The buying bug

Becki Barnett looks at the difficulties in securing finance for a second practice.

If you own a dental practice there’s quite a high possibility that you’ve considered purchasing another. After all, there’s nothing quite as professionally satisfying as running a successful business, even if you did have to jump through hoops to get there. If you have got the buying bug and want to know what the score is with securing funding here’s what you’ll need to know.

Trying to get funding against your second practice can be a minefield if you don’t necessarily understand what the banks are looking for. Firstly, you would need to ensure that the accounts on your existing business are strong and that you can provide evidence that the business can comfortably afford to repay the debt that you have against it. This demonstrates to the bank that you are capable of running the business well, making you a strong candidate for further investment.