100% finance to buy a new site for your opticians practice
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100% finance to buy a new site for your opticians practice
Getting the right site for your optician practice is essential.
The right location with plenty of passing trade, with ample display space as well as a consulting room is essential.
You probably won’t want to move the practice in the future - your customer identify your business with your location. So you’ll need room for expansion as well as for your current operations.
So if you are planning to be in business form many years to come, it may make sense to buy rather than lease your property. Of course, this will mean major property investment, and the costs won’t stop there. You will need to refurbish it, and set it up with new equipment in both the consulting and retail areas.
At Rangewell, we work with opticians across the country. We can help you use your special status as a professional to get up to 100% funding when you want to buy your business premises by using a combination of lending types.
The advantages of buying your own premises.
- You may reduce your monthly outgoings by buying rather than renting
- You can increased security for your business
- You can remodel or extend your premises
- You can secure additional income from renting out unused space
- You can secure a valuable asset for your practice
Using a Commercial Mortgage to buy your premises
A Commercial Mortgage is simply a large-scale, long term loan. It works much like a residential mortgage.
Lending is secured on the commercial property that you are buying. Loans are available from around £75,000 and upwards with no set upper limit, and repayment terms may be over 20-25 years.
Repayment options are similar to those for the residential market, but interest rates - which will be variable - will be a little higher, and will be set by the lender on an individual basis.There will also be valuation, arrangement and legal fees when you apply. An established practice with good trading history and positive prospects should be able to secure the most attractive rate.
If you are buying a property for your businesses to occupy, you can normally get a maximum loan-to-value of around 80%, although rates may get better the larger deposit you can offer.
A Goodwill Loan can provide the deposit
Your practice is unlikely to have a reserve of cash for the deposit required to secure a Commercial Mortgage.
A better solution - if you already have a practice - may be to take out a Goodwill Loan.
Goodwill Loans, also known as Capital Withdrawal Loans or Cash Outs are a special kind of lending only available to opticians and other established healthcare professionals in the medical sector. They allow you to to access the value built up in your practice without withdrawing funds from it by taking the the goodwill built up in your practice as the security for a loan.
A Goodwill Loan can provide a sum comparable to a practice's annual turnover, typically between £50,000 and £500,000, with repayment terms of up to 15 years. Interest rates will be agreed when the loan is taken out, and although they are variable, they are likely to be more favourable than those available with other types of lending.
Goodwill Loans can often be arranged at short notice, and there may be no need to provide any kind of deposit or additional security. They can actually be used for almost any purpose with the exclusion of buying your main home.
100% finance to buy your premises
As a professional with your own existing practice you may be able to take advantage of your special status to arrange 100% finance when you are ready to buy your premises, by using a combination of Goodwill Loan and a Commercial Mortgage.
However expert help will be essential to ensure that you secure the most competitive deal, and to help you through the application process.
We work with healthcare lenders across the entire UK market. We know those that may be able to offer the most attractive healthcare finance solutions. But we don’t stop there. We will work with you to understand your business plans, and use our expertise to help find the funding that meets your needs.
Frequently this involves ‘jigsaw’ funding. This is a package of loans, often from various borrowers, which can let you call on the most appropriate, and most cost-effective funding for each aspect of your purchase plans. We have found that it can help people ready to make the most of their business access a higher level of funding that couldn't be provided by one single financial solution - and reduce costs.
We also understand your sector - as we work with opticians across the country. We can provide solutions not just for buying premises, but for equipment, for acquiring a competitor or for any other business purpose. So, if you are an optician, whatever your funding needs we can help you answer them. To find out more about setting up the finance you need to acquire your premises simply call us. Our experts are ready to help.
REAL EXAMPLES OF WHAT WE CAN DO
Help arrange a 100% finance for an optician ready buy their premises
Find a lender to provide a commercial mortgage to acquire premises
Help arrange a Goodwill Loan to provide a deposit
Help arrange jigsaw funding to make property acquisition affordable
Find the most effective source of funding to allow an optician to fit out his new site
Funding the equipment you need
Buying new premises for your opticians business can leave you needing a wide range of new equipment - with little cash to spare. Fortunately, there are ways to provide the equipment you need for your shop, consulting room or office, and spread the cost with asset finance. It can be the most effective way get the equipment you need.
Asset Finance is a broad term that covers a range of funding solutions. Hire Purchase lets you acquire an asset right away, with a single deposit payment. It then lets you spread the costs in regular monthly instalments over an agreed term, often up to 5 years. At the end of this term, you own the asset outright.
Leasing works much like a rental agreement. It lets you use the equipment you need without having to buy it outright, with a payment each month to the finance company. For technical equipment which could go out of date, a leasing agreement can be ideal, as it can be easy to update when a better model becomes available.
Both new and used equipment can be funded with Asset Finance solutions. We frequently use our contacts to arrange deals better than those of equipment suppliers themselves.
Helping you build your profits
Jigsaw funding to fit your needsFunding can be drawn together from several sources and tailored to your needs.
Funding that recognises your statusAs a practice owner, you may be able to enjoy preferential rates from lenders.
No need for extra security with Goodwill LoansGoodwill Loans are secured on the future performance of your practice - there is no need to put your assets or possessions at risk.
Ensuring you have the equipment you needAsset finance can help you ensure you can equip your new premises to the standards you want, and spread the cost.
Early repayment optionsSome loan providers will accept early repayments, reducing the total cost of your borrowing.
Cutting borrowing costsAt Rangewell we search the entire UK lending market to find the most appropriate solutions for your funding needs, helping you reduce the costs of your expansion plans.
Download Rangewell’s free and detailed guide to Funding a New Business
Why do you need a business plan?
What type of business finance is available?
Is there an early repayment fee?
What does the British Business Bank think about small business loans?
What is a typical loan amount and interest rate?
Can I be accepted within 24 hours?
Can I get support for my business' cash flow?
What do I look for in a lender who offers financial services?
Are New Business Loans only available to UK businesses?
Do I have to be a limited company to use the platform?
What if I've been trading for less than 12 months?
My business isn't registered in England. Am I still eligible?
My registered office is not UK based. Does this affect my application?
I've heard of Funding Circle. Are they on your panel of lenders?
Are small business loans used to start or grow my business?
What terms and conditions can I expect?
Why can't I just use a Personal Loan?
Is there usually an arrangement fee?
Is a New Business Loan the same as a Start-up Loan?
What do typical monthly repayments look like?
Do all lenders have to be authorised or regulated by the FCA?
Are Start-up Loans only for limited companies?
Is it possible to get a 60 month term?
Is ita goodidea to use business credit cards to start or grow?
Key terms for start-up businesses to understand, including repayment holidays and fixed interest rate
Personal guarantees may be requiredYou and your partners, or co-directors if you have them, may need to make a personal guarantee to secure a loan for your business. This could affect your personal credit rating.
Borrowing has to be repaidThe money you borrow for your business will have to be repaid, with interest, from the profits you make. You must be confident that your business can generate the necessary funds.
Can you afford to risk your assets?The downside of a Secured Loan is that it means an increased risk to you, and could even put your home at risk if you could not keep up repayments.