For practice management and growth
Practice finance is often a requirement when buying a dental practice or medical business, however there are also many other reasons why dental and medical professionals choose to take commercial loans. It can help expand a business quicker than waiting for profits to materialise, it can help ease cash flow at certain times of the year and it can be used to help cover tax bills when there isn’t sufficient savings.
1) Buying a new medical or dental practice
Either buying an established practice for a set market price, or, starting a new practice from scratch is typically a costly exercise for doctors and dentists.
Whilst some may have long-term savings, from working in employed positions or as a self-employed associate prior to taking the plunge of business ownership, a commercial loan can help bridge the gap and enable entry to the business world and subsequent progress to be made much quicker.
2) Practice refurbishment
Your practice is the gateway to your business and should represent the quality of the treatment you are providing. To this extent, run-down treatment rooms with paint peeling off the walls and worn-out carpets don’t typically attract the right caliber of patients.
Keeping the practice to a high standard and in line with industry legislation, is almost certainly top priority for successful healthcare practitioners and taking a commercial loan can be a worthwhile to ensure the practice is maintained, and keeps up with competition too.
3) Investment in practice equipment
Ensuring your practice equipment and furnishings are up-to-date is not only a health and safety consideration for doctors and dentists but customers these days will select the practice they use based on factors such as this.
Is your practice equipment in perfect working order and not out-of-date? Are you keeping up with market demands? A commercial loan can be used to invest in new, modern dental and medical equipment to ensure your business continues to drive forward.
4) Managing cash flow and admin requirements
At times there are business advances that are desired or required, however, sometimes there is also insufficient funds to do so. Hiring new employees that will make a difference to the overall business profits, changing suppliers for a better arrangement on purchasing practice consumables as well as investment in training, software and technology, are all examples.
Practice finance is a means to obtain cash-flow and pay it back over manageable instalments according to the terms of the loan. It can enable the business to grow at a faster pace with an investment in the business’s future.
If cash-flow is a concern for your business, why not consider a Cash Flow Forecast? It helps to predict how the patterns of income and expenditure in your business so you can plan ahead effectively. Call today on 01403 780 770 to get connected to a professional.
5) Aiding the timing of tax payments
Tax is a payment that should always aim to be paid in full and on time, in line with requirements and legislation. Although, even with the best intentions there can be occasions when the timing of the tax payment is unfortunate. As long as it is managed properly, a commercial loan can help to ease the stress of meeting the tax payment in one lump sum and enables a steady payment through the year or over several months.
Of course, understanding the tax system and your responsibilities as well as saving for the annual tax bill are best practice. Though, not paying the tax bill due to lack of funds can result in higher penalties and greater interest than looking for alternatives.
Responsible borrowing
Naturally, the key to borrowing money is to do it responsibly. Working with a professional finance broker who knows the dental and medical market will help to ensure you don’t get into boiling water.
Fortunately, there are a range of commercial loans to help dental and medical professionals meet their full potential and achieve their business goals.