If you’re considering buying a dental practice, you may wonder whether you should use a Commercial Finance Broker to help you with financing. The answer is yes, and here’s why:
A Commercial Finance Broker is a specialist with experience, skills, and contacts that can help you find the best finance package in terms of price and flexibility for your business. In the past, branch-based bank managers were the go-to for funding practice and business purchases. However, with the banking industry changing dramatically in recent years, traditional healthcare lenders have found their credit policy unable to keep pace with the ever-changing market. As experienced branch managers leave the industry, it becomes a challenge for clients to get consent for funding applications, and even if approval is granted, it is rarely at the best available terms.
New lenders have entered the market, which is good news, but it is difficult for clients to know if the terms offered are competitive. Additionally, it is essential to ensure that security requirements and covenants are in line with what you would expect to see in the healthcare sector.
A Commercial Finance Broker works for you and is not tied to any one lender. They will give you access to far more lenders and potentially more attractive loan terms than you would find as an individual applicant. By preparing your business plan and forecasts and packaging your proposal in a ‘bank-friendly’ format, your proposal will be given priority. By approaching more than one bank, a degree of competition between the lenders will exist, ensuring you get the best terms.
Your Commercial Finance Broker will have developed close working relationships with the main high street banks together with smaller niche providers and will be aware of their varied credit policies and pricing structures.
Your broker will shape and tailor a funding proposal to ensure you are portrayed in the best possible light for a positive lending decision. They will guide you on rewriting your CV, expanding on managerial experience, business plans, and profitability assessment.
Your broker should provide guidance throughout the whole purchase process to ensure smooth progression to drawdown, including ongoing contact with the banks, sales agents, accountants, solicitors, and bank valuers to cover any issues that may arise during the purchase process.
Your broker should be FCA registered and ideally members of the National Association of Commercial Finance Brokers (NACFB) and therefore adhere to stringent standards and guidelines. An experienced finance broker will save you time and do the time-consuming leg work in terms of proposal preparation, freeing your time up for both your business and your home life.
In summary, a Commercial Finance Broker is on your side, with multiple lending options and will treat you as an individual. They will not just source your loan but will guide you throughout the whole purchase process to ensure you achieve your dream of practice ownership.