Dental Elite’s Becki Barnett says there’s never been a better time for dentists to borrow
It can be difficult to keep up with the current trends in the ever-changing dental practice market. For instance, were you aware that the banks are lending? Furthermore, did you know that the banks are also currently offering exceptional interest rates that are possibly the best in years?
Of course this is partly attributable to the UK’s low base rate – which has remained at 0.5% since 2009, and as a result, typical loan rates can range between 1.98% and 4%. With the interest rate linked to the strength of the target practice and the buyer, both first-time buyers and large corporate groups can achieve low rates coupled with great terms. While the banks continue to lend without the base rate increasing, good deals are easily available.
Now is also a good time to borrow because the banks have much more confidence to lend in comparison to several years ago when the economy plummeted. As a result of the upturn, the Enterprise Finance Guarantee (EFG) loans are now a last resort as opposed to a first port of call for lenders. If you have a loan against the EFG, it would be prudent to seek guidance from a dental finance specialist – just because the bank needed that security then, doesn't mean they do now.
For those presently looking to secure a loan, there are still multiple factors that need to be taken in to consideration. For instance, do you have the relevant knowledge of the financial process? Is the practice you’re looking to buy financially viable? Have you completed the relevant and necessary research?
The banks are confidently lending at decent rates, but in order to secure the right deal with the right bank, seeking advice is key. It is also important to remember that the work doesn't stop once the loan is secured. In fact, buyers should consider revisiting their loans every three years to ensure that the best deal is utilised – if it's the difference between paying 1.98% over base rate compared to 3.5% plus EFG premiums, it’s time well invested.
The financial commitment of buying a practice can be daunting and DE Finance is dedicated to ensuring that its buyers receive an on-going service with personalised advice to get the best deal available. Now may be a good time to secure a loan at a good rate, but it is still important to utilise the support of an experienced dental finance specialist. To get the optimum results, research, assess and seek advice – that dream practice could be yours.
Author Becki Barnett
Becki has worked in a number of senior management roles in the recruitment and health sectors. She joined Dental Elite in early 2013 in a business development role and was tasked with establishing and developing a practice finance division that offers a personal service.