In all the financial gloom and doom it is nice to hear that there can be good news in the world of banking and finance!
‘Banks’ and ‘good news’ are words that are rarely nowadays used in the same sentence – but it is true, contrary to popular belief, the banks ARE actively lending to the dental profession.
There is though a BIG difference between market perception and market reality. Some out there would have us all believe the banks have simply shut up shop and indeed any flick through the pages of the Daily Mail or Daily Express would back up this view.
Market reality, however, is very different – there are now more high street banks than ever before who will lend to dentists who wish to purchase a practice.
At last count, there are NINE Banks who understand dental practice goodwill and will lend for a new practice purchase – be it leasehold or freehold.
Recently, Russell Abrahams, of Abrahams Dresden solicitors, had a client in London who needed finance and approached me.
Russell said: ‘I felt that this could be really challenging as the dentist wasn’t the youngest, needed 100% funding and the whole project was not a sexy lend. I was sceptical!’
I was pretty sure that we could help the client – often, even if a bank says no – this doesn’t mean there is nothing wrong with your proposal. You simply do not fit that bank’s credit criteria.
And remember there are potentially EIGHT other banks out there looking to lend. We duly delivered the finance for the client in question.
The most common question asked of me is ‘Are the banks still lending?’ My answer is always a resounding YES.
In 2011, we submitted more than 210 individual dental lending proposals to the banks with overall borrowing of £101 million.
Of these, just over 93% were approved by at least one of the banks. The clients proposal quite often needs an element of ‘tweaking’ to ensure it is presented in a way which will appeal to the banks; however once submitted I am confident of securing a positive outcome.
Even if your Bank says no – this quite often means there is nothing wrong with your proposal – you simply do not fit that Bank’s credit criteria.
And remember there are potentially EIGHT other Banks out there looking to lend.