Can you arrange a bank loan yourself?
In this video, Andy Acton and Chris Strevens discuss how to get the best bank loan for your dental practice.
For those who aspire to ultimately become practice owners there is good news. The banks very much view dentistry as a ‘green light’ sector. They are prepared to offer generous terms to first-time buyers.
However, there are a few things you need to consider before you view or place an offer on a practice.
Influencing the lending decision
It is easy to just approach your current bank and ask them to lend you the money for the purchase. But this doesn’t guarantee you’re getting the most competitive rates.
Also, don’t make the mistake of approaching just one bank directly. They will only outline what their own lending guidelines will permit, which may not be the most favourable.
The banks are all different and all have different lending criteria.
Having the right documentation to support your application and present you in the best possible light also plays a vital part. It could make all the difference to a lending decision.
Most banks would expect to see a business plan, background on you, background on the practice you’re looking to buy, the changes you’re looking to make and also the impact this will have on the practice income and profits. Don’t underestimate the time it takes to pull all this together.
Working with banks
Whilst you can try to do all this yourself, it’s advisable that you work with an independent adviser who is authorised by the FCA.
An independent adviser can work with all the banks, including smaller ‘niche’ lenders. They’ll know the right bank managers to approach, giving you peace of mind that you’re getting the most competitive deal.
They’ll also take the time to put together all the paperwork needed for the banks, will do all the negotiating on your behalf, and, once you do get the funding you need, they’ll work with you to the very end of the purchase to ensure everything goes through smoothly.
For more advice please give Frank Taylor & Associates a call on 0330 088 1156.