Considerations for achieving the most competitive loan
Andy White explains what you need to know before applying for a loan.
For many principals, the recent surge in associate dentists looking to buy a practice is reassuring. The challenge for these associates is to find the right practice when competition is fierce. Among the many elements of the process that buyers will need to consider is how to finance the purchase, with one of the most popular options being through a bank loan. Despite the economic climate, it is encouraging for many associates that the banks continue to view dentistry as a “green light” sector and are, therefore, prepared to offer generous terms to first-time buyers.
Securing a bank loan to buy a dental practice is as involved as a mortgage application for a house, if not more so. Lending criteria will vary from bank to bank and each will have their own preferences as to the type of client they wish to lend to. Most banks tend to lend on an unsecured basis up to a certain level, which means they will want you to demonstrate that you are a secure and reliable candidate capable of repaying them. This emphasises the importance of being as prepared as possible before you even approach the banks for a loan.