When was your veterinary practice finance last reviewed?

30 Jun When was your veterinary practice finance last reviewed?

For many veterinary practices, the cost of running a business continues to rise, particularly in areas such as utilities, rent, insurance, staff wages and clinical supplies.

While many of these pressures are outside your control, one area you can influence is the cost and structure of your borrowing.

If your finance arrangements haven’t been reviewed for some time, there is a strong chance they may no longer be the most suitable or cost-effective for your current position. Many practices remain on legacy funding structures that no longer reflect how the business has evolved.

In some cases, this can present an opportunity to reduce interest costs, improve cash flow, and release funds for reinvestment.

Why this matters for veterinary practices now

A significant proportion of practice finance was arranged when businesses were in earlier stages of growth or operating under different lending conditions, often at higher margins.

Since then, many practices have matured, with stable client bases, consistent turnover, and established clinical teams. However, borrowing arrangements are often left unchanged.

This is usually not intentional, but simply due to the demands of day-to-day clinical and operational work taking priority.

As a result, some practices are still carrying finance that is no longer competitive in today’s market.

Even small improvements in pricing or structure can have a meaningful impact on monthly cash flow.

Who should consider a finance review?

A review is particularly relevant for practices that fall into one or more of the following categories:

· Older lending arrangements (pre-Covid or post-credit crunch)

· Have grown significantly since original funding was agreed

· Using multiple finance facilities

· Planning expansion, refurbishment, or acquisition

Many established practices now have stronger financial performance than when their borrowing was first arranged, which can create scope to revisit terms.

More than just the interest rate

Refinancing is often seen purely as a way to secure a lower rate, but structure can be just as important.

Adjusting repayment terms, introducing flexibility, or incorporating interest-only periods can sometimes have a greater impact on cash flow than a marginal rate reduction.

For veterinary practices, this can directly support investment in clinical services, staffing, and facilities, improving both operational capacity and care.

Staying with your existing lender

Refinancing does not necessarily require changing lender.

Many existing lenders are open to reviewing terms for well-performing, established practices, which can sometimes result in improved pricing or structure without moving facilities.

However, alternative options in the wider market should also be considered to ensure overall value is being achieved.

Costs and considerations

Refinancing is not always the right solution.

There may be associated costs, including valuation fees, legal costs, arrangement fees, and early repayment charges.

These should always be weighed against the potential savings and cash flow benefit.

The focus should be on the overall financial outcome rather than the headline interest rate alone.

How the lending market has evolved

The veterinary finance market has become more flexible in recent years, with lenders offering a wider range of structures, including:

· Longer repayment terms

· Partial interest-only options

· Improved lending against goodwill

· Competitive pricing for established practices

As a result, many practices that previously had limited options may now find more suitable structures available.

Final thoughts

Reviewing existing borrowing is about ensuring that your current financial arrangements still reflect the reality of the practice today.

Many veterinary businesses are operating with finance agreements agreed under very different conditions. A straightforward review can often identify opportunities to improve cash flow, increase flexibility and support further investment.

If you would like to explore whether your current finance structure is still appropriate for your practice, a no-obligation review can help clarify the position.