Healthcare and professional practice
Lenders like practices. Billings are predictable, the licensing is a barrier to entry, and the principal is a strong personal covenant. The financing follows the succession, not the equipment.
How the balance sheet reads.
Practice purchases are often financed at higher loan to value than other acquisitions because of the earnings stability.
Clinical equipment finances readily where the manufacturer is recognised.
Where goodwill is a large part of the price, the transition agreement matters as much as the numbers.
What usually does the work here.
WHERE IT GETS DIFFICULT
- Professional corporation structures and provincial rules restrict who can own what.
- A retiring principal who holds the patient or client relationship is a real transition risk.
- Acquisition and buyout financingDeal dependent, commonly $250,000 to $10,000,000 Capital stacks for buying a business, a franchise, or a partner out, built from bank debt, seller paper and buyer equity.
- Equipment and vehicle financingDriven by asset value, commonly $25,000 to $5,000,000 Finance sized against the asset itself, for machinery, fleet and production systems, including sale and leaseback on equipment you already own.
- Term loans$100,000 to $5,000,000 and above A fixed sum advanced at closing and repaid over a set schedule, for growth, refinancing or a single large investment.
A healthcare and professional practice file, read properly.
Tell us the amount and the purpose, and we will say what is realistic in this sector.
No lender hears your name until you say so.
A request emailed to twenty lenders leaves twenty records. The next one to see it reads the declines before they read the deal, and a file that looks shopped is priced as one. So the list is built with you, approved by you in writing, and nothing leaves this office before that.
- Call
- 416-841-8468
- Hours
- Weekdays, Toronto time