Withdrawing funds from your business to buy dental equipment, invest in a new practice or even just ease cash flow difficulties can be difficult. This is where a goodwill loan might help. Goodwill finance allows you to enjoy the wealth you have created or use it to reinvest in your dental practice without having to use your property or other assets as security.
If you run a profitable dental practice but could do with some additional funds to support the next step in your journey, then get in touch with Rangewell to start your goodwill loan application today.
What is a dental practice goodwill loan?
A goodwill loan, also known as a capital withdrawal loan or a “cash-out”, is a common way to finance a dental practice. It can let you access the value in your practice without withdrawing funds from it. It works by allowing you to use goodwill built up in practice as the security for a loan, which you can use for a wide range of purposes.
What can a goodwill loan do for your business?
A goodwill loan is secured on the value of the future of your business. It can bring you a sum comparable to your annual turnover, typically between £50,000 and £500,000, with repayment terms of up to 15 years.
It could let you buy your premises or invest in the latest technology. The benefits of a goodwill loan include:
- Access large amounts of funding
- Spread loans over a long period of time
- Avoid using property or assets as security
- Flexible repayment terms
- Opportunity to combine with jigsaw funding
- Available to smaller practices, such as squat dental practices, given you have a good track record
To find out whether you qualify for a goodwill loan or explore otherfunding opportunities for your dental practice, speak to Rangewell's expert advisors today. We work with dentists all over the country to find and secure finance to suit them.
How you can invest a goodwill loan
Another benefit of goodwill loans is that you are not restricted to what you can spend them on. So, however you are running your dental practice, you will have unique business goals that you are working to attain - and goodwill finance can help to turn these into a reality.
Common ways in which dental practices can spend a goodwill loan include:
- Supporting the cost of opening a dental practice
- Supporting a wider refinancing strategy
- Purchasing new equipment or having existing assets maintained or repaired
- Hiring a new dentist or member of support staff
- Refurbishing or expanding your practice
- Marketing your business
- Boosting cash flow
There are a few limits on what you can do with your loan. For example, you can’t use it to pay off your mortgage on your primary home. A goodwill loan can give you a great deal of extra spending power while letting your dental practice retain the funds it needs to operate and grow.
And when you work with Rangewell, it’s easy and fast to arrange. The lender will need to review your accounts for the last few years to make a decision. Interest rates will be agreed upon when the loan is taken out. Although they will be variable, they are likely to remain significantly more favourable than other lending types.
Goodwill loans can be arranged at short notice, and there is no need to provide any deposit or additional security.
At Rangewell, we have already helped many dentists enjoy the financial benefits of their hard work with goodwill loans. Our expert advisors can explain the potential of this type of lending and help you approach the most suitable lenders. Get in touch today to find out more about the different types of dental practice finance available.