Dental Tribune United Kingdom Edition

Call us 01227 780009 Soft Tissue Management Laser specialist since 1992www.quicklase.com PowerPen £2500 inc VAT £4100 inc VAT Dual 8w 2w 810nm Cordless info@quicklase.com 4w 810nm + 4w 980nm Ultimate Cutting Ultimate Coagulation Ultimate Price British Built PPenDual8WQL280311RG Lim ited O ffer 15Money MattersApril 25-May1, 2011United Kingdom Edition associates put their hard earned savings as deposit towards a house purchase (as mortgage providers also now need 20 per cent) with nothing left for the practice purchase. Equity With house prices static at present, once you have put your deposit towards the house, it simply cannot be claimed back. Whilst the banks can con- sider your house as security, they will tend to place a ‘secu- rity’ value of 70 per cent of open market value on the property – so once discounted by this figure, less existing mortgage, there tends to be no equity left. For example, a house of £500,000 value with a £300,000 mortgage. Banks would value at 70 per cent of £500K less the mortgage leaving ‘security’ val- ue of £50,000 (somewhat less that the true equity of £200,000). BUY YOUR PRACTICE FIRST AND YOUR HOUSE SECOND - your deposit can be put towards the practice pur- chase. Once you have the prac- tice you would expect to earn more than you would as an as- sociate - you should then accu- mulate savings at a faster rate to then enable you to put a deposit down for a larger house close to where the practice is. In most cases you would earn more pound for pound purchasing a dental practice than investing in property. The banks ARE still lend- ing for practice purchase and the dental sector is viewed by them as relatively low risk - which is great news for pro- spective purchasers. The right result However, it is essential that your application is present- ed in the right manner to the right person at the right bank. Simply walking in to your lo- cal branch will not achieve the right result, and could go against you if the local manager does not understand the pro- fession and says ‘no’: Once you receive a ‘no’ it is then extreme- ly difficult to overcome this. ALWAYS engage the services of an independent specialist to work on your behalf (we cur- rently have access to SEVEN banks who are actively lend- ing to the dental market), who will package the proposal in a manner which will satisfy the banks credit criteria (all banks’ have slightly different require- ments) and ensure you are per- sonally introduced to a number of the specialist dental divisions of these banks. By involving more than one bank, a degree of competition can also be gener- ated to ensure that more com- petitive terms are secured. Remember that you only get one chance to make a first im- pression with the bank - make sure you get it right. DT About the author David Brewer has worked for the den- tal profession for more than 15 years helping more than 1000 clients secure funding for practice purchase and start up. With his banking background and friendly pro-active approach, he is ide- ally placed to provide advice and guid- ance to clients who are looking to pur- chase a practice or simply review their existing arrangements. David works with Frank Taylor and Associates and can be contacted on 08456 123434 or david.brewer@ft-associates.com ‘The banks ARE still lending for prac- tice purchase and the dental sector is viewed by them as relatively low risk - which is great news for prospective purchasers’ ‘Remember that you only get one chance to make a first impression with the bank - make sure you get it right’