Unlocking Opportunities: a Dental Practice Purchase with Zero Deposit

dental practice purchase

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We recently obtained term loan approval from Lloyds Bank to finance a dental practice purchase, achieving 100% funding of the purchase price. 

While we can usually secure 100% funding for the purchase of a Freehold dental practice building, it is less common to obtain the same level of financing for the business goodwill.

Lenders specializing in financing dental practice purchases often require a cash contribution. This emphasizes the importance of having ‘skin in the game.’ The specific cash deposit amount can vary depending on the case. With some lenders requiring as much as a 30% cash deposit.

How did we accomplish this?

The clients, who are experienced dental practice owners, currently have a practice with minimal debt. Leveraging the value of their existing practice, we were able to secure financing for the new practice. As a result, although the new practice is fully financed, the Loan-to-Value (LTV) ratio of the new practice finance facility in relation to the combined valuation of both practices is closer to 50% LTV.

Quick and efficient – our preferred approach

While there are expected security and guarantee requirements for a facility of this nature, we managed to secure this deal, pending valuation, within a week of the application. This ultimately leads to our client’s satisfaction and happiness! 

Why choose a broker for a dental practice purchase?

  • Benefit from a single point of contact with extensive experience.
  • Receive independent advice from a fully FCA-regulated advisory firm.
  • Leverage established relationships with Practice Finance lenders.
  • Access preferential rates that are unavailable when dealing directly with a bank.
  • Receive professional guidance throughout the finance process.
  • Obtain fast-track indicative terms to provide you with quick reassurance.
  • Enjoy ongoing support for future 

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