Practice Funding and Aquisition
The price paid for most practices consists of three elements, the property (freehold or leasehold), the goodwill, and equipment or vehicles. All banks and financial institutions will fund some part of the acquisition but very few will fund them all, particularly in the most appropriate way for your need at that moment in time.
The purchase of any property should ideally be done using a commercial mortgage. The rates and terms available for these products are highly competitive and they provide a useful element of longer term funding to aid cash flow.
The next element of the practice price is the goodwill. This is the value placed on the business because it already has an established client base and hence some guarantee of future profitability. From a lending perspective this is 'fresh air' and cannot be secured in anyway.
Should additional funding be required this can also be done on an unsecured practice loan payable over a shorter period, typically five to seven years. The unsecured loans can also be syndicated to maximise amounts available and spread the risk between lenders.
Finally there may be equipment or cars to fund. This can also be done utilising unsecured practice loans or on a Lease Purchase or Lease basis where appropriate.
Finding one lender with access to all these products can be a daunting and time consuming task, exclusivebenefits plc has access to a large range of banks and lenders all specialising in the provision of funding for the professional sector, and can ensure that the most appropriate and competitive range of financing products can be available for your needs in practice acquisition.
Simply call finance4chiropractors on our direct dial line:
01872 242800 for a non-obligation quote or further assistance from one of our experienced team.