Early Compensation for a Dentist

[johnho771]

I know threads like this have been discussed in the past, but with the ever increasing cost of tuition, I think it would be good to get some comments on what dentists are currently making in their first or first couple years of practice. If you have stories, is the dentist an owner or associate and also location?

---

Members don't see this ad.

 

[Blake1e]

Ive read accounts here that working in a corporate chain for the first year or so after graduation earned them a salary that was on par with the nationwide median. So I dont think the first few years of the job is going to be a too harrowing moment in your life.

 

[RU1992]

Can anyone confirm that the first few years after graduating would earn me a salary of about $140,000 if I decide to work in a corporate chain like Aspen Dental (I don't know any other corporate chains honestly)?

 

[NDPitch]

Even if a corporate chain could pay me that kind of money, I still think I'd go elsewhere. Corporate dentistry is terrible for organized dentistry, in my humble opinion.

 

[suarez 7]

From what I've read, Aspen's salary ranges from 80k-120k. Anyone who is earning higher than that in a corporate chain is really moving around from one chair to another. It's quite hectic which is why most people don't last longer than a year.

 

[CMistry]

Nobody can tell you what you will realistically earn at a corporate office because they are based on production and often have no base pay. It is very dependent on the individual. I would guess that suarez's response is correct but I am not sure. You will most likely start at $100-120k and work your way up from there. Yes there are new grads that make $150k and for every one of them there is one that makes $75k. Don't expect to be in the top 5%.

 

[Rlow04]

You will most likely start at $100-120k and work your way up from there. Yes there are new grads that make $150k and for every one of them there is one that makes $75k. Don't expect to be in the top 5%.

Exactly. Everyone thinks they are above average, when in reality you're probably sitting right above or below average. And if you're dead-set on working in a specific location or city, expect to make below average.

 

[Localnative]

Just skimmed a thread regarding the newest tuition breakdown and repayment schedule for USC Dent. Considering the startup costs of hanging a general dentistry shingle, will any bank loan you even a cent if they look at those numbers???? This is how corporate will continue to thrive. With exponentially rising tuition costs and those huge interest rates, it's no wonder new grads are essentially being forced into feeding the corporate underbelly.

Something's gotta give my fellow colleagues.

 

[Silent Cool]

Just skimmed a thread regarding the newest tuition breakdown and repayment schedule for USC Dent. Considering the startup costs of hanging a general dentistry shingle, will any bank loan you even a cent if they look at those numbers???? This is how corporate will continue to thrive. With exponentially rising tuition costs and those huge interest rates, it's no wonder new grads are essentially being forced into feeding the corporate underbelly.

Something's gotta give my fellow colleagues.

Yup. I agree. It is very sad. I think the best option for those with large debts is to move where your services are NEEDED and work as hard as you can for a couple of years, live like a college student, and put all of your disposable income to your debt. Then you can relax a bit and perhaps look at a buy-in or a buy-out.

 

[yappy]

Just skimmed a thread regarding the newest tuition breakdown and repayment schedule for USC Dent. Considering the startup costs of hanging a general dentistry shingle, will any bank loan you even a cent if they look at those numbers???? This is how corporate will continue to thrive. With exponentially rising tuition costs and those huge interest rates, it's no wonder new grads are essentially being forced into feeding the corporate underbelly.

Something's gotta give my fellow colleagues.

I spoke to a CFO of a local bank about this (personal contact) and I was surprised to find out that my student loans will not be a concern when determining my eligibility to receive a loan for a dental practice. He said the only things they care about are having about a year of earnings, the financials of the practice, and my credit. His words were "Yappy, as soon as you have the chance you need to get your own place because thats where I see our dental and medical clients do well".

 

[gryffindor]

I spoke to a CFO of a local bank about this (personal contact) and I was surprised to find out that my student loans will not be a concern when determining my eligibility to receive a loan for a dental practice. He said the only things they care about are having about a year of earnings, the financials of the practice, and my credit. His words were "Yappy, as soon as you have the chance you need to get your own place because thats where I see our dental and medical clients do well".

Maybe local banks are different. But if you only make $80K in your year of earnings, they won't approve you. And they do look at your student loans so I don't know what he was talking about. I tried to buy an xray machine and had to list all my loans and my spouse's loans. If you are buying a profitable practice, it might be a little different. If you are proposing to borrow for a startup, they will scrutinize everything.

 

[yappy]

Maybe local banks are different. But if you only make $80K in your year of earnings, they won't approve you. And they do look at your student loans so I don't know what he was talking about. I tried to buy an xray machine and had to list all my loans and my spouse's loans. If you are buying a profitable practice, it might be a little different. If you are proposing to borrow for a startup, they will scrutinize everything.

He said that the loans were completely separate because one was tied to personal credit while the other was tied to the financials of a business. If you fail they will simply seize your commercial business and liquidate like any other asset. Taking out a loan on a dental practice is not like a home loan, credit cards, or any other personal debt. It's a discrete loan predicated on the profitability of a dental practice. Though, as you suggested, maybe each bank has their own policies on how they issue loans. This guy manages how loans are issued at his institution (along with all other financial issues of his bank) so I feel that he is a trust worthy source. It seemed that his main focus was cash flow rather than personal debts.

 

[UCSFx2017]

I spoke to a CFO of a local bank about this (personal contact) and I was surprised to find out that my student loans will not be a concern when determining my eligibility to receive a loan for a dental practice.

As long as you can mitigate a lender's risk by signing a collateral assignment of a reasonable sized life, disability, or business overhead insurance to your lender, you shouldn't be limited in obtaining a business loan. Depending on how much you want to borrow, you'll probably have to sign an insurance collateral if you've got zero liquid capital. Although the bank's investment is secured with an insurance collateral, they won't receive a cent until you die or lose your ability to work in case your business fails so they're still concerned with the success of your business. This is where your CFO's comment confuses me. If "cash flow is king", why would student debt, which considerably reduces cash flow, not be a concern?

If you're borrowing to open a brand spanking new practice, they'll have no history of a sufficient cash flow to make an investment of low risk, making it less likely for you to both obtain a loan and qualify for 100% financing at a decent interest rate. Assuming they only have your low associate's salary, they'll have little to bank on your success, especially if you've got a lot of money going out than in due to student debt. Think about it; not only do you have a small associate's salary but you're also paying for student loans, living expenses, health insurance, life insurance, disability insurance, and now for a $350K (because that's the typical loan cap for a newly grad) small business loan. How much would you be willing to risk on someone with that much money going out every month? Probably not much unless they minimize monthly losses by extending high student loan repayments out to 20 maybe 30 years. Then they'll ask you what kind of practice you're going for and you say that you want to focus on cosmetics. Too bad because they know cosmetic procedures took a downturn since the recession and now they'll offer less than 100% financing. Just speculating.