Finance considered alongside the practice you want to run
Buying or expanding a healthcare or professional practice combines a business decision with questions about premises, people and income. The funding needs to fit the transaction and leave the business able to operate after completion.
TLA Finance can help you review the borrowing requirement and prepare a clear lending proposal. We work with the information from you, your accountant, solicitor and relevant sector specialists to understand the case.
From Amersham, TLA Finance supports clients in Buckinghamshire, London, the Home Counties and across the UK.
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Any property or asset used as security may be repossessed or otherwise at risk if you do not repay the debt secured on it. Personal guarantees may be required. Funding is subject to underwriting, valuation and satisfactory transaction documents. A professional qualification or established practice does not guarantee approval.
Start with what is being purchased or funded
A practice acquisition may include goodwill, equipment, stock, a freehold property or a leasehold interest. Expansion can involve premises, refurbishment and working capital. These elements may need different forms or terms of finance.
Examples include dental and medical practices, pharmacies, care businesses and other professional firms, subject to lender appetite and the proposed structure. We will establish the scope of our service for your particular requirement.
Distinguish business value from property value
An agreed asking price is not necessarily the value a lender will adopt. The value of premises, equipment and goodwill may be assessed separately, and the loan must also be supported by an acceptable repayment profile.
If a lender’s valuation differs from the transaction assumptions, the structure, cash contribution or price may need review. Funding should not be committed on the assumption that a particular goodwill multiple or valuation will be accepted.
Understand sustainable trading income
We will seek a clear explanation of how the practice earns its income and what costs are needed to maintain it. Historic profit can change when ownership, staffing, rent or the working pattern of the principal changes.
The lender may need to understand the balance of public-contract and private income, customer or patient concentration, key contracts and reliance on particular professionals. The income shown in accounts must be reconciled with the legal arrangements supporting it.
Ownership, contracts and regulatory matters
The borrowing entity, trading entity, property owner and relevant contract holder may not be the same person. Those relationships need to be explained and documented so that the lender and your advisers can assess them.
Your solicitor and appropriate sector advisers should confirm required consents, registrations, contract arrangements and the legal steps for a transfer or change of ownership. Finance approval does not replace any regulatory or professional approval.
Leave room for the business after completion
The acquisition price is not the whole cash requirement. Consider professional fees, transaction taxes, stock, equipment, initial payroll, planned improvements and a reserve for unexpected disruption.
A repayment plan should reflect sustainable cash generation and your personal drawings or remuneration where relevant. Stretching the purchase funding so far that there is no operating headroom can put the business under pressure.
How we prepare the finance proposal
1. Define the transaction
We establish what you are buying, the proposed ownership, price, timetable and your available contribution.
2. Review the evidence
We consider the trading information, property position and relevant valuations, identifying questions that need answers from the seller or advisers.
3. Explain suitable routes
We discuss relevant lending options available through our service and the material security, cost and repayment conditions.
4. Coordinate the application
We help progress lender queries alongside your professional advisers. Completion remains subject to all lending and transaction requirements.
Information for your first discussion
Please keep patient, client and employee personal information out of the initial enquiry. We can explain what financial documents are required and how to provide them securely.
Important information
Any property or asset used as security may be repossessed or otherwise at risk if you do not repay the debt secured on it. Personal guarantees may be required.
Many business-purpose finance arrangements are not regulated by the Financial Conduct Authority. The position should be established for the specific facility. TLA Finance does not provide legal, accounting, valuation or clinical-regulatory advice. Obtain appropriate specialist advice before committing to a transaction.
Frequently Asked Questions
Can finance include both a practice and its premises?
It may be possible, but goodwill, property, equipment and working capital need separate consideration. The facility depends on valuation, affordability, security and lender criteria.
Is full purchase-price funding available?
It must not be assumed. The lender may require an equity contribution, additional security or funds for costs outside the loan. We will assess the actual transaction.
What if the bank’s valuation is below the agreed price?
The funding structure and your contribution may need review, or further evidence may be relevant. A lender is not obliged to adopt the seller’s valuation or asking price.
Do public-sector contracts guarantee lending?
No. The lender will assess the contract arrangements, performance, costs and the whole business. Legal or regulatory consents may also be required for the transaction.
Can you assist with refinancing or expansion?
We can discuss the objective, existing borrowing, premises and project budget and identify the relevant lending route, subject to the scope of our service and lender criteria.
Should confidential patient or client records be sent?
No. Do not send personal patient or client records through the enquiry form. We will identify the financial and business evidence needed and agree a secure process.
Speak to TLA Finance
Plan finance for a practice purchase, refinancing or expansion.
Discuss practice finance
Provide your basic contact details and select your preferred time and method of contact. We will explain the next steps and how to supply supporting documents securely.
Please do not include bank-account numbers, identity documents, credit reports or confidential business records in this general enquiry form.
