Finance Options for you and your practice

2. Loan Structure:

Financing your practice, equipment and fitout is not simply a matter of choosing the lowest rates. People tend to focus their attention on interest rates alone, but that is only one of the many factors affecting the overall cost of a deal. Different finance structures can affect the total cost of the transaction for your practice and personal assets. The final cost of the structure that you choose, will be governed by many factors including tax, how quickly you pay off the loan, interest rate, GST and other fees. It is important to realise that the final cost and interest rates may not correlate. Upon consideration of the loan structure, it is also important to consider the cost of each option, but remember cheaper isn’t always better. 

For more information, call 1300 131 141 Australia Wide to speak to one of Investec Medical and Dental Finance’s specialised Finance Consultants or visit

http://www.investec.com.au/#home/professional_finance/medical_professionals.html

As a healthcare professional, you are presented with many finance options for you and your practice so it’s important you have a thorough understanding of what is right for you. Poor financial decisions can potentially lead to short and long term damage to a practice, its profitability and return, and to you as an owner.

Some of the factors to consider when making finance decisions include:

1. Current Cash Flow:

All practices, especially in the first few years of business or during expansion, may experience limited or tight cash flow. To help compensate this, you may be able to consider obtaining a line of credit. The big catch in traditional bank Overdrafts lies in the fees you pay even when you aren’t using the facility. Most banks also require asset security for an Overdraft. As a specialist financier, Investec Medical and Dental Finance’s healthcare clientele benefit from a low cost alternative, without ongoing fees, and the benefit of both options – unsecured or asset secured Overdraft facilities.

Make sure that you shop around to get that the best product to suit your needs.