The Dentalpreneur Podcast w/ Dr. Mark Costes 2365: Startup or Acquisition? A Banker’s Take on What Works Best
Oct 24, 2025
Danny Cammarosano, a Regional Director at Provide with over 20 years in banking and healthcare lending, shares invaluable insights into dental financing. He discusses the crucial factors lenders prioritize, like liquidity and practice metrics over mere credit scores. Discover why many dentists face rising default risks after three practices, and learn Danny's comparison of startups versus acquisitions. He emphasizes the importance of understanding term sheets and the benefits of early lender engagement. Get ready for a treasure trove of practical advice for dental practice financing!
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Provide's Fintech Origin And Bank Acquisition
- Provide began as a small fintech founded in Minnesota to simplify dental lending with digital tools and concierge service.
- Fifth Third acquired Provide in 2021 and kept its autonomy while adding bank capital and stability.
One-To-Two Practices Are Lowest Risk
- Dentists with one to two practices have extremely low default rates, making them attractive borrowers to banks.
- Default risk rises notably after the third practice because owners shift from operator to manager, increasing exit risk.
Prioritize Liquidity Over Total Debt
- Build personal liquidity because lenders prioritize cash savings over total student loan balances when evaluating borrowers.
- Focus on lowering monthly debt payments since banks calculate debt service coverage based on monthly obligations.