Securing Funding for an Established Dental Practice
Background
Three highly experienced and qualified dental professionals decided to incorporate their long-established dental practice into a newly formed corporate structure. This transition marked a key stage in the evolution of their business, aiming to streamline operations, improve tax efficiency, and support long-term strategic growth. As part of the restructure, they sought to refinance their existing lending through the newly created limited companies.
By leveraging the combined value of both the dental practice and its freehold property, they were able to release capital from the business. These funds were earmarked for a significant refurbishment project, designed to enhance both clinical functionality and patient experience.
The Practice
The mixed practice is housed in a generously sized, converted residential property, offering five fully equipped surgeries. With a sleek, contemporary interior and a warm, professional atmosphere, the environment reflects the high standards of care delivered.
The Challenge
Initially, the partners approached their existing lender directly to support the incorporation and refinancing. However, they were unable to secure the full level of funding required and in addition the rates offered were not overly competitive. The initial proposed structure , combined with the additional funding request did not satisfy the lender’s initial appetite—highlighting a common challenge in the sector: it’s not just who you approach, but how the opportunity is presented.
The Outcome
With our guidance as a specialist healthcare finance brokerage, the proposal was restructured and tailored to meet the lender’s expectations. We leveraged our relationships with specialist teams within the banks who understand the nuances of the dental sector.
Interestingly, the funding was ultimately secured from the Clients’ original lender—this time via the appropriate specialist lending channel. The final deal not only refinanced the existing borrowing but also released the additional capital needed to complete the refurbishment project.
The facility was arranged over a 20-year term, on highly competitive terms, resulting in a lower interest rate on the Clients existing finance.
Key Takeaway
This case underlines the real value a specialist broker brings—not only in identifying suitable lenders, but in shaping and presenting a proposal that clearly articulates the business case. In niche sectors like dentistry, accessing the right people within a bank—and presenting the case in the right way—can be the difference between a declined application and securing the funding required.