100% finance for a second site for your dental practice
Talk to Rangewell – the business finance expertsGrowing your business with a second surgery could grow your profits- but it can mean a very large investment. At Rangewell, we can use our contacts across the entire UK lending industry to provide the scale of funding you need.
As a dentist, there is a limit to the number of patients you can see in a day. But there need not be a limit to the amount of work your practice can do. Opening a second surgery could be a rewarding investment, and at Rangewell, we can make it possible.
More patients mean more profits, but you will not want to compromise care by rushing a consultation.
Taking on a junior partner might be a solution, but restrictions on space might make it impossible to bring in another chair. The solution could be to acquire new premises and set them up as a branch practice.
Of course, there will be some major costs. New premises with transport links and sufficient space will be expensive. You will need to refurbish it and set it up with new equipment. You will also need to find staff, including a qualified junior - but it could mean doubling your patient list and turnover.
At Rangewell, we work with dentists across the country. We can help you use your special status to get up to 100% funding when you want to expand your practice.
Using a Goodwill Loan
You cannot simply withdraw money from your existing practice without cashflow problems.
But you can use the wealth built up in your practice, while leaving your current business unaffected and the funds in your business bank account untouched with a Goodwill Loan.
Instead, you use the goodwill built up in your existing practice as the security for a loan. 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.
Goodwill Loans are particularly suitable for dentists as they recognise your professional status with very competitive rates. The lender will simply need to review your accounts for the last few years to make a decision. Interest rates will be agreed when the loan is taken out and, although they will be variable, are likely to remain significantly more favourable than with other types of lending.
A Commercial Mortgage
Premises will be a major cost factor. You will need the correct type of business premises classification, and probably want the traditional solution of premises on the high street which can attract passing trade. You may be able to take suitable above-shop premises on a long-term lease or you might consider a Commercial Mortgage. Commercial Mortgages work much like a residential mortgage, and can be used to help you buy a surgery or even an existing practice as a going concern.
Funding the equipment you need
You will need cost-effective solutions for equipping your new dental surgery Equipment can be a major investment - a chair alone system alone could start at £12,000 and the list of equipment you need will go on growing.
Fortunately, there are ways to provide the equipment you need, and spread the cost with Asset Finance. It can be the most effective way get the equipment you need for your surgery – or anywhere else in your practice. 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.
Hire Purchase is often used for items which have a high cost and a relatively long life.
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. Leasing can also include maintenance agreements - meaning that keeping your equipment in perfect condition remains the responsibility of the lender - helping you avoid any unexpected costs.
Both new and used equipment can be funded with Asset Finance solutions.
Asset Finance from equipment suppliers
Most suppliers can help you afford the equipment you want by providing their own Asset Finance arrangements. But in many cases, they will be making a profit from providing the finance as well as on the equipment itself.
Arranging your own finance, with help from the Rangewell team, could mean a more competitive rate and leave you better off, even if they offer 0% finance to close the sale. We have found that this sort of deal often hides an inflated purchase price. The chances are we can help you find an Asset Funding solution or a straightforward Business Loan that saves you money – even compared with 0% finance.
Secured Loans can provide a high level of funding, with rates that can be as low as 2% above base rate, and ten or more years to repay. They are secured because they are supported by security, such as your existing premises or your home, that the lender can take and sell if you became unable to make repayments. This reduces the risk to lenders, and allows them to reduce the cost to you.
Unsecured business loans are a straightforward way of borrowing, and operate much like a personal loan which can be used in any way you wish. They are suitable for smaller sums, up to £250,000, but often far less. The loan is repaid in monthly or quarterly instalments over an agreed term under 5 years.
Decisions can be fast, inside a working day with some lenders, but you will need to provide a Personal Guarantee, meaning that you will become personally liable for the debt if your business was unable to pay.
An Unsecured Loan could be a simple way to deal with incidental costs which can be inevitable when setting up a second branch for your business. Call us to discuss your borrowing needs, and whether an unsecured loan can provide the answer for them.
REAL EXAMPLES OF WHAT WE CAN DO
Help arrange a 100% for an dentist, as the basis of an acquisition plan
Find a lender to provide a commercial mortgage
Help arrange asset finance to equip a surgery
Help arrange jigsaw funding for every stage of an expansion programme
Find the most effective source of funding to take on a junior
Taking a major step like acquiring a branch may mean a range of funding requirements that don’t fit a single solution. We can provide Jigsaw Funding - a bespoke package made up of the most appropriate type of business funding for each purpose. So your practice might have Jigsaw Funding made up of Asset Funding for equipment, a Secured Loan or Commercial Mortgage to acquire premises, and a cashflow solution based on a Short-Term Loan.
Setting up the finance you need to grow your practice
As a professional with your own practice, you may be in a very good position to raise the finance you need when you are ready to consider expansion. Your special status may make it possible to get 100% finance for your plans.
Many lenders will be happy to work with you - but not all will be able to offer the most competitive solutions for your needs.
At Rangewell, we work with lenders across the entire UK market. We know those that may be able to offer the most attractive funding 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. We know the lenders who can offer the most competitive rates for all types of finance, including Professional Loans, Unsecured and Secured Loans, Invoice Finance, Asset Finance, Merchant Cash Advance, Commercial Mortgages, Growth Finance and more.
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 could be provided by a single finance option - and reduce costs.
To find out more about setting up the finance you need to grow your practice and open a second branch simply call us. Our experts are ready to help.
Meet real dentists who we have helped
Helping you build your profits
Funding tailored to your needsFunding can be drawn together from several sources and tailored to your needs.
Funding that recognises your statusAs a professional practice owner, you maybe able to enjoy preferential rates for borrowing.
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 practice 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 Business Lending
What kinds of business funding are there?
Why you must find the right lender to cut costs
The downsides of borrowing
What paperwork will you need?
Guarantees and security
Key Terms to check
A long-term commitmentA funding package will mean a long-term commitment, with ongoing monthly repayments.
You may need to repay if you sellIf you sell your business, you will need to repay your funding.
A personal liabilityLoans will be secured on your existing practice, but you may be personally responsible for their repayment.
Our service is...
ImpartialTransparent and independent, treating all lenders equally, finding the best deals.
In-depthEvery type of finance for every type of business from the entire market - over 300 lenders.
In-personSpecialist Finance Experts support you every step of the way.
FreeWe make no charge of any kind when we help you find the loan you need.