Financing a dental practice, are you ready?
Acquiring a dental practice is a significant financial commitment, but it also presents an exciting and fulfilling opportunity. However, the process can be complicated, and seeking professional guidance from the start is highly recommended.
It is advisable to work with financial experts who specialise in the dental sector and have ample experience in guiding buyers through the key aspects of practice acquisition. They comprehend the intricacies of practice purchases and recognise that entering the world of practice ownership can be daunting. Hence, their specialised assistance is invaluable.
Securing a loan
To secure a loan, it is imperative to create a comprehensive business plan that includes details of the practice, such as its objectives, historical accounts for the past three years, staffing levels, opening hours, and proposed working arrangements. Evidence of management experience within a practice is incredibly beneficial when presenting your CV for you finance application.
Engaging the services of a finance broker can save you time and stress by allowing them to search for lenders on your behalf. Banks typically require a cash deposit from the purchaser, usually ranging from 10% to 25%, although this may vary depending on the lender's criteria. However, in some circumstances, for both first time buyer and established owner, they may consider 100% lending. The bank will study the buyer's management of finances, projected income, and how the practice will operate in the future to ensure that loan repayments are feasible.
Finance broker services
Interest rates on dental practice loans have remained low in recent years, and specialist healthcare lending teams in major banks take charge of loan approval. By using the services of a finance broker, you can access a wide range of finance deals and benefit from preferential rates that can be fixed or variable.
If you already own a practice, a specialist financial broker can also assist you in refinancing which could potentially result in significant savings. The bank's final loan agreement is contingent on an independent valuer's practice valuation, which should match the practice's purchase price. A team of dedicated dental practice brokers can help negotiate terms that meet your unique requirements and budget, ensuring you secure the most competitive and suitable financing for your prospective purchase.
If you'd like to know more, please do not hesitate to get in touch.