Practice Financing: The Importance of Representation
Doctors, dentists, and veterinarians have a wealth of expertise spanning many different topics. For example, they know more than most about anatomy and physiology, about the way different medications interact, and about how to provide exemplary patient care. They may also have ample expertise in the field of clinical technology, or legal compliance.
One area where providers may be less experienced is in banking. It’s precisely for this reason that it makes sense for providers and practice managers to bring representation with them when they go to a bank or lending institution to seek a loan on behalf of their practice. Simply put, it’s wise to bring along an attorney or someone else with subject-matter expertise in the fields of banking and lending.
Why Bring Representation to Seek Practice Financing?
There are a number of reasons why enlisting representation is important.
1) Your representation will understand how banks speak.
Just as medicine, dentistry, and veterinary medicine have their own vocabularies, full of technical terms and jargon, so the world of banking has its own unique language. If you don’t speak that language, it’s easy to feel overwhelmed by all the options or to feel unsure whether you’re making a fully informed decision.
That’s where having representation is so important. Someone who speaks the same language as your lender can function as a kind of translator, ensuring you make a confident decision about your practice loan.
2) Your representation will know what lenders are looking for.
The process of obtaining financing for your dental practice can sometimes be complicated. Naturally, your lender will want to gather quite a bit of information from your practice to help them evaluate your creditworthiness. Some of that information can be provided by the doctor, dentist, or veterinarian. For example, the lender will likely want to know more about the history of the practice, the range of services offered, and the clientele.
But other information will be more technical in nature. Certainly, the lender will want to know about the financial history and the credit history of the practice. You can also anticipate some questions about the legal structure of the practice. When you meet with your lender, you’ll want to have someone with you who can answer these questions comprehensively, while also furnishing the types of detail that the lender will desire as they weigh their decision about offering you a loan.
3) Representation can help you make the best decision for your practice.
Sometimes, comparing different loan options can feel like you’re weighing apples against oranges. For example, you may be offered different loan types, different loan terms, secured versus unsecured loans, and more. Without intimate knowledge of banking and lending, it can be tough to determine which of these products is really the most financially advantageous for your practice. And even if you have some idea, it can be tough to proceed with confidence.
Having a trusted, knowledgeable financial professional with you can give you the knowledge and the confidence you need to do what’s right for your practice. What’s more, the right representation may be able to identify opportunities to negotiate better terms, further securing a financial advantage for your practice.
Do You Have the Right Experts in Your Corner?
Doctors, dentists, and vets all have considerable expertise. When seeking a practice loan, however, it’s important to have someone in your corner who has banking expertise. That’s where our team of consultants comes into play.
We’d love to provide you with confidence as you pursue practice financing. Reach out to talk to our team of qualified consultants.