Buying a medical practice

An acquisition loan funds the purchase of an established practice, with repayments serviced by the cash flow the practice already generates. Lenders typically assess the practice's financial history, the patient or client base, the lease, and how dependent revenue is on the departing vendor. Those same factors are all tied up in how the goodwill is valued, which is why they matter twice. Our job is to have those questions answered inside the application before a credit team asks them, and to put the deal in front of the lender whose policy actually fits it.

Goodwill is everything the practice is worth beyond its equipment and fitout: the patient base, recurring billings, referral relationships and reputation. In most industries banks will not lend against it. For medical, dental and veterinary practices they will, and eligible medical professionals can access up to 100% goodwill lending on practice purchases. Every lender approaches goodwill differently, so the same practice can land very differently from one lender to the next. That is the power of speaking to multiple lenders through MedX Finance rather than taking one bank's view. Background reading: goodwill loans for medical professionals.

Not always. There are lenders that will fund the right purchase without a cash deposit or bricks and mortar security, and where a lender does want additional cover, we will show you exactly what it changes before you commit. If the sale includes the premises, the freehold can usually be financed alongside the practice under a commercial property facility.

1. Valuation and appraisal. Establish what the practice is genuinely worth: billings, patient base, staffing, lease terms and equipment condition.
2. Offer and heads of agreement. Agree price and key terms with the vendor. Involving your specialist here means the deal is shaped with lending in mind.
3. Due diligence. Your accountant and solicitor verify the financials, contracts, lease and compliance. We run finance in parallel so lending is never the bottleneck.
4. Finance approval. Application packaged and submitted to the lender matched to your profession and the deal structure.
5. Settlement. Funds flow, the practice transfers, and you own it. Timeframes vary with the deal, and preparation is what keeps you at the short end. General information only, not financial advice. Eligibility, structures and terms depend on your circumstances and lender criteria.

Plenty of our clients talk to us long before a loan exists: weighing a practice purchase, planning a fitout, or working out what their career unlocks. That early thinking costs nothing and is some of the most valuable work we do. And when you are ready to move, it runs like this:
1. Today: talk to a specialist. 15 minutes on the practice you are looking at and your position. No credit check, no cost.
2. Within 48 hours: your lending strategy. Which lenders fit the deal, what you can borrow, and how the goodwill component should be structured.
3. Application to approval. We package, submit and chase. Timing depends on the lender and the deal, and you will always know where things stand.
4. Approval to settlement. We coordinate with your accountant, solicitor and the vendor's side through to handover, and stay your specialist for the lending that comes after.