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
