Buying a dental practice will quite possibly be one of the biggest financial decisions you make in your career, and for many it will be a transaction that is taken just the once. This means that if you’re a first-time buyer getting the right financial advice is crucial from the very start and working with an independent commercial finance broker will ensure you are in the strongest possible position.
David Brewer, managing director of FTA Finance, explains, “At FTA Finance, we work with dental professionals who aspire to become practice owners and have a wealth of experience and knowledge in supporting first-time buyers secure competitive and flexible terms. Being independent means that we are free of any ties to lenders and will always look for the best funding package for our clients. We take a whole of market view and have access to a wider range of funding options than an individual borrower would be able to secure by approaching a bank direct, so this allows our clients to get the right deal that suits them best.”
“For those looking to buy a dental practice in 2024, there is good news. The banks continue to view dentistry in a positive manner particularly to first-time buyers looking to step on to the ownership ladder.”
“As a first-time buyer, you need to get it right from the very start – there are rarely any second chances when it comes to arranging funding.”
“It’s important to fully consider if a practice you have set your sights on is a viable acquisition and that’s where the expertise of a commercial broker really comes into play. Most practices are ‘fundable’, if the right lender is approached, although key for any potential buyer is to ensure they plan and prepare in advance to present the bank with as comprehensive a proposal as possible – something that we always do when working with our clients.”
“All business plans and forecasts we prepare reflect both the buyer and the practice in the best possible light. It’s vital to clearly outline how the business will be run and demonstrate the practice is (or will be) profitable to ensure a positive lending response and to secure competitive and flexible funding terms.”
“If you’re a first-time buyer, it’s important that you talk to an independent broker as early as possible – and definitely before you approach a bank directly (even if you have banked with them for years!). We know from experience that the banks are all different, and offer different lending/credit criteria, so it’s vital the right one is approached.”
“In the last 12 months we submitted 175 funding proposals for first time buyers to the banks, of which 95% were approved. We know full well that if clients approach the lenders direct the likelihood of a positive lending decision is sizably reduced.
As a first-time buyer, working with an independent adviser will not only give you the peace of mind that you’ve had a whole of banking market overview, but will also ensure your business plan and forecasts are properly and accurately prepared.
A broker will do all the hard work for you such as negotiating on your behalf with the banks to ensure flexible and competitive terms and will liaise with Accountants, Solicitors, Sales Agent, the bank, the bank valuer and more often than not these days with the CQC, to ensure a smooth and seamless purchase from start to finish.
If you’re serious about buying a dental practice in 2024, it really is advisable to let the experts work with you throughout the process so that you achieve your dream of practice ownership.
Get in touch today on 0330 088 1157 for more advice.