There are many options available to business owners and operators within the health industry who need finance. BDO expert Darren Stacey explains why lenders are often more comfortable lending to healthcare operators compared to other sectors of the economy.
If you need finance and you are a health professional, or own or operate a business in the industry, there are fantastic options available for you.
Lenders are often more comfortable lending to operators in the industry compared to other sectors of the economy, as there is good stable income, often backed by Government funding, and businesses are generally very profitable.
What type of businesses are covered by the definition of 'health industry'?
The health industry segments can vary between banks, but it usually includes:
- General Practitioners (GPs)
- Dentists / Orthodontists / other dental specialists
- Childcare centres
- Aged Care
- Retirement Villages
Different approaches will apply to each, and those professionals who are effectively self-employed can often access the highest levels of support (such as GP’s, Specialists, Dentists, Vets and Physiotherapists).
What will lenders finance?
Lenders will consider most worthwhile business growth requirements or asset acquisitions, such as:
- Commercial property purchase (as an investment or to use for the business)
- Purchase a patient base or existing business/practice
- Goodwill funding and goodwill redraw for reinvestment purposes
- Medical equipment
- Fit out of the practice/business or clinic
- Practice renovation or expansion.
Lenders can finance up to 100% of a purchase (be it a property, a practice, a patient base or equipment) which provides fantastic support for expansion or acquisition. Lenders will often also assist with transition or switching costs if coming from another lender, waiving the costs of as legal fees, valuation fees and others.
What about my personal finance needs?
Similarly, the appetite to provide finance to individuals working in this industry is also extraordinarily strong. Lenders will often provide loans with a higher LVR for the purchase of a house and/or waive lenders mortgage insurance, together with discounts on interest rates and fees.
If you are in the health industry, and need finance for your next purchase, your growth plans or expansion, please speak to us. Even if you do not require any additional debt, but want a better deal on your existing finance, we are able to help.
Darren Stacey is an authorised credit representative 519653 of BDO Corporate Finance Ltd (ACN 010 185 725) Australian Credit Licence 24551
Your full financial needs and requirements need to be assessed prior to any offer or acceptance of a loan product.
BDO Corporate Finance Ltd ABN 54 010 185 725 Australian Credit Licence No. 245513 is a member of a national association of independent entities which are all members of BDO Australia Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Corporate Finance Ltd and BDO Australia Ltd are members of BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional Standards Legislation.