Renovating or redeveloping? Here’s how to expand your veterinary practice

Renovating or redeveloping? Here’s how to expand your veterinary practice

December 15, 2015

In an earlier article we showed you the easiest ways to purchase a veterinary practice. Now that it’s yours, you might find you need to make some refurbishments – or maybe you want to expand and redevelop. When you’re planning on renovating a veterinary practice, there’s a few different factors you’ll need to consider before applying for finance:

 

  1. Budget – knowing how much you can afford makes it easier to choose a repayment plan that suits your needs.
  2. Timing – when you start your project and how long you expect it to take can have an influence on the type of funding you’re eligible for.
  3. Building regulation or planning permissions – in most cases, you need to have the necessary planning permissions before your loan can be disbursed.
  4. Additional equipment – with bigger spaces you’ll need more equipment. Consider a type of asset finance to fund these purchases.
  5. Architects or designers – it’s not just the cost of building equipment and bulldozers. You’re also likely to need an architect, designer, or other adviser to make sure everything goes according to plan.
  6. Hidden costs – there are almost always hidden costs when taking on a renovation project. Working with a trusted adviser such as your accountant can help you navigate these costs without throwing off your funding plans.

 

When you’ve considered all these factors, you’ll most likely be interested in a development loan. Development loans are intended strictly for renovation or refurbishment products, and there are loan products specifically designed for the veterinary sector.

 

  • The loan provider will advance a certain percentage of the Gross Development Value of a property – a rough calculation of how much the property will be worth once development has finished.
  • The only essential requirements for obtaining a development loan are a knowledge of the development process, the necessary planning permissions, and an exit strategy for when the work is finished – selling or refinancing, for example.
  • Unlike other forms of property finance like commercial mortgages, development loans are short-term, typically lasting up to twelve months.

 


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Sarah Thornton

Content writer