dollar, paid over a shorter stretch. A term loan or a line of credit, priced by annual rate on the balance, charges less in dollars when it is paid off sooner.
By Drifthaven Business Capital · Updated
