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Financing Options for Your Practice Purchase, Start-Up or Expansion Project Part 2

By: Jim Baum

At-A-Glance:

  • Loan options are based on the type of project you pursue.
  • Conventional and SBA loans both may have distinct pros and cons.
  • Consider interviewing potential lenders to see if their terms meet your needs.
  • Using a specialized healthcare lender may save you both time and money.

Specialty Lender Financing

Using a specialized healthcare lender for your project may save you both time and money. Unlike most local banks, a specialized lender may combine your practice, equipment or property purchases into one loan package, providing a streamlined process with one credit application, one set of fees and one closing. In addition, specialty lenders may provide a broader range of loan options. They may also offer project management assistance and other business resources to help you make the start-up, practice purchase or expansion process run more smoothly.

Loan specifics may include:

  • Up to 100% financing with flexible repayment plans
  • 10-year amortization
  • Low closing costs
  • Financing based primarily on historical or projected practice income rather than personal assets

Questions to Ask Your Lender

Consider asking the following questions of potential lenders to help gain an understanding of the type and quality of service they may provide for your project.

Which specific markets do you serve?

Does the lender understand the unique financing needs of practices in your industry or speciality?

May I speak with your current practice customers?

Speaking to references may help you determine whether this lender can support your specific needs. If a lender does not have or will not offer the names of practice owners, you may want to consider other options for a lender.

How does the review and funding process work?

Funding may occur anywhere from a couple of weeks to several months post approval.

Is there a prepayment policy?

Ensure there are no prepayment fees or penalties, and avoid balloon payments if possible.

Who will fund and service my loan?

You may want to work with a financing team throughout your project that is available to answer questions, provide useful resources, and help you with any potential funding issues. Consider a lender who will not package your loan and sell to a third party.

Who do I call if I have questions or need help?

Having a name, and not just a department can be helpful during the life of the loan when you have questions.

How can you help if I experience problems in my practice?

You want to know your lender is part of your team and available to help you overcome challenges.

Understanding your financing options will help you select the loan that is just right for your situation so you can get your practice off to a successful start.

About the Author

Jim Baum is Vice President, Business Development Manager for Wells Fargo Practice Finance in the New York / New Jersey region. In addition to his experience in the dental, veterinary and medical fields, he can provide information about credit management, practice acquisitions, start-up projects, practice expansions, business refinance, and practice equity loans. Jim brings over 30 years of experience working with healthcare professionals and is a national speaker presenting at tradeshows, seminars and dental schools throughout the year. Contact: Jim.baum@wellsfargo.com or 1-800-897-2208

View all articles by Jim Baum


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The articles and materials on the Wells Fargo Practice Finance website are provided for general information only and do not constitute, nor are they intended as, a substitute for consultation with accounting, tax, legal or other professional advisors. Wells Fargo makes no representation regarding the articles available in the Strategies for Success Library or the completeness or accuracy of the information contained therein. The articles and the information contained therein may be incomplete, may contain errors or may have become out of date. Wells Fargo makes no commitment, and disclaims any duty, to update any of the articles or materials in the Strategies for Success Library.

The views expressed in the articles are those of the authors alone. They may or may not reflect the views or opinions of Wells Fargo.

Wells Fargo Practice Finance is the only practice and commercial real estate lender recommended for members of the American Dental Association.

ADA® is a registered trademark of the American Dental Association. ADA Member Advantage is a service mark of the American Dental Association. ADA Member Advantage is a program brought to you by ADA Business Enterprises, Inc., a wholly owned subsidiary of the American Dental Association.

All financing is subject to credit approval.

Wells Fargo Practice Finance is the only practice and commercial real estate lender recommended for members of the American Dental Association.

All financing is subject to credit approval.

Wells Fargo Practice Finance is the only practice and commercial real estate lender recommended for members of the American Dental Association.

All financing is subject to credit approval.

Wells Fargo Practice Finance is the only practice and commercial real estate lender recommended for members of the American Dental Association.

All financing is subject to credit approval.

Wells Fargo Practice Finance is the only practice and commercial real estate lender recommended for members of the American Dental Association.

All financing is subject to credit approval.

Wells Fargo Practice Finance is the only practice and commercial real estate lender recommended for members of the American Dental Association.

All financing is subject to credit approval.

Wells Fargo Practice Finance is the only practice and commercial real estate lender recommended for members of the American Dental Association.

All financing is subject to credit approval.

Wells Fargo Practice Finance is the only practice and commercial real estate lender recommended for members of the American Dental Association.

All financing is subject to credit approval.

Wells Fargo Practice Finance is the only practice and commercial real estate lender recommended for members of the American Dental Association.

All financing is subject to credit approval.

Wells Fargo Practice Finance is the only practice and commercial real estate lender recommended for members of the American Dental Association.

ADA® is a registered trademark of the American Dental Association. ADA Member Advantage is a service mark of the American Dental Association. ADA Member Advantage is a program brought to you by ADA Business Enterprises, Inc., a wholly owned subsidiary of the American Dental Association.

All financing is subject to credit approval.

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