Helping vets buy premises

There may be two possibilities. You could buy your existing premises form your landlord - or find premises that you could take over and convert.

Whatever your plans, at Rangewell, we can help you find the best rates for your purchase plans and, in some cases, can even secure 100% funding.

There are several ways to fund your property purchase plans:

Commercial Mortgages for vets

Commercial Mortgages work much like a residential mortgage. They are a long-term, large-scale loan secured on the property itself,  and let you spread the cost of buying your surgery over 20 years or more. There is no set upper limit on what you can borrow, and all Commercial Property Finance is arranged on an individual basis. Rates and terms will be agreed based on your particular circumstances and reflect the profitability, and prospects of your business.

You may also be able to use a commercial mortgage to buy an existing veterinary practice. 

Using a Goodwill Loan

You cannot simply withdraw money from your existing veterinary practice to buy your premises. Reducing your working capital would cause problems with cash flow and jeopardise its future.

However,  as a vet, there is a solution which will provide the cash you need while leaving the funds in your business bank account untouched - a Goodwill Loan, also known as a Capital Withdrawal Loan or Cash Out.

Goodwill Loans for vets let you use the goodwill built up in your practice as the security for a loan. It can bring you a sum comparable to your annual turnover, with repayment terms of up to 15 years.

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 more favourable than with other types of lending. A goodwill loan can be used for any purpose apart from buying your home, and so may provide a simple way to provide a deposit to be used with a commercial mortgage.

Secured Loans

A Secured Business Loan 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 business assets or your home, that the lender can take and sell if you became unable to make repayments. They can have a part to play in expanding your practice, and could even be sufficient to acquire smaller premises.

Unsecured Loans

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, and 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.

Setting up the finance you need to buy property

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 buying property. Your special status may make it possible to get 100% finance for your plans.

At Rangewell, we work with lenders across the entire UK market and those who specialise in the veterinary sector. 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.