Dental Practice Purchase Finance
Funding your dental practice purchase
The scope on lending for a practice purchase has many considerations and variables. As advisers we will explore all avenues banks and building societies provide on your behalf, in order to secure the best possible deal that fits with your individual requirements.
When buying a practice there are considerations which we will advise and assist you on:
Vary with different banks and practice types
These are evaluated by applying the dental specialists’ lending criteria, along with consideration of your own personal situation relating to cash at bank, assets and liabilities. If you have properties which have equity in them, these can be utilised for second charges as many lenders have various maximum unsecured lending limits. This can then be utilised to increase the level of lending for a practice purchase to be considerably higher.
Serviceability is another important consideration for the banks and is done on a case by case basis. Their assessment of working capital ensures that the loan is serviceable, as banks like to be certain that when all drawings and loan repayments are taken from the business, to still have surplus cash to cover living costs comfortably.
Government EFG Scheme
Assists with higher unsecured lending limits, but will restrict you with regards to the maximum loan term and an additional annual premium is charged
Changes to Personal Circumstances
if these change it can effect lending levels, please inform us and we will be more than happy to re-assess
Preferential Lower Lending Rates
We have a great relationship with heads of healthcare in our respective healthcare panel of 14 lenders and so receive preferential rates. Once you have found a suitable practice, you can contact us even prior to making an offer so we can assess the business performance and advise accordingly. If it is then viable, we can then approach the lenders to provide indicative loan terms for the practice purchase. Upon receiving these from 14 banks, we will create a full profile for you and by packaging your case to the banks to secure the best possible deal.
STAGE 1 - Review current assets and liabilities
An understanding of the individual’s current financial situation will allow us to ascertain the upper levels the banks will go up to.
STAGE 2 - Finding a practice
Prior to even viewing a practice, if you have found a particular practice you are interested in, by providing us with the basic details we will profile the practice to the 14 specialist healthcare banks to see if and see if it is a financially viable proposition for you and them. This will give confidence in not losing a deposit paid to an agent for a practice purchase if the banks will not fund it.
I have found a practice I like
STAGE 3 - Supply details and accounts of practice found
Once there is a target practice the banks require documentation in order to give a loan in principal. This bundle of documents is paramount in attaining a practice loan, Henry Schein Financial Services will guide and compile this bundle of documents and ensure they are sent to the banks.
STAGE 4 - Create business case package and approach 14 banks for best deal and rates
A full business case detailing the current business and where the business will be under the new owners is created on behalf of the individual by Henry Schein Financial Services. This is then sent to the banks along with all other documentation required to source the required funding.
STAGE 5 - Review insurances required by banks and put these in place
When a practice is purchased, banks will require relevant insurances to be in place on the day of completion. With each case being individual, Henry Schein Financial Services will review the requirements and generate the relevant cover to suffice the bank’s needs.