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Could anyone suggest a good lender to use to get a loan to purchase a private general practice? Thanks!
Purchasing a Private Practice
- Thread starter Staring@theSun
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Depending on whether you are purchasing a medical or dental practice, I would contact your respective organization AMA or ADA to ask what lenders they know of, or you could check the back of their most recent periodicals or local journals for their advertisments. Dental or medical suppliers can give you leads too. Lending organizations that cater to medical and dental offices and specifically provide financing for the purchase practices and/or equipment often offer reasonable rates and are set up to make the process easy. Good Luck.
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First, moving to the finance forum as that is the more appropriate venue for this discussion.
Second, as someone who has helped others purchase practices in a former life, your best bet would be to approach local lenders and inquire about healthcare financing. Some banks lump doctor acquisitions in with regular loans (since usually they are only a few hundred thousand) and then have a different division for larger healthcare acquisitions and supplies. Every bank is different. The reason why I said approach local banks because those are the banks that will be more willing to bend for you than some of the large corporations. Working for a local bank we could offer multiple services to our potential customers including cash management, insurance, retail banking, etc.
Since you are a professional (whether it be physician or dentist) it is understood that your income stream will be there. Unless your credit is really bad you shouldn't have a huge issue getting a loan but you might have to disclose more financial information than you want (this was the #1 major complaint that most gave me) and you might have to use something to secure this purchase (#2 major complaint). You'd be surprised at the number of doctors out there who live WELL BEYOND their means and destroy their credit. I hope this helps a little bit but I'm sure you already knew most of it. 🙂
Second, as someone who has helped others purchase practices in a former life, your best bet would be to approach local lenders and inquire about healthcare financing. Some banks lump doctor acquisitions in with regular loans (since usually they are only a few hundred thousand) and then have a different division for larger healthcare acquisitions and supplies. Every bank is different. The reason why I said approach local banks because those are the banks that will be more willing to bend for you than some of the large corporations. Working for a local bank we could offer multiple services to our potential customers including cash management, insurance, retail banking, etc.
Since you are a professional (whether it be physician or dentist) it is understood that your income stream will be there. Unless your credit is really bad you shouldn't have a huge issue getting a loan but you might have to disclose more financial information than you want (this was the #1 major complaint that most gave me) and you might have to use something to secure this purchase (#2 major complaint). You'd be surprised at the number of doctors out there who live WELL BEYOND their means and destroy their credit. I hope this helps a little bit but I'm sure you already knew most of it. 🙂
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I know this wasn't part of the OP's question, but make sure you have an attorney who has experience in these matters represent you. It'll cost you a thousand bucks or two, but it could save you a bundle. If your attorney doesn't have experience with accounting, you may also need an accountant to look over the books for you.
Ed
Ed
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